Since 2000, the U.S. and the West have seen some dramatic ups and downs in the price of housing. How has Utah fared?
A new study by the research company Construction Coverage ranks the Salt Lake metropolitan area the 13th most stable market for homebuyers when it comes to swings in home costs among the nation’s cities and surrounding areas that have a population of at least 1 million.
Las Vegas was determined to be the most volatile market, closely followed by Phoenix.
According to the study, a buyer in the Salt Lake area over the past 25 years faced a 20.7% chance of experiencing a 5% price drop after purchasing a home. That number is 26.4% among the nation’s large metropolitan areas.
In Las Vegas, however, the study puts the odds of ending up with a home that is worth less than the price paid at 48.5%. For Phoenix, it’s at 47.5%. Three large metropolitan areas are deemed sure bets, given a 0% chance of such volatility: Buffalo, New York; Oklahoma City; and Pittsburgh.
The difference, the study’s findings pointed out, is that those cities offer “relatively affordable home prices and more steady demand” while places like Las Vegas have seen “rapid population growth, investor-driven demand, and economic cycles tied to specific industries.”
The other large metropolitan areas seen as more stable than Salt Lake are: Rochester, New York; Tulsa, Oklahoma; San Antonio, Austin and Houston in Texas; Nashville; Washington, D.C.; Raleigh, North Carolina; and Louisville, Kentucky.
How the study says Salt Lake compares to the rest of the country:
Salt Lake area
- Largest price drop (2000–present): $72,137.
- Largest percentage price drop (2000–present): 27.6%.
- Median home price: $543,783.
- Percentage change in home price (2000–present): 215%.
Nationwide
- Largest price drop (2000–present): $49,819.
- Largest percentage price drop (2000–present): 24.2%.
- Median home price: $356,585.
- Percentage change in home price (2000–present): 196%.