St. George Utah: Why Investors Love This Fastest Growing Region
Despite the recession, St. George, Utah is growing economically, and the real estate market is also quite appealing. St. George sits on the southwest edge of Utah bordering Arizona and the Mojave Desert. Investors are drawn to this rural feeling city because there are more reasonably priced homes when compared to other neighboring western states like California and Colorado. It is one of the fastest growing communities in the west, and because it’s seeing such rapid growth, it has been getting a lot more attention from home buyers looking for an urban area with rural charm. This growth also means an influx in amenities like stores, restaurants, and other businesses.
It’s a fast growing region due to the tech industry bringing more businesses to the state. Homes for sale in St George Utah make up nearly three-quarters of the housing market here and it can sometimes be just as competitive as technology companies. The area known as Tech Ridge that’s being developed for startup or existing tech companies to grow without the hassle of bigger cities. Zonos is one tech company that has already occupied one of the spaces available there. Three other companies have dedicated themselves to headquartering themselves on the former St. George Airport site. With plans for residential housing, office spaces, and retail space, Tech Ridge is set to bring a lot of industry, jobs, and amenities to St. George.
Home Prices and Rent
In 2021, the median price for a home was $420, 558. And the current average property price stands at $534,646. Most of these are single family homes, and many of them are further away form the center city area with dazzling natural views. There are a lot of investment properties that need renovating, and at current pricing, the 20% construction loan down payment isn’t unreasonable considering that the average cost to flip a property is about $23,000. With rent prices being a little over $2100 for a three bedroom property, that profits investors a 2% cash on cash return.
If you’re Interested in scenic views, glowing mountains and outdoor activity, St. George will not fail to deliver. Much of St. George’s land is protected and will never be developed. So the market here can only hold so much. The St. George Narrows are a fun natural rock formation to explore for the whole family. And due to its proximity to the Mojave Desert, St. George is a lot warmer than the rest of Utah in the fall and winter, and temperature lows rarely dip below freezing.
St. George is a charming community with a lot of natural wonders to explore. There are a lot of amenities and the unemployment rate is relatively low compared to other cites in the state. When considering buying an investment property in this small city, you’ll need a lot of patience and the daring to buy sight unseen at times. It can be a very competitive housing market at times and will require pricing savvy.