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Real Estate Growth in Vernal

Submitted by sarah on Fri, 12/19/2008 - 11:15

Despite current national trends in the real estate market, Vernal is seeing tremendous growth in Real Estate. Here are some of the main reasons why:

Severe shortage of rental properties - Vernal has very few apartment communities therefore the market is very underserved by apartments. Enterprising investors are filling this need by purchasing individual condos and town homes to lease. These investors are generally seeing average rents for a 3 bedroom 2 bath condo of $1500 to $1800. Prices to acquire condos or town homes range from $150,000 to $180,000. This is resulting in cash flows of $400 to $600 plus per property.

Few apartments being built - The local municipalities have made the approval process for approving new apartments much more difficult. Also due to more stringent standards in the lending industry there are fewer projects being funded. The condo and townhome projects that have been approved and funded have thrived.

Higher than average incomes - The higher than national average incomes that the Vernal job market is creating is providing ready and willing renters who want to live here. See http://jobs.utah.gov/opencms/wi

New to the job Workforce - The push to recruit new workers to the Vernal area is creating many would be home buyers with little time on the job. These new workers need a place to rent for the first 6 to 18 months on the job until they can qualify for a home of their own.

Area Information Links:

Vernal Area Chamber of Commerce- http://www.vernalchamber.com
Department of Workforce Services- http://jobs.utah.gov/opencms/wi
Utah Association of Realtors- http://www.utahrealtors.com

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