Posted in Salt Lake City Market | Posted on 04-25-2013 | Written by Metrostudy News
(Salt Lake City, UT – April 25, 2013) The Greater Salt Lake market continues to experience positive growth in the local economy and housing market, and is projected to remain strong throughout the year. This is according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
According to the revised numbers released by the Bureau of Labor Statistics (BLS), the Greater Salt Lake market added 41,900 new jobs annually to the market as of March, 44,000 new jobs – which is a 4.3% growth rate, one of the highest in the nation. The BLS revised their employment numbers back to 2006, which have resulted in much stronger and consistent job growth, when compared to the previous numbers. The total number of people employed in the Greater Salt Lake market has now surpassed the highest level recorded, back in December 2007, by 2,300 people. As of March 2013, the unemployment rate sits at 5.3%, down from 6.0% recorded at this time last year. While the national unemployment rate also continues to decrease, the rate remains above healthy levels at 7.6%. “The Leisure & Hospitality sector took the lead in job growth with the addition of 8,300 new jobs in the past year. While this sector has not traditionally produced a lot of high paying jobs, it does signal that consumers are spending time and money in the travel,” said Eric Allen, regional director of Metrostudy’s Utah/Idaho Region.
According to Metrostudy’s quarterly survey of all new home projects in the Greater Salt Lake market, there were 1,659 new home started during the first quarter of 2013. This is a +34% increase over 1Q12, however down -4% from last quarter. Annually, builders have started 7,262 homes, which is a +54% increase compared to the annual pace of 1Q12. “The annual pace also increased +6% compared to last quarter. The consistent increase in new home production demonstrates a strengthening confidence level in both builders and consumers,” said Allen. Quarterly closings totaled 1,761, up +30% compared to last year at this time and +7% from last quarter. Annual new home closings increased +33% compared to last year, for a total of 6,672.
As of the end of March, there were 2,603 new detached single family homes in inventory throughout the Greater Salt Lake market, up +30% from last year. Despite the increase, new home inventory rests on the low end of equilibrium at 6.3 months. The increase has come from homes under construction, which is up +53% over last year, which is currently a 4.8 month supply. “With closings increasing at such a rapid pace, it has left the market in short supply of available homes,” said Allen. Finished vacant home inventory is at the lowest level recorded since Metrostudy entered the market in 2001. Total finished vacant home inventory is down -15% from last year, and another -9% from last quarter. Based on current absorption, this is only a 1.1 month supply. Total inventory for attached homes is nearly unchanged compared to last year, and is down only -.5% from last quarter. Currently, this is a 14.8 month supply, down 4.2 months from last year. Conversely, under construction inventory increased +24% over last year, and has a 9.5 month supply.
Vacant developed lot inventory for detached homes in the Greater Salt Lake market is down -14% from last year, and at the current pace of absorption translates to a 36.6 month supply, which is down from 63.6 months recorded at this time last year. While the overall lot supply appears to be above equilibrium, the market is experiencing a shortage in many “A”, “B”, and some “C” locations. Attached lot inventory is also declining, down -14% from last year, which is a 25.3 month supply based on the current absorption pace. There have been 3,858 new lots delivered to the market over the past year, while builders have absorbed 7,262 in the same time period.
For information contact:
eric allen @ 801.571.7700 x424
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com.
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Hanley Wood, LLC is the premier media, event, information and strategic marketing services company serving the residential, commercial design and construction industries. Through its operating platforms, the company produces award-winning digital and print publications, Newsletters, websites, marquee trade shows and events, Market Intelligence data and strategic marketing solutions. The company also is North America’s leading publisher of home plans.