Comparable Market to SLC

Part
01
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Part
01

Comparable Market to SLC - SLC Market Analysis

According to some recent reports, Salt Lake City has a population of 200,544 people. In addition, construction in the area is driven by the increased economy, demand for collaborative and co-working office spaces, and lack of housing. The service industry in Salt Lake employs the most people in comparison to other industries.

SALT LAKE CITY POPULATION

  • According to the most recent census, in 2017, Salt Lake City had a population of 200,544 people.
  • In 2018, the estimated population in Salt Lake is 200,591.
  • The Salt Lake metropolitan area has an estimated 1.14 million people.
  • The Larger Salt Lake-Orem-Provo area combined has an estimated population of 2.4 million people.
  • Salt Lake proper accounts for 6.75% of the Utah population and 18% of Salt Lake County's population with a population density of 1,689 people per square mile.

CONSTRUCTION BOOM

  • In 2018, Salt Lake City built three times the national average houses and apartments.
  • Between 2017 and 2018, the number of housing units in Utah increased by 2.2% with a total of 23,897 units, with 6,497 of the new units being in Salt Lake City.
  • The overall goal of the construction boom is to relieve the housing crisis since the recession. According to a survey, between 2011 and 2018, the average vacancy rate of apartments in the Salt Lake City area is 3%, or essentially full.
  • In terms of commercial construction, the Salt Lake City area has increased building of office spaces meant for collaborative use in order to meet the high demand of the city's economy.
  • In addition, large companies, including Amazon, UPS and local colleges, have been expanding manufacturing spaces as well.
  • In May 2019, the overall spending for all types of construction in Salt Lake was $156.65 million.
  • Across Utah, the most multifamily construction permits in the first quarter of 2019 were issued in Salt Lake City and apartment construction was the driving factor behind that. In total, 578 such construction permits were issued in the city (577 were for apartments).
  • There were 585 "new dwelling units" being constructed in the city during the first quarter of 2019. The valuation for new residential construction in Salt Lake City during that time period was $80,050,500, while the valuation for new non-residential construction was $36,680,800.

SERVICE INDUSTRY

  • In Salt Lake City, the service industry supplies the most jobs.
  • Salt Lake experienced .3% growth in employment for the trade, transportation, and utilities sector, 3.5% growth in the professional and business services sector, 1.9% growth in the education and health services sector, and 6.4% growth in the leisure and hospitality sector.
  • According to the 2019 Area Economic Summary, there were 143,900 employees in the trade, transportation, and utilities sector, 128,900 employees in the professional and business services sector, 86,500 employees in the education and health services sector, and 66,400 employees in the leisure and hospitality sector.
Part
02
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Part
02

Comparable Market to SLC - Similar Markets

Three U.S. cities that have a population, construction boom, and service industry that are comparable to Salt lake City, Utah, are Fort Lauderdale, Florida, McKinney, Texas, and Ontario, California.

Findings

1. Fort Lauderdale, Florida

  • Fort Lauderdale's population is 177,175, which is comparable to Salt Lake City's population of 200,544.
  • Fort Lauderdale's construction boom is similar to that of Salt Lake City because it was listed as a city "building the most" in 2018 based on U.S. Census Bureau data.
  • A second reason why its construction boom is comparable is because in 2018, 339 permits were issued in Fort Lauderdale for unit construction.
  • Fort Lauderdale's construction boom is similar to that of Salt Lake City due to its extensive increase in residential construction. The number of residential units added in Fort Lauderdale in 2018 exceeded 1,000 and thus far into 2019, 3,000 more have become available "with more underway."
  • The construction of apartment units in Fort Lauderdale is also booming, as it is in Salt Lake City. For example, in Fort Lauderdale, a 20-story building is in the works which will yield hundreds more apartments.
  • Salt Lake City's service industry has the greatest level of employment of any industry. Similarly, Fort Lauderdale service industry is also very strong, as its top-three industries are all service-based.
  • The top industry in Fort Lauderdale for employment is food services and accommodation, which employs 10,509 individuals.
  • The industry that employs the second-most people in Fort Lauderdale is retail trade (10,336 individuals).
  • The industry with the third-highest employment in Fort Lauderdale is also service-based (social assistance and health care), which employs 9,243 individuals.

2. McKinney, Texas

  • McKinney's estimated population, as of February 2019, was 187,802. That population figure is comparable to Salt Lake City's population of 200,544.
  • McKinney's construction boom is similar to that of Salt Lake City because it's experiencing such across its residential and commercial properties. According to Dallas News, "companies and new residents [are] moving in droves" to McKinney and a few other towns in Texas.
  • With regard to residential construction in McKinney, the number of units under construction amounts to 3,200 across 13 complexes for apartments. As Forbes stated, there are "swaths of newly constructed housing" in McKinney.
  • That residential construction can be explained by the fact that the population in McKinney increased 7% in 2018 compared to 2017.
  • With regard to commercial construction, approximately "50 shopping centers . . . are in some stage of development in McKinney."
  • McKinney's service industry is very strong, as its top two industries are service-based.
  • The industry with the most employment in McKinney is social assistance and health care, which employees 10,019 individuals.
  • The industry with the second-most employment in McKinney is retail trade, which employs 9,951.

3. Ontario, California

  • Ontario, California's population is listed at 180,583, which is comparable to Salt Lake City's population of 200,544.
  • Ontario's construction boom is similar to that of Salt Lake City because $6.6 billion worth of construction commenced in the Ontario/Riverside/San Bernardino, California region in 2018.
  • That construction boom marked a 17% increase from the prior year.
  • Permits were issued in 2018 for the construction of nearly "7,000 single-family homes and multi-family housing units in San Bernardino County, with the Chino-Ontario area being a construction hot spot . . . ."
  • The service industry in Ontario, California is very strong, as two of its top-three industries are service-based.
  • Retail trade is the top industry for employment in Ontario California, as 9,871 individuals work in that service-based industry.
  • Ontario's industry with the third-greatest employment is social assistance and healthcare, as that service-based industry employs 8,315 individuals.

Your research team applied the following strategy:

We began our research by reviewing this report pertaining to Salt Lake City's population, construction boom, and service industry. After doing so, we identified the above three cities as ones that have a population, construction boom, and service industry comparable to Salt Lake City by first consulting lists of city populations in Florida, California, and Texas. Within those lists, we looked for cities/towns that have a population around 200,000 because Salt Lake City's population is 200,544. Once we found cities/towns that were close to that figure, we then looked up whether those areas are currently experiencing a construction boom. If they are not, we did not include them, which occurred in a few instances. If they are, we then proceeded to check on the state of their service industries. Our benchmark for assessing the strength of their service industries was the fact that the highest employment in Salt Lake City is within the service industry. Based on that, we ensured that each of the cities/towns we included have a comparably strong service industry based on employment statistics for those areas.
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