H1 2023 Utah market update

H1 2023 Utah market update

Even though the construction market in Salt Lake City isn't as vibrant as it was in previous years, it is anticipated to sustain steady growth over the coming years. The city's robust economy is attracting tech companies keen to avoid escalating costs in Silicon Valley, making it a rising contender in the tech industry. Enclosed by the Great Salt Lake and the Wasatch Mountains, Salt Lake City's unique geographic location offers limited land, driving costs upwards as expansion occurs. Nevertheless, the city's allure continues to attract newcomers, with the residential sector representing over half of all construction, a trend projected to persist.

Examining construction market volume, significant growth can be observed over time despite some fluctuations. For instance, the total market increased by 16.7% in 2020, followed by a 1.9% rise in 2021, despite a dip in 2022 and 2023. The residential sector, the city's largest construction contributor, experienced a substantial growth of 28.1% in 2020 and 11.2% in 2021. Despite slight declines in subsequent years, a positive trajectory of 2.5% is predicted for 2024.

The city has seen several notable construction projects which underscore its growth. These include Phase I of The Point, the extensive $3 billion expansion of the Salt Lake City International Airport, and the $1.5 billion expansion and renovation of IM Flash Technologies in Lehi. Furthermore, Fairbourne Station in West Valley City is seeing a $500 million investment, and expansions at Northrop Grumman Rocket Motor Manufacturing Plant in Magna are valued at $451 million. Additional significant projects include the West Valley Health and Community Center Phase I, Geneva Vineyard, MAP Facilities in Magna, and various stages of the Firefly Residential projects in Cedar Valley, all contributing to the city's burgeoning construction market.