Salt Lake City has always had a knack for surprising people. One minute it’s a laid-back mountain town, the next it’s a fast-growing hub buzzing with cranes, construction crews, and new coffee shops on every corner. In recent years, this transformation has accelerated, and the housing market is right at the center of it. For investors, landlords, and property owners, the conversation around infill ADUs and density is no longer theoretical. It’s happening now, block by block.
At TierOne Real Estate, we live and breathe the Wasatch Front housing market every day. What we’re seeing is a city adapting to growth, embracing new housing types, and opening doors to meaningful income opportunities if you know how to navigate it.
Key takeaways:
- Salt Lake City’s population growth and tech sector growth are reshaping housing demand
- Infill projects and accessory dwelling units (ADUs) are unlocking more housing without sprawl
- Zoning changes and a streamlined approval process are creating new investment paths
- Density brings both opportunity and challenges for existing neighborhoods
- Smart investors can benefit from housing diversity and long-term demand
A Housing Market Under Pressure and Opportunity
Salt Lake City and the broader Salt Lake County have seen remarkable population growth in recent years. New residents continue to arrive from across Utah, Utah County, Washington County, and well beyond, drawn by jobs, lifestyle, and proximity to the outdoors. Tech sector growth has been a major driver, pulling young professionals downtown and into surrounding neighborhoods.
The result? Housing shortages, rising home prices, and intense demand for rentals. Average home values hovering around the mid-$500,000 range have pushed many buyers and renters to look for alternatives. For investors, this pressure creates economic opportunities, particularly in affordable housing solutions that add more units without changing the city’s footprint.
Why Infill Projects Are Reshaping Salt Lake City
Infill projects focus on building within existing neighborhoods rather than expanding outward. Think apartment buildings on underused lots, row houses replacing vacant land, or small-scale developments near downtown and Sugar House. These projects make better use of limited land, existing infrastructure, and transit access.
From an investor’s perspective, infill development means:
- Strong demand from renters who want walkability and access
- Higher long-term property values due to location
- Support from city leaders looking to create more housing
The Salt Lake City Council has been instrumental in pushing zoning changes that allow higher density and mixed-use developments. While the approval process and permit review can still take patience, more projects are being approved than in the past.
Accessory Dwelling Units: Small Homes, Big Impact
Accessory dwelling units, often called ADUs, are one of the most talked-about tools for affordable housing in Salt Lake. A detached ADU, basement apartment, or backyard unit can turn existing properties into income-producing assets without tearing down the main home.
For homeowners and property owners, accessory dwelling units offer:
- Additional rental income
- Increased property values
- A way to support housing diversity in existing neighborhoods
The city has made progress in streamlining the permitting process, ADU design standards, and construction approvals. While navigating zoning and permit review still requires attention to detail, ADUs are becoming more accessible for investors willing to do it right.
Density Without Losing Neighborhood Character
Let’s address the elephant in the room: density makes some residents nervous. Concerns about neighborhood character, parking, and space are real. Longtime residents worry that apartments or infill projects could change the feel of their community.
But thoughtful density doesn’t mean overcrowding. When done well, it supports:
- More housing options for renters and families
- Local businesses and services
- Sustainable growth that protects the surrounding land
Neighborhoods like Sugar House show how density and charm can coexist. Carefully planned developments, smaller units, and attention to infrastructure help ensure that growth supports, not overwhelms, the community.
Housing Types Are Expanding, and That’s a Good Thing
Salt Lake City’s housing future isn’t just single-family homes or massive apartment buildings. We’re seeing a wider mix of housing types: detached homes, apartments, ADUs, row houses, and affordable units designed for different stages of life.
This housing diversity benefits investors by spreading risk and increasing demand. Renters today range from young professionals to downsizing residents, all looking for well-located, well-managed housing. More units mean more flexibility and more resilience in your portfolio.
The Investor Angle: Returns, Demand, and Stability
From an investment standpoint, density and infill development create multiple sources of income. More people moving to the city means consistent rental demand. Limited land means well-located properties tend to hold and grow in value.
Yes, there are challenges. Construction costs, zoning rules, and the approval process can slow projects. But investors who understand the city’s direction and work with experienced partners are well-positioned for long-term success.
At TierOne, we help investors navigate everything from tenant placement to ongoing property management, ensuring that growth translates into stable returns.
FAQ: Infill, ADUs, and Investing in Salt Lake City
Q: Are accessory dwelling units allowed throughout Salt Lake City?
A: ADUs are allowed in many zones, but zoning rules vary. Each property must go through a permit review and meet design and parking requirements.
Q: Do infill projects face more resistance from residents?
A: Sometimes. Community concerns about neighborhood character are common, but many projects are approved when they align with city goals and zoning changes.
Q: Are ADUs considered affordable housing?
A: ADUs can create more affordable units by increasing supply, especially within existing properties where land costs are already absorbed.
Q: How does population growth affect rental demand?
A: More people moving to Salt Lake City and the Wasatch Front increases demand for rentals, especially near downtown and job centers.
Q: Is now a good time to invest in infill developments?
A: Demand remains strong, and the city continues to support density. Investors with a long-term outlook can benefit from current market conditions.
The Road Ahead: Building Smarter, Investing Better
Salt Lake City’s housing story is still being written. Density, infill projects, and accessory dwelling units are not passing trends; they’re responses to real demand, real growth, and a real need for more housing. For investors, landlords, and property owners, the opportunity lies in understanding how these changes fit into the bigger picture.
At TierOne Real Estate, we help clients turn growth into strategy. Whether you own a single property, are considering building a detached ADU, or are exploring larger infill projects, our team is here to support you with local expertise and hands-on management. Explore our services, connect with our team, or schedule a free consultation to make your next investment move a smart one.
