Why is Park City Utah So Expensive?
For homebuyers from some parts of the country, the real estate prices in Park City, Utah, can be eye-watering. It’s not unusual to find showcase estates worth tens of millions and one-person condos can still be half a million or more.
Given that the average price for a new, detached home in the United States was $408,800 in 2021 and Zillow estimates the average price as an even more affordable $293,349, seeing multi-million dollar homes can raise some questions.
Why Is Park City So Expensive?
All those Park City expensive homes have high price tags for a reason. The simplest reason, quite simply, is that buyers are willing to pay a premium to live here and are happy to pay current costs. If they didn’t, prices would decline. Here are the reasons that keep Park City expensive:
Demand. People simply want to live in Park City, and they are willing to pay to do that. With great schools, a high standard of living, lots of options for outdoor recreation, and other benefits, it’s an attractive place to spend time, either as a full-time or seasonal resident.
Supply. The other side of the equation is that while lots of people want to live in Park City, there isn’t a lot of new development. There are protected areas and since the town is small, there is only so much physical space to support new buildings, and this scarcity also drives up prices.
Celebrities. For many years, Park City has attracted a glamorous crowd, drawn here by terrific skiing, the Sundance Film Festival, and the mountain views. Billionaires and celebrities who come here tend to build large estates with plenty of privacy and luxury amenities, such as home theater systems, on-site spas, and other perks. Not surprisingly, when these homes are put on the market, they attract a premium price.
High net worth individuals. The average household income in Park City is higher than the national and state average. With more affluent people in the area willing to pay higher prices and interested in building luxury homes, the overall real estate market comes with higher prices.
Location. Park City offers some of the best skiing in the country, with the winter Olympics being hosted here in the past and Olympians still training nearby. There are many recreation opportunities here that are unique to Park City. Where else can you ski in and out of a home, eat where royalty has dined, go on horse-drawn carriage rides, and see tons of wildlife? Where else can you breathe in the mountain air or go swimming in a mountain-fed stream? You simply can’t get this sort of access to top skiing, trophy fishing, and other perks in other cities, and this uniqueness drives up prices.
Opportunity. Park City sees about 600,000 tourists each year, and this can mean big opportunities. Starting a business here gives you access to a great market and if you buy a second home in Park City, you can make money by renting it to tourists part of the time. The real estate market itself is promising, too, with home prices rising steadily. Buying here is a good investment.
All these factors explain why Park City is expensive, but they also suggest larger up-front costs are not the whole story. If you decide to rent or resell a property you buy here, you may be able to defray some costs and even make a profit. When considering whether an area is expensive or not, consider whether you can make money from your purchase and whether your property will appreciate. Also, think about the quality of life. You may pay a premium for Park City homes, but you also get to reside in a place most people dream of living.
Just How Expensive Is It?
As of January 2021, the average home listing price in Park City is $1,750,000, and in-demand neighborhoods within a short distance to the mountains and ski-in/ski-out access can be far more. In January 2022, the exclusive “Monitor’s Rest” estate on White Pine Canyons Road was listed at $42 million. On the other side of the scale, a 338-square foot condo apartment that same month was listed at $394,000.
What About the Cost of Living?
While housing costs are much higher, the cost of utilities, food, healthcare, and other essentials is generally lower. When we take housing out of the equation, the cost of living in Park City is 2.9% lower than the national average. The nearby airports can easily fly in supplies and a thriving economy keeps prices reasonable, relatively speaking.
The desire to appeal to tourists also plays a part. Transportation in Park City is actually less expensive than the rest of Utah, for example, in part because it’s possible to ski places and there are free shuttles and transport options available to many residents and visitors.
Why Is Benloch Ranch a Relatively Affordable Option?
It is possible to buy a reasonably affordable Park City home without scrimping on amenities. At Benloch Ranch, we wanted to create a luxury living experience for people who were passionate about the outdoors and about beauty, but who also wanted to be able to own a primary or secondary home in the area without paying typical prices.
We started by asking “Why is Park City, Utah so expensive?” and after doing the research, we realized there was an opportunity to build uncompromising luxury homes in the area for less. We started by building on 2550 acres minutes outside the city, to give homebuyers all the benefits of access without the higher prices and the congestion of in-city living. We also dedicated ourselves to sustainability and to building off-site, which not only minimizes waste and disruption to the area but also allows us to create higher-quality homes while keeping prices competitive.
The result is affordable Park City homes in Benloch Ranch, which start at $1,029,000 for a 2921 square foot, four-bedroom, four-bathroom home with modern open concept plans, large windows, and plenty of room for indoor and outdoor entertaining. While our detached luxury homes are less than the Park City average and much less than the typical luxury home, we also offer amenities that outshine most communities. Benloch Ranch offers retail stores, shuttle service, glamping, grocery stores, over twenty miles of trails, yurt and backcountry camping, a clubhouse, a convention center, indoor and outdoor storage, concierge, restaurant, winter sports, archery and skeet shooting range, fireside village, spa, skating pond, and more. We’ve quite simply redefined what life in Park City can look like.
If you can see yourself living in Park City and want unparalleled luxury and amenities without the typical price tag, contact Benloch Ranch to find out more about our community.