Want to purchase a rental investment property in Park City? Check out part 3 of our analysis below highlighting The Canyons. Looking for part 1 on Old Town Park City? Click here! Looking for part 2 on Deer Valley? Click here!
Part 3: Canyons Village: A Transforming Investment Hub in Park City
Over the past five years, Canyons Village has emerged as a key investment area in Park City, thanks in large part to the introduction of the Epic Pass and the expansion of lift connections between Canyons and Park City Mountain Resort. Locals refer to this as the “Vail Effect,” recognizing how Vail’s influence has drastically increased demand for the area. The ability for skiers to move seamlessly between the two resorts has broadened the appeal for both visitors and property owners, opening up more opportunities to stay and ski across multiple resort areas.
Vail has significantly enhanced the infrastructure, not just for skiing, but also for the commercial spaces at both Park City Mountain and Canyons Village. They’ve revitalized the ski terrain and updated the shopping, dining, and nightlife options, making these areas even more attractive. Additionally, Vail’s global marketing efforts have increased awareness of Park City as a premier ski destination, drawing new and existing Epic Pass holders from across North America, including major markets in California, Nevada, Colorado, Canada, and the Northeast.
A Variety of Properties Across Generations
This surge in popularity has led to new hotel chains and developers investing in lodging options to accommodate the increased demand, especially in the Canyons Village area. As a result of the development over many years, the area now offers a range of properties that span multiple generations of development. The oldest properties are located in the lower base area, with developments like Red Pine and Hidden Creek dating back to the late ’80s and early ’90s. The second generation of properties, such as Juniper Landing, Fairway Springs, and Blackstone, were built on mid-mountain sites.
At the base of the Gondola, several condo-hotels, including Sundial, Grand Summit, Westgate, and Hyatt Centric, offer ski-in / ski-out access. These properties are generally located closer to the lift, offering greater convenience for skiers compared to townhomes and condos further away, which may require a short walk to the lifts. More recently, new developments post-Vail acquisition, including Lift, Apex Pendry, and others, have added modern, high-end units to the mix.
The increased supply of lodging options has somewhat balanced the demand. However, the key to success in this competitive market is how properties are utilized and designed. In Canyons Village, buyers must pay attention to property layouts and the potential for maximizing rental income, especially with varying square footage and room configurations.
Maximizing Revenue Through Smart Property Design
When evaluating investment potential, it’s important to understand that newer properties often have higher price points, ranging from $1,100 to $2,700 per square foot. However, older properties like Red Pine may sell for less, even if they’ve been remodeled. While newer properties may have higher occupancy rates during peak seasons, the real key to consistent, year-round revenue is how each property is laid out.
Vertical floor plans, for example, may have smaller bedrooms that limit the number of people who can stay in each room. In contrast, properties with more flexible bedding configurations—such as rooms that accommodate bunk beds, pull-out sofas, and various bed sizes—are more likely to attract a wider range of guests. A property with versatile bedding options will perform better across both peak and off-peak seasons, ensuring long-term viability and profitability as an investment.
Off-Season Viability and Amenities
Another advantage of Canyons Village properties, both old and new, is their access to amenities that cater to off-season guests. Many developments feature pools, clubhouses, fitness centers, and other common spaces that attract visitors during the summer and shoulder seasons. When comparing rental viability, it’s important to assess how a property performs during the off-season, especially if you plan to use the property during ski season and rent it the rest of the year.
The addition of the Canyons Regional Shuttle App has further improved accessibility for those staying in lower base area properties, which may seem distant from the gondola. The shuttle app, which uses a QR code to provide easy access to rotating shuttle services around the village, offers a practical solution for those seeking more affordable lodging options without sacrificing convenience. This service provides an excellent compromise for guests looking for budget-friendly alternatives to expensive ski-in/ski-out properties.
Older Properties Can Still Be Competitive
While newer developments at Canyons Village have drawn recent attention, it’s worth considering the potential of older properties as well. Many older units in Canyons offer competitive pricing and surprisingly strong rental performance, particularly when factoring in lower fixed overhead costs, like HOA fees. These properties may provide great value, especially if they’ve been updated to match current trends and guest expectations.
When considering new construction, keep in mind the higher fixed costs associated with newer properties. These costs may affect your overall income potential during off-peak periods when demand is lower. It’s important to understand how each property will perform throughout the year and ensure it can attract guests consistently, even in slower seasons.
In conclusion, Canyons Village has evolved into a dynamic and attractive area for property investment, with a variety of property types and configurations available. Whether you choose a newer, high-end unit or a classic, well-located condo, success in this market depends on how well you maximize the potential of your property through smart design, management, and understanding of the seasonal dynamics.
All Park City Neighborhoods Summary: The Importance of a Boutique Management Company
Finally, selecting the right property management company is critical to your success. A boutique management company, rather than a large corporation, can offer more personalized services that address the specific nuances of whichever of the three neighborhoods you choose. They can help monitor market trends, adjust pricing accordingly, and fine-tune marketing strategies to ensure your property remains relevant and attractive to guests, year after year.
Positive reviews and consistent bookings in the first year are essential for generating momentum and increasing revenue in subsequent years. A knowledgeable management team will be key to keeping your property competitive in the marketplace, ensuring long-term success as an investment.
Looking for a property manager to support your rental investment property in Park City? Check out our free rental evaluation to get an estimate of the income you could earn!
