Salt Lake City Multifamily Report – October 2023
Deliveries dented both occupancy and rent gains in the short term.
Salt Lake City rent evolution, click to enlarge
Despite some snags, the Salt Lake City multifamily market remained resilient to overall economic turmoil. Rents continued to appreciate, rising 0.2 percent on a trailing three-month basis through August, to $1,592, but remained significantly below the $1,728 U.S. average. Year-over-year, rent movement remained negative, however, at -0.6 percent. Robust supply dented occupancy, which was down 140 basis points in the 12 months ending in July, to 94.8 percent, and is bound to continue facing an uphill battle in the short term.
Salt Lake City sales volume and number of properties sold, click to enlarge
In the 12 months ending in June, Salt Lake City employment expanded 3.0 percent, or 51,300 jobs, while the U.S. rate hit 2.8 percent. Two sectors lost 1,600 jobs combined—trade, transportation and utilities and financial activities—while leisure and hospitality (16,200 jobs) and education and health services (11,300) led job gains. Unemployment was among the lowest in the country, at 2.7 percent in July, ahead of the 3.5 percent national figure but trailing the 2.4 percent state rate.
Salt Lake City. Photo by Erich Sacco/iStockphoto.com
Notably, the metro’s unemployment rate has been below 3.0 percent for more than two years. Developers delivered 2,076 units in 2023 through August and had a robust pipeline of projects under construction (20,549 units). Yardi Matrix forecasts a record for deliveries by year-end, which could outbalance demand. Transaction activity remained tepid, with just $115 million in multifamily assets trading in 2023 through August, for a price per unit that decreased to $210,789.
