Salt Lake City Multifamily Report – April 2024
Performance has slowed, on par with the wider multifamily market.
Ongoing economic headwinds have had an impact on Salt Lake City’s multifamily fundamentals, but the metro is keeping its head above water. Salt Lake City rents were down 0.4 percent on a trailing three-month basis through February, to $1,547, while the U.S. rate slid 0.1 percent during the same time frame. The metro’s average overall occupancy rate in stabilized properties stood at 94.4 percent as of January, a 70-basis-point decrease year-over-year. Both the Lifestyle and Renter-by-Necessity segments saw rates decline.
Employment in the metro expanded by 2.2 percent in the 12 months ending in December, 20 basis points above the U.S. rate, with 22,600 net jobs added. Education and health services added 9,700 jobs, while the information sector registered the highest improvement in year-over-year growth, with a 5.8 percent expansion or 2,500 jobs. Salt Lake City’s west side is set for a reinvention, as LHM is planning to invest $3.5 billion in the Power District, bringing a new stadium and mixed-use community to the area.
As of February, developers had 12,260 units underway across the metro, with an additional 48,000 units in the planning and prospective stages. As of February, 1,337 completed units were added to the existing inventory. Investment totaled $192 million in 2023, a far cry from the decade-high $1.2 billion in deals completed in the previous year.
