Salt Lake City Prepped for More Growth
- Jan 11, 2019
Backed by a strong economy and rapidly expanding population, Salt Lake City’s multifamily market continues to gain steam. Record-high deliveries over the past three years have not slowed down construction, with 2018 poised to mark a new cycle high. Demand is still outpacing supply, and at 96.0 percent, occupancy in stabilized properties remains above the national average.
Employment growth continues to be strong, with gains across most sectors. Salt Lake City added 38,800 jobs year-over-year through September, a 3.1 percent uptick. Trade, transportation and utilities led growth by far, with the addition of 11,600 jobs. The $3.6 billion Salt Lake City International Airport redesign is underway, with the opening of its first phase scheduled for 2020. Utah Transit Authority also broke ground on its new bus operation, maintenance and administration facility. Moreover, an $87 million bond that the metro’s residents approved by vote in the November midterm elections will be used to repair Salt Lake City’s aging road network.
Core areas have been undergoing a rejuvenation process over the past few years, keeping rents and demand for new multifamily product high. Approximately 8,200 units were underway across the metro as of October, with most of the new developments dedicated to the Lifestyle segment.