Salt Lake City Multifamily Report – Summer 2019
The metro's multifamily market continues to be strong, supported by job and population gains. Rents increased 3.0 percent year-over-year through May, 50 basis points above the U.S. growth rate.
Salt Lake City rent evolution, click to enlarge
Despite recent inventory expansion, which brought 20,000 units online since 2015, the metro’s multifamily market continues to be strong, backed by job and population gains. However, only 745 units were delivered during the first five months of 2019, keeping rent growth and occupancy above averages.
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Salt Lake City ranked among the top metros in job creation, with the addition of 34,100 positions across most sectors for a 2.6 percent expansion. Leisure and hospitality led growth with 7,300 jobs. Utah’s ski resorts attracted a record 5.1 million visitors during the last winter season, many of them choosing to fly in through Salt Lake City International Airport, which is undergoing a $3.6 billion redevelopment. Furthermore, the Federal Aviation Administration also awarded roughly $19 million in infrastructure grants for three other airports in Utah. Tourism is expected to be impacted by the closing of the Salt Lake Temple and the Temple Square until 2024—which draw as many as 5 million visitors annually—due to major renovations.
Salt Lake City sales volume and number of properties sold, click to enlarge
Meeting demand for temporary jobs in the hospitality sector presented some difficulties, not only from a general labor shortage perspective but also because of the limited living and co-living options in the resort area. More than 7,900 units were underway in the metro as of May, but because of high demand, we expect rents to increase by 4.6 percent in 2019.
