Salt Lake City Multifamily Report – Summer 2020
While multifamily rent growth took a hit, transaction activity grew when compared to 2019 volumes.
Salt Lake City rent evolution, click to enlarge
Backed by a long-running economic and demographic expansion, the Salt Lake City multifamily market had a late-cycle growth spurt. The coronavirus crisis may have threatened to inhibit the metro’s progress, but the Wasatch Front has taken the hit fairly well compared to most major U.S. metros. Rent gains contracted by 0.2 percent on a trailing three-month basis as of May, on par with the national growth rate.
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The downtown area remains a magnet for both investors and developers. Several large transit-oriented projects are underway including Giv Development and Domain Cos.’ $124 million The Exchange and Ritchie Group’s Block 67, adjacent to Vivint Smart Home Arena. Salt Lake County allowed construction to continue during the statewide stay-at-home order, putting the $4.1 billion expansion of Salt Lake City International Airport ahead of schedule.
Salt Lake City sales volume and number of properties sold, click to enlarge
Multifamily sales surpassed $407 million in the first five months of the year—a visible increase from 2019. Meanwhile, developers brought 1,682 units online. The metro’s robust economy, less severe coronavirus-induced lockdown and rather low number of COVID-19 infections will likely contribute to its quick recovery from the pandemic, according to a Moody’s Analytics report.
