With Salt Lake City’s population increasing at a robust pace, multifamily continues to be the preferred investment vehicle over all other asset types. Rents in the metro advanced 3.4 percent year-over-year through November and occupancy in stabilized properties moved up 20 basis points in the 12 months ending in October to 96.1 percent.
The metro gained 34,700 jobs in the 12 months ending in September, with a lofty number of gains in high-paying sectors. Salt Lake City’s thriving tech sector is driving a great part of its economic growth. Development is mostly occurring in the metro’s urban core, with several large mixed-use projects underway or planned for downtown. The Exchange is a two-building development taking shape where the former Barnes Bank building and Salt Lake Roasting Co. once stood. Additionally, an entire neighborhood is set to rise south of Pioneer Park. Developers are planning a combination of adaptive reuse and new buildings on nearly 13 acres. Meanwhile, the Utah Department of Transportation is spending $450 million on improving a portion of Interstate 15, and construction on the first phase of Salt Lake City’s new $3.6 billion airport is expected to wrap up in fall 2020.
More than 11,700 units were underway in the metro as of November and with demand still healthy, we expect Salt Lake City rent growth to hold steady through 2020.