Salt Lake City Multifamily Market
2024 Investment Forecast
Economic Growth Warrants Construction,
Though Near-Term Challenges Apparent
Notable employment gains to drive apartment demand. Among all major metros west of Texas, Salt Lake City’s labor market has expanded at the fastest rate relative to its pre-pandemic point, a trend that continues this year. New job opportunities will aid in-migration and, in turn, demand for apartments amid an increased cost of homeownership. Meanwhile, local population growth is expected to far exceed the national rate over the next five years. Entering 2024, the mean cost of a monthly mortgage payment on a median priced home in the metro was more than double that of the average effective Class A rent. Despite these dynamics warranting new apartment stock, a second consecutive year of supply expansion that ranks among the nation’s fastest creates near-term challenges for existing units. An area potentially susceptible to this hurdle is South Salt Lake-Murray. Apartment supply here is expected to expand roughly 10 percent this year, following upward luxury vacancy momentum in the later half of 2023. Conversely, Class A vacancy in the West Valley City-Airport Area shifted down entering 2024, indicating the submarket may be well equipped to handle an even larger increase to local stock than the aforementioned area this year.