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Record Job Count and Major Investments
Strengthen Salt Lake City’s Rental Market
Strong renter demand continues amid easing construction. Salt Lake City will again see above-average net rental absorption in 2025, fueled by an over 2 percent increase in its 20- to 34-year-old population — the fastest among major metros west of Texas. Renters seeking a live-work-play lifestyle are driving leasing activity, particularly employees from Lehi’s burgeoning tech industry. With metrowide Class A rents averaging more than 20 percent below the U.S. mean, luxury rentals are more accessible, boosting demand and intensifying competition among new developments. Roughly 5,500 units are scheduled to finalize in 2025, concentrated in areas including Downtown Salt Lake City-University, South Salt Lake-Murray and West Valley City- Airport Area. The pace of deliveries, however, continues to moderate from the 2023 peak. Although the supply wave pressured occupancy and increased concessions in late 2024, job creation supports improved property performance, boosted by a new urban hospital and the arrival of an NHL team. By late 2025, strong demographic growth and high single-family home costs are expected to set rents and vacancy on dual paths to improvement.