Scroll Down
Institutions Seeing Promise in Newer Assets in Silicon Slopes and Downtown
Suburbs lead core in vacancy compression. Last year, vacancy declined more in suburban submarkets, with reductions of over 100 basis points in some cases. Areas already performing well, such as Sandy-Draper and the southwestern communities, including Tooele, should see further improvements this year. In Downtown, the openings of the Astra, Luma, and Worthington apartments have collectively added over 900 luxury units since 2024, which were still not fully leased as of last December. This contributed to the highest prevalence of concessions in the Wasatch Front, ending last year at 50 percent. Fortunately, the 2026 delivery slate there will be 40 percent smaller, with weaker supply growth in the metro as a whole. The market’s projected population growth rate, exceeding 1 percent annually over the next five years, will help to absorb surplus units. Vacancy rates should decline for a third successive year, though more modestly than in 2025, remaining the second-lowest metric among major Southwest markets.