Salt Lake City Multifamily Market
Record Supply Wave is Lifting Vacancy;
Future Growth Prospects Provide Long-Term Optimism
In-migration warrants sharp uptick in development. Salt Lake City’s outdoor amenities, growing economy and its relative affordability compared to other major West Coast markets have been strong drivers for in-migration. The metro has gained more than 115,000 new residents since the end of 2019, which is spurring the largest supply wave on record. During this span, apartment inventory increased by roughly 10 percent, and the influx of new supply has placed upward pressure on vacancy. Entering the third quarter of 2023, the rate was at 5.7 percent, marking a 13-year high. With nearly 14,900 units currently underway as of August, it is expected that metrowide vacancy will remain elevated in the near- to mid-term. However, there are still tailwinds at play that are expected to benefit local apartment performance in the longer run.