Salt Lake City Multifamily Market Report
2024 Investment Forecast
Growth Prospects Warrant Continued Supply Wave,
Though Near-Term Pressures Remain
Dynamic employment environment bolsters housing demand. Salt Lake City boasts the fastest-growing labor market west of Texas, a trend that will continue to hold true this year. An expanding manufacturing and logistics sector is spearheaded by New Balance, IDF and Frito-Lay’s growing presence in Salt Lake City proper. New job opportunities are, in turn, aiding demand for apartments, given an increased cost of homeownership as local population growth far exceeds the national rate over the next five years. Entering 2024, the average monthly cost of a mortgage payment on a median-priced home in Salt Lake City was more than double that of the metro’s mean effective Class A rent. Although these dynamics warrant an influx of new apartment stock, a second consecutive year of inventory growth that ranks among the nation’s fastest places near-term challenges on vacancy. The South Salt Lake-Murray area may be more susceptible to this hurdle as local supply is anticipated to expand by roughly 10 percent while annual absorption has cooled. This trend is consistent across the market, impacting luxury and mid-tier units more dramatically. The Class C segment is likely to be more isolated from this dynamic, however, as some renters button up their budgets amid slowed overall economic growth.