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Market Report

Salt Lake City Multifamily Market Report

2025 Investment Forecast

Young Workforce Growth and Major
Investments Strengthen Salt Lake City’s Rental Market

Rental demand rising amid easing construction activity. Salt Lake City continues to see elevated rental demand in 2025, fueled by an over 2.0 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. Despite local Class A rents that are on average more than 20 percent below the U.S. mean, the influx of new units has intensified competition. A decade-high number of units offered concessions in late 2024. While development levels remain elevated this year, total supply additions will hold below the 2019 peak, as construction eases amid market saturation concerns. Over 5,000 units are slated for 2025, set to expand inventory by about 5.7 percent. Concurrently, home values have surged by over 33 percent in the past four years, exacerbating affordability issues and keeping potential buyers in the rental market. These dynamics bode well for the mid- to long-term performance, aligning with Salt Lake City’s strong economic outlook.
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