Salt Lake City Multifamily Market Report

Rent concessions attract young professional renters. Despite restrained household formation on a national scale last year , Salt Lake City has continued to note elevated rental demand. A net of 7,800 units were absorbed over the year ended in March, nearly matching the metro’s record from 2021. Comparatively low rents for Class A properties have been key in supporting this trend. The average effective Class A rent was 22 percent below the U.S. level in March, the widest gap since 2019. The share of local units offering concessions also grew to a decade-high of 36 percent. These dynamics are aiding net in-migration, which will pick up by about 60 percent this year, and is expected to push net absorption to a new all-time high. Much of this demand will continue to come from younger renters. The local 20- to 34-year-old populace jumped 1.6 percent over the last 12 months, the fastest pace among any major metro west of Texas.