Salt Lake City Multifamily Market Report
Bright Employment and Demographic Outlooks Underpin Demand for Apartments
Job and population gains producing rental need. A highly skilled labor force and a lower cost of living compared with larger coastal cities are luring businesses and workers to the metro. Growth in the logistics, tech and life sciences is contributing to rising employment. Job availability helped to grow the metro’s population by over 37,700 people last year, an expansion of 1.5 percent or three times the national rate. Growth in the prime renter cohort, those between the ages of 20 to 34, advanced at an even faster pace. The increased need for housing amid a median home price that soared nearly 14 percent last year bodes well for the multifamily market. The inventory of for-sale homes is also below buyer demand, keeping many potential homeowners in rentals longer. These demand factors and marketwide vacancy in the 4 percent range support elevated apartment construction.