Strong Supply Stalls Rent Gains
Salt Lake City’s strong employment growth sustained demand at the start of 2025. Still, due to record supply volume, average advertised asking rents took a hit, according to the latest Yardi Matrix Salt Lake City multifamily market report. The average rate was down 0.3% on a trailing three-month basis, also sliding 1.2% year-over-year, to $1,538 in February. Robust supply also impacted occupancy in stabilized properties, but to a lesser degree. The figure was down 40 basis points year-over-year, to 94.1% as of February. Job growth stood at 2.5% in metro Salt Lake City as of December 2024, nearly double the 1.3% U.S. average and leading all top 30 Yardi Matrix metros, as noted in the most recent national multifamily market report.
Meanwhile, area unemployment remained tight at 3.2% as of January, on par with the state and below the 4.0% national average. Education and health services (14,500 jobs) and government (7,800 jobs) led employment gains, while trade, transportation and utilities was the only sector to shed positions (down 4,300 jobs). Construction continues on the 700-acre mixed-use Utah City in Vineyard, while the University of Utah is set to break ground this summer on a new hospital and medical campus in West Valley City, with completion slated for 2029.
Development remained robust, with 1,226 units coming online in 2025 through February and an additional 19,639 apartments underway. Meanwhile, sales totaled $444 million in 2024, above 2023’s volume but otherwise behind every other year in the past decade.
Read the full Matrix Multifamily Salt Lake City Report: April 2025
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