Salt Lake City, UT

Market Update

Salt Lake City has experienced a notable population increase, with the current population reaching approximately 1.3 million, reflecting a year-over-year growth rate of 2.59%. This upward trend follows a steady rise from about 1.26 million in 2021 to the current figure. The region has also seen a net migration of nearly 19,665 residents, contributing to the demand for housing. The median household income stands at $100,548, while the unemployment rate is relatively low at 4%. With 34.6% of the population renting, these demographic factors are key drivers of housing demand in the area.

In the multifamily sector, the median gross rent is reported at $1,659, with year-over-year rent growth at 0.8%. The HUD Fair Market Rents for a two-bedroom unit are benchmarked at $1,771, indicating that actual rents are slightly below this subsidy threshold. The modest growth in rents, coupled with a relatively high median gross rent, suggests ongoing affordability challenges for renters in the market. The asking rents for various unit types, including $1,453 for one-bedroom and $2,350 for three-bedroom units, further illustrate the pricing dynamics within the multifamily landscape.

Capital markets for Salt Lake City show multifamily cap rates at 5.49%, which is approximately 155 basis points tighter than the national median of 7.04%. Over the trailing 24 months, there have been 53 transactions totaling about $82.4 million, with a median price per unit of $299,250, significantly above the national median of $199,975. This pricing indicates strong investor interest in the market, despite the modest rent growth. CBRE Research reports that the multifamily sector remains resilient, suggesting continued investor confidence amid broader economic conditions.