Salt Lake City Rent Growth Trails Nation Amid Supply Glut

Featured Listings

Looking for Off-Market Deals?

We work with a select number of serious buyers through our Off-Market Acquisition System™—a proven process for quietly sourcing 2–50 unit properties directly from long-term owners before they ever hit the MLS, Loopnet, or Crexi.

Utah Market Data - Sold Listings & Price/SqFt

> Multi-Unit (2+ Units)

The number of sold multi-unit listings is down 5.75% YTD going from 174 last year and currently sitting at 164 so far this year. Meanwhile the median sold price per square foot is down 2.37% YTD going from 252 to 246 so far this year.

> Single Family Homes

The number of sold single family home listings is down 2.10% YTD going from 12,690 last year and currently sitting at 12,423 so far this year. Meanwhile the median sold price per square foot is up 1.6% YTD going from 231 to 234 so far this year.

Rates & Financing

> Mortgage Rates as of 5/14/2025

Headlines & Insights

Salt Lake City Rent Growth Trails Nation Amid Supply Glut

A new report from RealPage Market Analytics highlights how markets that already hit peak apartment supply volumes are now diverging in rent performance—with Salt Lake City among those still struggling to recover.

Key insights for Salt Lake City:

• Salt Lake’s supply peaked early and steeply: The market reached a 6.8% inventory growth peak in the second half of 2023—one of the largest nationwide.

• Rent cuts persist: As of April 2025, Salt Lake City was the only major U.S. market still seeing annual rent declines among early-peak metros.

• Western contrast: Like Portland, Salt Lake is still working through its elevated supply, unlike Kansas City and Richmond, which also peaked early but are now seeing 4%+ annual rent growth.

• Outlook: Supply-driven rent pressures may linger unless absorption accelerates, especially with no near-term peak beyond 2023 to help ease inventory pressure.

What this means for Utah investors:
Salt Lake City’s ongoing rent softness reflects the lagging impact of a major supply wave, especially compared to other markets that peaked earlier or had less extreme inventory expansion. Investors should prepare for continued pricing pressure in the short term, especially for newer lease-ups competing for stabilized occupancy.

However, this may also present buying opportunities at favorable pricing for investors with a mid- to long-term horizon. Once supply levels normalize and absorption catches up, rents in this high-demand metro could rebound quickly—particularly for well-located, Class B/C assets that aren’t directly competing with luxury new builds.

Utah Headlines

Fairpark Gets a Spark – Salt Lake City just opened SPARK Apartments, a $99 million affordable housing project with 200 units and on-site childcare. Built on the site of a rundown motel, the new complex is helping revitalize the Fairpark neighborhood. With plans for more development nearby—including a possible MLB stadium—the area is poised for major growth.

Utah Public Land, Limited Fix – The federal government is opening up public land for housing, but only about 1.5 million acres are actually usable—enough for around 700,000 homes. Most of this land is in Mountain West states like Utah and Arizona. Experts warn that without permanent affordability measures and protections against wildfire and drought, the effort could worsen sprawl and cost-of-living issues.

National Headlines

No Rate Cuts Soon – The Fed is unlikely to lower interest rates anytime soon, even after April inflation came in as expected. High tariffs and steady inflation are keeping mortgage rates near 7%, with no major changes on the horizon. While some tariffs have been reduced, the overall economic outlook remains mixed, leaving the Fed in wait-and-see mode.

Yields Dip on Calm News – U.S. Treasury yields dropped slightly as investors reacted to cooler inflation and easing trade tensions. April’s consumer price data came in lower than expected, and recent trade deals have helped ease fears of a slowdown. Investors are now waiting for more economic data later this week to get a clearer picture.

Rents Up, Risks Remain – Multifamily rents rose $5 in April to a national average of $1,736, even as occupancy dropped to its lowest in a decade. Sun Belt cities like Austin and Phoenix saw falling rents due to too much new supply, while Midwest and Northeast markets led the way in growth. With fewer new apartments coming soon, rent growth may bounce back in the next few years.

Renting Now Costs More – Renters now need to earn over $100,000 to afford rent in eight major U.S. cities, double the number from five years ago. Nationwide, the income needed to comfortably rent has jumped from $60K to over $80K, as rents have risen faster than wages. Cities like New York, San Jose, and Boston top the list, while places like Buffalo and Oklahoma City remain more affordable.

Whenever you’re ready, there are a couple of ways I can help you:

1. Skip the MLS, Crexi & Loopnet—Buy Off-Market Multifamily
   We work with a select number of serious buyers through our Off-Market Acquisition System™—a proven process for quietly sourcing 4–50 unit properties directly from owners before they ever hit the open market.

2. Sell Your Multi-Unit Property for Top Dollar:
   We’ll strategically position your multi-unit property for full market exposure, extract maximum value, and streamline the sales process.