Rents Tread Water, Economy Still Stellar
Despite some snags, the Salt Lake City multifamily market remained resilient to overall economic turmoil. Rents continued to appreciate, rising 0.2% on a trailing three-month basis through August, to $1,592, but remained significantly below the $1,728 U.S. average. Year-over-year, rent movement remained negative, however, at -0.6%. Robust supply dented occupancy, which was down 140 basis points in the 12 months ending in July, to 94.8%, and is bound to continue facing an uphill battle in the short term.
In the 12 months ending in June, Salt Lake City employment expanded 3.0%, or 51,300 jobs, while the U.S. rate hit 2.8%. Two sectors lost 1,600 jobs combined—trade, transportation and utilities and financial activities—while leisure and hospitality (16,200 jobs) and education and health services (11,300) led job gains. Unemployment was among the lowest in the country, at 2.7% in July, ahead of the 3.5% national figure but trailing the 2.4% state rate. Notably, the metro’s unemployment rate has been below 3.0% for more than two years.
Developers delivered 2,076 units in 2023 through August and had a robust pipeline of projects under construction (20,549 units). Yardi Matrix forecasts a record for deliveries by year-end, which could outbalance demand. Transaction activity remained tepid, with just $115 million in multifamily assets trading in 2023 through August, for a price per unit that decreased to $210,789.
Read the full Matrix Multifamily Salt Lake City Report-October 2023
Add Comment