Salt Lake City rent evolution, click to enlarge
Salt Lake City continues to be one of the best-performing metros in the country. Due to robust employment and solid demographics, Utah’s largest city is generating demand across all asset classes.
With convenient connectivity and a strong multifamily market, the metro remains appealing to major employers. Job gains are steady, as more than 35,000 positions were added year-over-year through November. Employment is boosted by the myriad new projects underway across the Beehive State. The first redevelopment phase of Salt Lake City International Airport is in the works, with completion scheduled for 2020. WI Commercial Properties’ $200 million mixed-use development is turning land along Interstate 15 into a major tech hub. Meanwhile, the University of Utah has a $50 million Rehabilitation Hospital underway. At the same time, the metro’s economy is growing at such a fast pace that some employers struggle to find highly skilled workers. This rapid growth has raised some concerns regarding labor supply, education and poor air quality.
Salt Lake City’s multifamily market is thriving. The transaction volume hit $421 million last year, while the metro has more than 8,000 units under construction, with most new developments geared toward high-income residents. Yardi Matrix expects rents to increase by 4.9 percent in 2018.