Market Metrics: Salt Lake City, UT Market Metrics Year-over

Market Metrics: Salt Lake City, UT
2015 MARKET REPORT CARD: A
2016 PROJECTED REPORT CARD: AThe continually increasing demand, driven by strong job growth of 3.7% and population growth of 1.2%, have continued to keep
vacancy rates low at 3.6%. The Salt Lake County market comfortably absorbed approximately 2,576 units last year. Year-overyear rent growth at mid-year 2015 is 4.4%. The Salt Lake County workforce of approximately 680,000 is forecasted to continue to
grow at over 3%, adding more than 25,000 new jobs. A few of the primary employers are the University of Utah, IHC, Wal-Mart,
Delta Airlines, and Zions Bank. The current Salt Lake County population of 1.09 MM has been growing at 1.2% and is forecasted to
continue at this pace, nearly twice the National average of 0.7%.
With an existing supply of approximately 120,000 rental units in Salt Lake County, demand is currently exceeding supply resulting in
a tight vacancy rate of 3.6%. The vacancy rate will relax moderately as increased levels of new supply enter the market. Presently,
4,800 new apartment units are under construction in the county. This represents a 4.0% increase in overall supply over the next
two years.
Overall, we believe that Utah’s continued job and population
growth will continue to lead to strong absorption of the
new supply. We also expect rent growth to continue its
trend, albeit at a more normalized level of 2-3%. We also
expect vacancy rates to relax to more typical levels of 4-5%.
Market Metrics
Year-over-Year
through Q2 2015
Vacancy - Q2 2015
3.6%
Average Rent - Q2 2015
$910
Rent Growth
4.4%
Units Delivered
2,576
Units Absorbed
2,444
Total Apartment Inventory - Q2
2015
120,389
Job Growth as a Percentage
3.7%
Job’s Added
25,234
Population Growth as a Percentage
1.2%
Population Growth
13,080
Total Population - Q2 2015
1,090,000
Sources: CoStar, EquiMark Research, Marcus & Millichap Research, Cushman & Wakefield Research, US Census