MARKET SNAPSHOT

2025 Salt Lake City Forecast

2024

FORECASTED ANNUAL CHANGE

2025

$1,569

Q4 AVG. EFFECTIVE RENT

2.5%

FORECASTED ANNUAL CHANGE

$1,609

Q4 Avg. Effective Rent

92.3%

Q4 AVG. OCCUPANCY

+10 BPS

FORECASTED ANNUAL CHANGE

92.4%

Q4 Avg. Occupancy

5,011

2024 COMPLETIONS

4,006

10 Yr. Avg. Annual Completions

4,108

2025 COMPLETIONS

4,717

2024 NET ABSORPTION

3,318

10 Yr. Avg. Annual Net Absorption

3,810

2025 NET ABSORPTION

Source: CoStar
Key Market Themes for 2025
  • SLOWING DEVELOPMENT PIPELINE

    Development activity in Salt Lake City has significantly tapered, with only 5,500 units under construction as of early 2025—a sharp decline from nearly 12,000 units just two years ago.

  • SUPPLY-DEMAND GAP NARROWS TOWARD EQUILIBRIUM

    The narrowing supply-demand gap is expected to drive occupancy rates upward to 92.4% by year-end, reflecting a steady recovery.

  • RENT GROWTH TO REBOUND IN 2025

    A more balanced delivery pace in 2025 is set to support rent growth, turning positive by midyear. By year-end, rents are projected to rise 2.5% annually, marking the first increase in two years.

2025 SUPPLY TRENDS

MULTIFAMILY STARTS DECREASED IN 2024

MULTIFAMILY STARTS DECREASED IN 2024

2023: 2,691 units > 2024: 1,902 units

Annual Decrease of 789 units or 29%

10 Yr. Historical Annual Average: 4,270 units

UNITS UNDER CONSTRUCTION TRENDING BELOW THE 10 YEAR AVERAGE

UNITS UNDER CONSTRUCTION TRENDING BELOW THE 10 YEAR AVERAGE

5,480 units under construction as of December 31st 2024

10 Yr. Historical Annual Average Units UC: 7,276

32.8% lower than historical average

UNIT COMPLETIONS PROJECTED TO DECREASE IN 2025

UNIT COMPLETIONS PROJECTED TO DECREASE IN 2025

2024: 5,011 units > 2025: 3,904 units

Annual Decrease of 1,107 units or -22.1%

10 Yr. Avg. Annual Completions: 3,997 units

Development activity is slowing across the Salt Lake City metro as developers significantly reduce the pace of new project starts in 2024. As of early 2025, approximately 5,500 units are under construction, a stark decline from the nearly 12,000 units in the pipeline just two years ago. Examining the current pipeline, around 4,100 units are expected to deliver in 2025, a figure closely aligned with the metro’s 10-year historical average. This slower pace of completions is expected to better align with demand, serving as a stabilizing factor for occupancy rates. Most ongoing developments are concentrated in Downtown Salt Lake City, the West Salt Lake City submarket, and communities south of Downtown. The growing presence of tech companies in the southern metro area and Lehi, coupled with the potential expansion of the FrontRunner and TRAX transit systems, has created strong momentum for apartment development in the southern suburbs.

2025 RENT & OCCUPANCY TRENDS
ANNUAL RENT GROWTH & OCCUPANCY
OCCUPANCY TRENDS

Salt Lake City’s pace of new supply has been gradually declining after peaking at 5,800 units in 2023. In 2024, new deliveries dropped to 5,000 units, with approximately 4,100 units expected in 2025—a level consistent with the metro’s 10-year historical average. On the demand side, renter activity closed 2024 on a strong note, with over 4,700 units absorbed on a net basis, significantly exceeding the long-term average of 3,318 units. Net absorption also outpaced new supply during the final quarter of the year, reflecting healthy demand dynamics.

This surge in demand was partially fueled by rapidly rising home prices in the Salt Lake City metro, which have kept many prospective buyers in the rental market. Looking ahead to 2025, net absorption is expected to moderate to approximately 3,800 units. However, as the supply-demand balance narrows, occupancy rates are projected to edge upward, reaching 92.4% by year-end 2025, signaling a steady recovery in the market’s fundamentals.

RENT TRENDS

Year-over-year rent growth in Salt Lake City declined by 1.2% at the end of Q4 2024, marking the seventh consecutive quarter of annual decreases. This trend has been largely driven by supply-side pressures, as property owners offered significant concessions to lease up newly delivered units, while operators of stabilized properties focused on maintaining occupancy rather than aggressively pushing rents. However, the second half of 2024 showed early signs of recovery, with rents improving by 50 basis points quarter-over-quarter by year-end. This upward momentum is expected to continue into 2025.

With a more balanced pace of deliveries in 2025 that aligns better with the market’s capacity to absorb new units, rent growth is anticipated to turn positive by midyear, marking the first annual increase in two years. By the close of 2025, rents are forecast to grow by 2.5% year-over-year. Across the metro’s 14 submarkets, rent growth is projected to range from 2.5% to 3.5%, with a few exceptions. Holladay is expected to lead the market with a robust 5.0% increase, while Sugar House, which will see the addition of over 750 new units—expanding its inventory by nearly 18%—is forecast to experience the weakest growth at 1.0%, reflecting the impact of new supply on rent dynamics.

Submarket Rent & Occupancy

2024 INCOME & EXPENSE ANALYSIS

12-month period ending November 2024

CLICK TO VIEW FORECAST DATA

INCOME

INCOME
Income AssumptionsValue / UnitYear Change (%)
Occupancy (%)91.90%0.5%
Rental Income / Occupied Unit$1,532.410.7%
Recoverable Expenses / Occupied Unit$139.805.5%
Other Income / Occupied Unit$132.781.4%
Total Income / Occupied Unit$1,804.991.1%
Operating Income
Rental Income$1,408.091.3%
Recoverable Expenses$128.466.1%
Other Income$122.001.9%
Total Income$1,658.551.7%

EXPENSES

EXPENSES
Operating ExpensesValue / UnitYear Change (%)
Payroll$149.407.2%
Marketing & Advertising$25.204.9%
Repairs & Maintenance$88.942.0%
Administrative$41.328.2%
Management Fees$51.16-1.2%
Utilities$100.225.8%
Real Estate & Other Taxes$115.31-2.9%
Insurance$37.0413.5%
Other Operating Expensees$1.53
Total Operating Expense$610.113.8%
Net Operating Income$1,048.440.5%
Please note that the income and expense data presented in this section is sourced from trusted third-party data providers and does not reflect the entire market. While we strive for accuracy, our firm does not provide any warranty or guarantee regarding the reliability or precision of this information. We recommend users exercise discretion and professional judgment when interpreting and utilizing this data.
MARKET OUTLOOK

The Salt Lake City metropolitan area is poised for a strong 2025, with unemployment projected to average a low 2.7% and the addition of 13,800 new jobs, representing a 1.7% increase in employment. The finance sector remains a key driver of local economic growth, bolstered by significant investments from major employers. CleanJoule plans to invest $150 million and create 100 high-paying jobs over the next decade, while Strider aims to add over 150 positions in the southern metro within five years.

In the multifamily market, a narrowing supply-demand gap is expected to support rent growth exceeding 3.0% by year-end 2025, with occupancy rates forecast to stabilize at 92.4%. These trends highlight the region’s robust economic and housing fundamentals, positioning Salt Lake City for sustained growth and resilience in the coming year.

Disclaimer: This multifamily forecast incorporates data from reputable third-party sources, including Costar, Yardi Matrix, the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and ESRI. While we make every effort to ensure accuracy, we cannot guarantee the reliability of the projections provided. Forecasts are inherently subject to change due to evolving market conditions, economic factors, and unforeseen events. We strongly encourage users to conduct independent due diligence and consult with an MMG Advisor before making any investment decisions based on this information.

To gain further insights into the Salt Lake City market, contact our team:

Will Moss

Will Moss

Sales Agent

will.moss@mmgrea.com
MMG LLC – Brokerage #14205725-CN00

Adam Riddle

Adam Riddle

Broker

adam.riddle@mmgrea.com
MMG LLC – Brokerage #14205725-CN00

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