Cushman & Wakefield | Commerce reports the apartment market in Salt Lake County as strong and solid

salt lake city apartment studyThe Apartment Market in Salt Lake County can best be described as phenomenally strong and solid.

The highlights of this year’s study include:
• 3% vacancy rate valley-wide; lowest vacancy rate in 13 years.
• Rent growth of 2% over prior year.
• Number of rental units increased by 1.1% in 2013 with only 800 permits issued year-to-date, 2014.
• 32% of apartment communities offered specials or concessions, usually discounting first month’s rent or reduction in deposit, which is similar to 2013.
• Current level of new construction does not pose a threat to the market.
• Transaction volume is down, compared to 2013, due only to lack of willing sellers.
• Annual demand for new apartment units in Salt Lake County is estimated to be 3,000 units per year, a 2.5% increase.
• 20,659 units have been added between 2000 – 2010.

The forecast for the upcoming year includes:
• Market conditions for apartment owners will continue to be favorable.
• Vacancy rates will remain under 5%.
• Planned projects for 2014 will not destabilize the market; however, more than 6,000 units proposed over the next 2 years will likely test the depth of the high end market, particularly in Salt Lake City.
• Rental rates will increase 3% or more.
• Demand continues to increase from both institutional and private investors.

Read the entire report

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>