Cushman & Wakefield | Commerce reports the apartment market in Salt Lake County as 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.