SALT LAKE CITY, Utah – October 23, 2017 – The apartment market in Utah County is as strong as ever according to new research from Cushman & Wakefield. The current vacancy rate is 4.2 percent, reflecting high demand, which will continue well into next year.
“With the fastest growing population along the Wasatch Front, the demand for housing in Utah County is incredibly strong,” said Kip Paul Executive Director, Investment Sales at Cushman & Wakefield. “The housing market, including apartments will experience significant pressure in terms of inventory and prices going forward. Even with 20 new apartment communities totaling 3,915 units having been proposed in Utah County for the next two years, demand is so high, there is no sign of oversupply in the foreseeable future. Property investment, particularly in this space, is a highly attractive prospect for developers and buyers.”
Utah County has nine apartment communities totaling 1,685 units under construction. Of those, 38 percent are located in Vineyard (668 units), and 26 percent are in American Fork (444 units). These two cities account for two-thirds of apartment units currently under construction.
The current average rental rate is $1,142, which is higher than Salt Lake County. Rental rates are anticipated to rise between four percent and six percent annually and even with new product coming to market, vacancy is not expected to exceed 4.5 percent.
With the two largest universities, by enrollment, in the state, student housing is big business. However, nearly 40% of Utah County’s rental units are in non-student apartment communities, demonstrating a diversified development strategy for the area.
The Cushman & Wakefield Apartment Market Report for Utah County is available to download here.
For Further Information Contact:
Cushman & Wakefield
Executive Director, Investment Sales
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action.