Demand is up but supply is down in Utah’s apartment market. Vacancy rates are below 5 percent and rental rates have increased by more than 10 percent in the past two years. These conditions signal a need for more apartment units, however new apartment construction is way off the pace of the last few years. Through October of this year, permits statewide have been issued for only 910 new apartment units, Table 1. That’s a paltry number considering there are 270,000 renter occupied units in Utah.