November 3, 2016
Downtown Salt Lake City is experiencing a huge apartment development boom. In 2010, the number of downtown rental units totaled 5,200. By 2020, that number is expected to double, while the downtown population grows to an estimated 20,000, according to a study by the Kem C. Gardner Policy Institute.
Though the current construction activity, combined with higher rental rates, might seem to be on the path of an overbuilt market, James Wood with the Gardner Policy Institute indicated just the opposite. “As of October 2016, there are no signs of a distressed market. Vacancy rates are low, rental rates are increasing and absorption rates are strong,” he said.
Wood added that, during the next three-to-four years, vacancy rates will increase and, by 2020, the extra inventory will likely end the current cycle.
For comments, questions or concerns, please contact Amy Sorter