BUSINESS + ECONOMY

Indepth: Apartment building boom in Salt Lake City

Oct 18, 2018, 8:53 AM

Utah rental assistance...

FILE: Central 9 Lofts under construction in Salt Lake City on Wednesday, Oct. 10, 2018.

Everywhere you look in Salt Lake City, it seems a new apartment building is going up. In fact, the city is in the middle of a building boom. But rents are not going down.

Ashley and Cameron shared their thoughts as they left another apartment complex downtown.

“The places all look nice, but nothing is really standing out yet,” said Ashley.

“I think it’s more competitive. There’s a lot more people looking here, and if you want it, cool, if you don’t, we’ll find somebody else,” said her husband.

And competitive is right.

“The demand has for sure increased,” said DJ Benway, research analyst with the Kem C Gardner Institute at the David Eccles School of Business at the University of Utah.

Benway says the market is attempting to meet the demand. The vacancy rate is estimated to be around 3 to 5 percent, which is very low.

“We are building apartments for people who are here and want to be here anyway,” said Benway.

(Salt Lake City’s Current Apartment Boom | Policy Institute, The UofU)

Benway says construction lagged behind the recession and recovery, but it started to pick up, and then the city had a moratorium on impact fees and the number of permits nearly tripled.

“We’ve seen more apartment permits than ever before in Utah’s history in Salt Lake City,” he said.

At City Hall, they say they can’t keep up with the number of people who want to live in Salt Lake City.

“This is all market-driven,” said Melissa Jensen, the director of housing and neighborhood development in Salt Lake City.

“To have a healthy city, we need good a combination where your income meets a certain housing type,” she said.

One of those new apartment buildings is on 4th west. They have 1-thousand new residential units coming on board. No one from the development wanted to talk to a reporter, but online they list 1 bedroom for $1500 a month, and a 3 bed 3 ½ bath for $4455 a month. Other downtown buildings vary, depending on their amenities, luxuries and location.

Rent is a concern for Ashley and Cameron as they looked at one complex: “They are on the pricier side,” they acknowledged.

(Sources: Census Bureau, ACS 2016. | DowntownSLC.org)

Utah Nonprofit Housing Corp. says the average one bedroom apartment rental rate in Utah is just over $1,000. CBRE says the average Wasatch front rental rate is now 11-hundred a month. It was $994 two years ago.

Salt Lake Chamber Vice president of government relations and public policy Abby Osborne says many people can’t afford those rents. And despite all the recent building, there’s still not enough supply.

“For the first time in 40 years, we have more household formations than housing units. We have a gap. We have a 54,000 shortage. It’s the adage of supply and demand. We have intense demand and not enough supply in the market,” said Osborne.

The Chamber’s Housing Gap Coalition is asking cities around Utah to be smarter in how they grow and plan.

(Source: Utah Department of Workforce Services | DowntownSLC.org)

“We need to plan for that access to opportunity, that area where people can live work and play is so important,” said Osborne.

Jensen says Salt Lake City’s five-year plan does include affordable housing of all types, and other cities need to do more.

Benway only sees this building boom continuing.

“There are a lot of proposed units out there still. I don’t expect this apartment boom to stop in Salt Lake City quite yet,” he said.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

EVERETT WALMART, EVERETT, WASHINGTON, UNITED STATES - 2023/04/19: An empty cart is seen near an emp...

Nathaniel Meyersohn, CNN

The real reasons stores such as Walmart and Starbucks are closing in big cities

Several forces are pushing Walmart and Starbucks out of some city centers: a glut of stores, people working from home, online shopping, exorbitant rents, crime and public safety concerns, and difficulty hiring workers.

11 months ago

graduates are pictured, the us is offering some student loan debt forgiveness...

Associated Press

The US has approved $42 billion in loan forgiveness for public service workers. Here’s what to know

The program is separate from U.S. Supreme Court is currently considering whether that plan can go ahead.

11 months ago

people at restaurant eating on mother's day pictured...

Alexandra Peers, CNN

Why Mother’s Day is the most hated day in the restaurant industry

The National Retail Federation forecasts that Mother's Day spending will reach $35.7 billion this year, with a record $5.6 billion spent on a meal or outing.

11 months ago

debt...

Curt Gresseth

Ticktock: US steps closer to debt default

Robert Spendlove, senior vice president and economic and public policy officer at Zions Bank, joins the show to discuss what would happen if the federal government defaults on its debt.

11 months ago

close up of a peleton bike pictured, a recall has been issued for some...

Associated Press

Peloton recalling more than 2M exercise bikes because the seat post assembly can break during use

The recall includes approximately 2.2 million of the Peloton Bikes Model PL01. The bikes were sold from January 2018 through May 2023 for about $1,400.

11 months ago

U.S. President Joe Biden speaks during the Democratic National Committee winter meeting on February...

Arlette Saenz, CNN

Biden takes debt ceiling pitch on road amid standoff with Republicans

The president said he believes the country can avoid default because an "overwhelming number of members of ... Congress know it would be a disaster."

11 months ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

Indepth: Apartment building boom in Salt Lake City