Utah rental market softens, but for how long?
Jul 16, 2024, 6:00 AM
FILE: New apartments under construction in Herriman are pictured on Feb. 22, 2021. The Utah rental market has recently softened. (Scott G Winterton, Deseret News)
(Scott G Winterton, Deseret News)
SALT LAKE CITY —After years of skyrocketing prices, the rental market in Utah is softening a little.
That’s thanks to a lot of new units currently hitting the rental market, prompting some landlords to offer more incentives to new tenants.
But with a slowdown in new construction right now due to higher interest rates, this small measure of relief is not expected to last forever.
A different market
In Salt Lake City’s Ballpark neighborhood, Rick Butterfield shows off the latest place to live.
“Brand new, just completed,” said Butterfield, who is co-owner of West Temple Townhomes. The three-story units on the corner of West Temple and 1700 South are designed with working professionals in mind.
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But Butterfield is finding this market is a little different than it has been.
“Right now, there’s so many things available to rent,” he said.
That’s why Butterfield is now offering an incentive – one-month free rent for new tenants. The goal, he said, is “to get people in and get them to be here.”
He’s not the only landlord offering a concession like that.
“You’re seeing that competition for tenants increase,” said Gavin Gilbert, staff attorney and government relations director at the Rental Housing Association of Utah.
Gilbert said the market in Utah is definitely softening.
“For a large period, we saw home prices and rental prices skyrocket,” Gilbert said. “We’re seeing that level off.”
Increase in new supply
Why is Utah’s market softening? Two words – new construction.
“There’s now more apartments available than people looking for apartments,” said Dejan Eskic, a housing analyst at the Kem C. Gardner Policy Institute at the University of Utah.
Read the full story from KSL TV here.
