Utah’s rental market expanding to meet demand, Gardner study finds

Utah’s rental market is in the middle of an historic growth phase, bringing more housing options for renters and setting the stage for long-term opportunity for property owners and landlords, according to a new report from the Kem C. Gardner Policy Institute that was commissioned by the Rental Housing Association of Utah. 

The study shows that recent surges in apartment construction are a strategic response to Utah’s rapid population growth and rising demand.

Over the past decade, Utah has become one of the fastest-growing states in the nation. Since 2013, the median home price has more than doubled — from $220,000 to $564,000 — making homeownership a challenge for many. As a result, more Utahns have turned to renting, driving strong demand for high-quality, well-located rental housing, the report concludes.

To meet this demand, developers responded with a record-breaking wave of apartment construction. From 2019 to 2023, an average of 10,000 rental units were approved annually — the largest increase in the rental supply in Utah’s real estate history. In 2021 alone, more than 14,000 units received permits, helping to expand Utah’s rental inventory during a time of limited availability.

From 2019 to 2023, authorized apartment units outpaced demand by about 4,000 units. Many of these are now in the lease-up phase, causing higher vacancy rates, especially in Salt Lake City.

However, this overbuilding will be short-lived, Gardner researchers said. Apartment development in the county dropped sharply in 2024, with only 1,268 units permitted. That is far below the 4,900 needed to meet annual demand.

For renters, this increase in supply brings more choice, improved amenities and greater affordability, especially in key counties like Salt Lake, Utah, Davis and Weber. For landlords and property owners, it presents a window to attract tenants with competitive pricing and updated offerings, with the expectation that demand could heat up again soon.

“Utah continues to attract new residents because of its strong economy and quality of life,” said Paul Smith, RHA Utah executive director. “As more people move in, today’s rental supply will play a crucial role in avoiding housing shortages tomorrow.”

While vacancy rates have ticked up slightly and some landlords are offering concessions, these trends offer renters much-needed breathing room and allow landlords to stabilize rents for long-term retention, the study found. Experts also note that there is typically a three- to four-year lag between issuing building permits and bringing units to market — meaning the supply added in 2023-24 reflects planning decisions made years ago.

The long-term outlook remains bright, according to study authors. Utah’s continued job growth and in-migration suggest that today’s investment in rental housing is well-timed. Both renters and landlords are well-positioned to benefit as the state grows into its next chapter.

The Rental Housing Association of Utah is a nonprofit trade association designed to protect, educate, connect and grow the rental industry in Utah. RHA represents roughly 3,500 rental operators and more than 160,000 units, ranging from basement apartment owners to large management companies.