Salt Lake City Q1 2024 Multifamily Market Report

Mountain West Commercial Real Estate

Salt Lake City Q1 2024 Multifamily Market Report

Salt Lake City, UT – Mountain West Commercial Real Estate (MWCRE), the largest independently owned full-service commercial real estate brokerage operating in the Intermountain West, has released its market report for the Salt Lake City multifamily market. The report highlights several key takeaways that provide insights into the current and future state of the market.

One significant observation is the expectation of continued high vacancy rates over the next year, as construction deliveries outpace average absorption rates. However, 2024 absorption may surpass the six-year yearly average due to factors such as housing affordability concerns and rising interest rates, which could drive more individuals towards renting rather than buying homes.

“Salt Lake City’s economic and cultural vitality continues to drive demand for multifamily housing, attracting professionals to its diverse job market, vibrant cultural scene, and abundant outdoor recreation opportunities,” said agent J.R. Howa. “Despite near-term supply challenges, the market remains poised for robust long-term growth”.

Anticipation of interest rate cuts in 2024 could further influence the market dynamics by incentivizing more home sellers, potentially impacting multifamily vacancy rates and absorption levels.

The report indicates a year-over-year decrease in rents overall, with a notable decline of 1.5% across various building sizes. However, the small-building segment, comprising units with 20 or fewer units, experienced rent growth of 1.9%, indicating a trend towards cost-sensitive housing options.

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About Mountain West Commercial Real Estate Mountain West Commercial Real Estate is a full-service commercial real estate firm that specializes in brokerage, property management, development services, and Capital Markets. With a team of experienced professionals, Mountain West Commercial delivers personalized solutions to clients across the Western United States. The company’s commitment to integrity, innovation, and excellence has made it a trusted partner in the commercial real estate industry.