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Salt Lake City’s rental market is less competitive than it was last year, but prospective tenants still face a bigger challenge finding an apartment than in other Western cities.

Tenants in Box Elder, Cache, Davis, Juab, Morgan, Salt Lake, Summit, Tooele, Utah and Weber counties compete with fewer other possible tenants to secure an apartment than they did last year, according to an analysis by RentCafe.

There also are more vacant apartments, and it’s taking longer for landlords to fill units.

A RentCafe study looked at Yardi Matrix data for 137 markets based on occupancy rates, the number of renters applying for an available unit, vacancy dates, the percentage of renewed leases and the share of new apartments. It used those metrics to calculate a Rental Competitivity Index.

The study found Salt Lake City was one of about 50 markets to show signs of softening, though the city and northern counties still are more competitive than some similar cities and the country as a whole.

Competitiveness has waned as developers have completed new apartments, said Doug Ressler, a senior analyst at Yardi Matrix.

Thousands more units are coming available in the next few years as construction wraps up on new complexes. That will lead to a more renter-friendly market, Ressler said.

Occupancy rates dropping as supply increases

Salt Lake City’s competitive score decreased from 75 to 64 based on changes in the metrics RentCafe examined.

Apartments in the multi-county rental market are vacant for 40 days, on average, before a landlord is able to find a new tenant. That’s down from 30 days at the start of the rental season in 2022.

Occupancy rates also are down from 95.9% to 94.4%. That means there are more open apartments for tenants looking for a new home.

Ressler pointed to occupancy rates as a key metric and said it shows how developers are compensating for a growing population by building more apartments.

The city is set to increase its stock by around 7% this year and next, according to data Ressler provided from Yardi.

“That is quite high,” he said.

Nearly 54% of apartment dwellers chose to renew their leases this year. That’s significantly lower than last year, the study said, and indicates more people are actively seeking a new place to call home in and around Salt Lake City as more units become vacant or open up.

Harder to find a rental than in Boise, Denver, Phoenix

The rental market in northern Utah was less competitive than a year ago but still more competitive than most other markets in the Western region. RentCafe included Idaho, Montana, Wyoming, Nevada, Colorado, New Mexico and Arizona in the same region as Utah.

Salt Lake City’s market had a higher score than Boise, Denver, Colorado Springs, Wyoming, Reno, Las Vegas, Phoenix and Tucson but lower than Montana and Albuquerque.

Apartments filled up faster than in all other cities in the region.

Eleven prospective renters looked at each apartment, on average. That’s higher than every other market in the West besides Montana.

Occupancy rates in the Salt Lake City market also were higher than in nearly every other area in the region. Only Boise and Montana had fewer vacant apartments available.

Construction boom will benefit renters

A boom in apartment construction and economic uncertainties caused most of the changes, RentCafe said.

In Salt Lake City, the biggest factor is the completion of new apartments, Ressler said.

It isn’t just because of cranes downtown, either. Developers are growing supply in Layton and Ogden, and there are various developments underway in Provo and Lehi to support increased demand for rentals, Ressler said.

He added thousands more units coming online in the next few years will continue to ease the competition people face when looking for a new apartment.

“We really think it’s going to be a benefit to the renter,” Ressler said.

Tenants should expect to see concessions as property owners try to retain renters as more and more options become available, he said. People can ask for discounts or a lower increase if a landlord doesn’t automatically offer it.

Ressler also expects Salt Lake City to remain a strong market because of the many options people have for hiking, skiing and other outdoor activities.

So-called “lifestyle markets” like Salt Lake City, Portland, and Denver are resilient, he said.

Megan Banta is The Salt Lake Tribune’s data enterprise reporter, a philanthropically supported position. The Tribune retains control over all editorial decisions.

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