SANDY, Utah — Utah’s rental market is in the middle of a historic growth phase—bringing more housing options for renters and setting the stage for long-term opportunity for property owners and landlords, according to the Rental Housing Association of Utah. A new report from the Gardner Policy Institute commissioned by RHA Utah 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.
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. Apartment development in the county dropped sharply in 2024, with only 1,268 units permitted—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 critical 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. 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 2023-2024 reflects planning decisions made years ago.
Looking ahead, the long-term outlook remains bright. 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.
About the Rental Housing Association of Utah
The Rental Housing Association of Utah is a non-profit trade association designed to protect, educate, connect, and grow the rental industry in the state of Utah. RHA represents roughly 3,500 rental operators and more than 160,000 units. Our members range from basement apartment owners to large management companies. If you are in any way involved with the rental housing industry, RHA invites you to discover how membership can support you and your business.