SANDY, Utah — Salt Lake City’s rental supply is nearly keeping pace with demand. By 2028, the city is expected to add about 7,300 new rental units—just under the projected growth of roughly 7,500 renter households—according to a new report commissioned by the Rental Housing Association of Utah.
With demand modestly outpacing supply, the vacancy rate is expected to decline from its current level of 6.9%. By year-end 2028, the local market is projected to move toward stabilization, characterized by a lower vacancy rate of approximately 6%, fewer and less generous concessions, and modest increases in rental rates.
“Salt Lake City is building a significant amount of housing, but the data show we’re still just barely keeping pace with demand,” said Paul Smith, executive director of the Rental Housing Association of Utah. “The good news is that continued construction should help prevent the severe shortages and rapid rent spikes we saw earlier in the decade.”
Salt Lake City has experienced an unprecedented wave of apartment construction in recent years. Statewide, Utah permitted more than 32,000 apartment units between 2019 and 2021, driven by rapid population growth, rising home prices, and historically tight rental vacancies.
Salt Lake City was at the center of that boom, capturing roughly one-quarter of all new apartment construction statewide. After a slowdown between 2022 and 2024, permitting activity rebounded in 2025, signaling that developers continue to see strong long-term demand for rental housing in the city.
Renter households in Salt Lake City have been growing at an estimated annual rate of about 3.85% when long- and short-term trends are combined. By 2025, the city had approximately 64,500 rental units, with about 60,000 occupied. At that pace, the city needs roughly 2,500 new apartments each year just to keep up, helping explain why vacancy rates have remained relatively low despite heavy construction.
Rents at newly built properties remain elevated. Studios average around $1,500 per month, one-bedroom units near $2,000, and two-bedroom units exceed $2,800. However, the influx of new supply has led to unusually generous concessions, with eight to twelve weeks of free rent now common, often paired with gift cards or cash incentives. These concessions effectively reduce rents by 10% to 15%, a level of discounting rarely seen in Salt Lake City, particularly at income-restricted properties.
The development pipeline remains sizable. More than 2,600 market-rate units are currently under construction, largely downtown and in nearby neighborhoods, with another 5,700 market-rate units proposed. While not all proposed projects will be built by 2028, additional supply is expected. The affordable housing pipeline is also expanding, with about 1,700 low-income housing tax credit units under construction and another 1,600 approved.
By 2028, the addition of roughly 7,300 rental units is expected to nearly match demand growth. While today’s abundance of concessions is unlikely to last, continued development should help keep rent growth more stable and prevent the severe shortages that previously drove prices sharply higher.
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.