SANDY, Utah — Apartment building permits in Utah rose to 9,683 units in 2025 — more than double the number issued in 2024 and the third-highest total on record — according to a new report commissioned by the Rental Housing Association of Utah.
“The state’s high housing prices have boosted demand for rental housing over the past decade, supporting the apartment boom, and will continue to positively impact future demand,” said Paul Smith, executive director of RHA Utah. “Because apartment construction and lease-up typically take more than three years, the 9,683 units receiving building permits in 2025 are expected to reach the rental market in 2028–2029.”
Weak economic conditions in 2024 led to substantially fewer new apartment communities, with the number of permits authorized for new units falling to the lowest level in nine years. However, permit activity rebounded in 2025 to the third-highest year on record, with 9,683 units—exceeded only by 2021 and 2022.
Strong housing demand, including demand for rental units, is supported by Utah’s relatively large population of young adults. One in three renter householders in Utah is between 25 and 34 years old, and this age group represents a significant share of the state’s population. In 2023, 14.8% of Utah residents were ages 25–34, ranking fourth-highest among all states.
Apartment demand is expected to continue rising as housing prices remain elevated. The median sales price of a single-family home in Utah in 2025 was $564,000, while the median sales price of a condominium or townhome was $430,000. Young households typically purchase homes priced below the median. At 2025 housing prices, only one in six renters (16%) could afford a single-family home priced at 80% of the median price, and only one in four renters (25%) could afford a condominium or townhome priced at 80% of the median price.
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.