SANDY, Utah — Rapid population and employment growth in southwestern Utah is driving strong demand for apartments, allowing Washington and Iron counties to absorb thousands of new rental units while maintaining occupancy rates of 95% or higher, according to a new report by the Rental Housing Association of Utah.

Utah has experienced a historic apartment boom since the Great Recession, adding nearly 100,000 rental units statewide. Washington and Iron counties have participated heavily in that expansion. About 20% of the rental housing inventory in each county has been developed during the past seven to eight years, representing approximately 4,400 units in Washington County and 1,100 in Iron County.

Unlike parts of the Wasatch Front, however, the surge in construction has not resulted in serious overbuilding or widespread weakness in southwestern Utah’s rental market.

The primary reason is growth.

Iron County ranks first among Utah’s 29 counties in percentage population growth since 2020, while Washington County ranks third statewide in numeric employment growth, adding 19,400 jobs over five years.

Washington County now has nearly 22,000 renter-occupied units, making it Utah’s fifth-largest rental market. Iron County has more than 6,100 units and ranks seventh. Combined, however, the two counties represent only about 8% of Utah’s rental inventory.

Apartment construction in Washington County has accelerated significantly since 2017, although development has fluctuated from year to year. St. George has accounted for nearly half of apartment units receiving building permits in the county since 2010, totaling 2,230 units. Washington City follows with 1,120 units, while Hurricane and Ivins have added 565 and 440 units, respectively. Together, the four cities account for 95% of the county’s apartment development since 2010.

Iron County’s apartment boom began later, accelerating in 2021. Nearly all recent development has occurred in Cedar City, which accounts for 97.9% of new apartment units in the county. Cedar City reached a record 280 permitted units in 2023 and nearly matched that level in 2025.

Strong demand has also contributed to rapidly rising rents. From 2019 to 2026, the average rent for a two-bedroom unit increased 71.9% in Washington County and 56.7% in Iron County, compared with 43.4% in Salt Lake County. Washington County rents have increasingly approached Salt Lake County levels.

Despite the new supply, occupancy remains strong. A survey of property managers and apartment leasing agents conducted for the report estimates occupancy at 95% in Washington County and 96% in Iron County. Respondents reported no widespread market weakness or serious overbuilding, although some noted that the volume of recent development has increased competition.

The report concluded that the region’s strong demographic and economic growth, along with continued enrollment growth at Southern Utah University and Utah Tech, should allow the market to absorb an annual increase in rental inventory of roughly 3%—about 600 additional units per year in Washington County and 200 in Iron County.

For now, the report characterizes southwestern Utah’s rental market as healthy and well-balanced between supply and demand, suggesting continued apartment development will be needed to accommodate the region’s growth.

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.