Rents Hit Bottom as New Construction Drops 52%

Utah Market Data

Salt Lake County Apartment Market: Is The Correction Over?

After three years of declining rents and oversupply, Salt Lake County's multifamily market seems to finally be stabilizing. According to a recent report by Wadsworth Multifamily, average rents held flat in Q4 2025, and new construction deliveries are set to drop by 52% in 2026, creating the conditions for a recovery in fundamentals.

Key Takeaways

• Rents have bottomed - Average rent of $1,614/month is essentially flat (+0.3%) after falling 8.5% from the 2022 peak

• Supply pipeline is shrinking fast - Only 3,600 units projected for 2026 delivery, down 52% from 2025's 7,607 units

• Concessions remain elevated - Properties are giving away an average of 0.9 months free rent (7.5% of annual revenue), but this should improve as supply tightens

• Rent-to-own gap supports demand - Homeownership costs $4,092/month vs. $2,059 for renting, keeping more households in the rental market

What This Means for Utah Investors

The market has turned. Investors who weathered the correction are positioned to benefit from improving occupancy, declining concessions, and modest rent growth in 2026. With new supply dropping by half, now is the time to focus on operational efficiency and prepare for better performance ahead.

Featured Listings

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Mortgage Rates & Financing

Mortgage Rates (as of Feb 11, 2026)
Mortgage rates moved lower this week, with the 30-year fixed now around 6.11%. Most loan types are down both week-over-week and year-over-year. Compared to one year ago, rates are roughly 0.7% to 1.0% lower, and adjustable products are down even more. The short-term trend is easing slightly.

10-Year Treasury Yield (as of Feb 11, 2026)
The 10-year Treasury is sitting near 4.17%, up modestly today but still within its recent range. Overall, rates are drifting lower, but they remain in a narrow band rather than making a major move in either direction.

Source: Mortgage News Daily/Market Watch

Headlines & Insights

Utah Headlines

Utah Bill Creates Special Eviction Court – Utah lawmakers are considering a bill to create a new Collections and Housing Court that would only handle eviction cases and debt collection matters. The new court would use existing judges and clerks to improve efficiency and help renters and landlords get their cases heard by specialists in housing law.

Homebuyer Program Claim Questioned – Utah Senate President Stuart Adams says his first-time homebuyer program has lowered rental prices, but housing experts say the rent drop is actually due to new apartments being built. Adams is asking for $10 million more for the program, which has helped nearly 3,000 people buy homes since 2023.

National Headlines

House Passes Major Housing Bill – The House overwhelmingly approved the Housing for the 21st Century Act by a vote of 390-9, sending it to the Senate for consideration. The bipartisan bill aims to increase housing supply by expanding financing for affordable housing, raising loan limits for apartment buildings, and streamlining environmental reviews for certain housing projects.

FHA Mortgage Demand Jumps Amid Affordability Crunch – More homebuyers are turning to FHA loans as housing affordability remains a challenge, with FHA applications rising even as conventional mortgage rates held steady at 6.21%. Borrowers are also increasingly using adjustable-rate mortgages, which are nearly a full percentage point cheaper than fixed-rate loans.

U.S. Housing Shortage Hits 1.2 Million Units – The National Association of Home Builders estimates America needs 1.2 million additional housing units to bring vacancy rates back to normal levels, split evenly between rental and for-sale properties. Major metro areas like Chicago, New York, and Philadelphia face the biggest shortages, with some needing tens of thousands of units to restore market balance.

Apartment Industry Outlook Mixed at Major Conference – At the National Multifamily Housing Council's annual meeting, sentiment varied widely with operators most pessimistic, owners cautiously optimistic, and developers eager to build as construction starts have dropped. While distress remains real in supply-heavy Sun Belt markets and older properties, experts say recovery timelines will differ significantly across regions.

January Jobs Report Beats Expectations – U.S. employers added 130,000 jobs in January, more than double the expected 55,000, while the unemployment rate fell to 4.3%. Healthcare led with 82,000 new jobs, though the government also released final revisions showing 898,000 fewer jobs were created in 2024-2025 than initially reported.

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David Robinson - Principal Broker | Investor