Utah Multifamily Prices Pulling Back To Start the Year

Utah Market Data

Multifamily Prices Pulling Back To Start the Year

Utah single family home prices remain relatively stable so far this year, but small multifamily properties are seeing a sharper price correction so far. Year-to-date data shows single-family home prices only slightly lower than last year, while multi-unit (2+ unit) properties have experienced a more noticeable drop in price per square foot. Sales activity in both segments is fairly close to last year, though multifamily numbers are based on a much smaller pool of transactions.

Multi-Family Sold Listings & Price Per Sq Ft

Single Family Sold Listings and Price Per Sq Ft

Key Takeaways

• Single-family homes: Average $/SF is $260 YTD vs $271 last year (-3.8%)
• Single-family homes: Median $/SF is $230 YTD vs $234 last year (-1.5%)
• Multifamily (2+ units): Average $/SF is $250 YTD vs $284 last year (-12.1%)
• Multifamily (2+ units): Median $/SF is $232 YTD vs $250 last year (-7.2%)
• Sales volume: Single-family sales are essentially flat year-over-year, while multifamily sales are down about 9% YTD (73 vs 80 sales)

Multifamily price data can swing more dramatically because the number of transactions is relatively small compared to the single-family market. With only a few dozen sales year-to-date, even a handful of higher or lower priced properties can shift the averages. That said, higher interest rates continue to put more pressure on income property valuations than on owner-occupied housing.

What This Means for Utah Investors

For Utah investors, the divergence between these markets is worth watching. Multifamily pricing softness may signal improving acquisition opportunities, particularly for value-add properties. However, because the sample size is small early in the year, investors should focus more on the broader trend than any single month of data.

Data sourced from UtahRealEstate.com 

Featured Listings

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Mortgage Rates & Financing

Mortgage Rates Tick Lower – Mortgage rates moved slightly lower this week, with the average 30-year fixed rate around 6.09%. Rates are now meaningfully lower than a year ago, which continues to improve financing conditions for Utah investors and owner-occupants. If rates stabilize near current levels, it could help support more transaction activity heading into the spring buying season.

Treasury Yields Move Higher – The 10-Year Treasury yield climbed to about 4.19% this week, reversing some of the declines seen earlier this year. Treasury yields are a key driver of mortgage rates, so this move could slow further rate improvements if it continues. Investors should keep an eye on inflation data and Federal Reserve signals, as those will heavily influence where borrowing costs go next.

Source: Mortgage News Daily/Market Watch

Headlines & Insights

Utah Headlines

SLC and Ogden Look to Allow More Roommates to Fight Housing Costs – Salt Lake City and Ogden are both considering new rules that would allow more unrelated adults to live together in the same home, a move aimed at making housing more affordable by letting people split the rent. Currently, both cities limit unrelated residents to just three per household, but the new proposals could raise that limit significantly or remove it altogether.

Davis & Weber County Apartment Rents Flat, Vacancy Drops to 4.7% – Average apartment rents in Davis and Weber County increased just 0.8% year-over-year to $1,501 in Q4 2025, while vacancy tightened substantially from a 10% peak in 2023 to 4.7% as new construction deliveries dropped 44% to 1,775 units in 2025

National Headlines

Fed Chair Nominee Warsh Faces Stagflation Risk From Iran Conflict and Weak Jobs – Kevin Warsh faces a "perfect storm" when he takes over as Fed chair in May, with sticky inflation driven by energy prices above $100 per barrel from the Iran war and a softening labor market, forcing difficult choices between the Fed's dual mandate of price stability and full employment.

Southeast Dominates Top 10 Emerging Multifamily Markets of 2026 – The Southeast claims five of the top 10 emerging multifamily markets under 1 million population, led by Savannah-Hilton Head with 8.7% delivery intensity, while Mobile, AL posted the strongest occupancy improvement at 60 basis points year-over-year despite having the smallest construction pipeline at just 476 units.

Mortgage Rates Face Continued Volatility From Iran Conflict and Inflation Data – Housing faces stagflation risk with both the Iran conflict pushing oil prices near levels last seen during Russia's Ukraine invasion and a weak labor market showing essentially flat employment since early 2025, though February CPI data expected Wednesday should show core inflation moderating to 0.2% monthly from 0.3% in January

Housing Bill Mandates Build-to-Rent Owners Sell Properties Within Seven Years – The Senate's 21st Century Road to Housing Act, which passed cloture 89-9, would force institutional investors owning 350+ single-family homes to sell build-to-rent properties to homebuyers within seven years, eliminating the carve-out Trump's executive order provided for build-to-rent communities and drawing criticism from NAHB and industry analysts who warn it could reduce housing supply.

Fed Funds Futures Show 99.4% Probability of No Rate Change at March Meeting – CME FedWatch Tool shows markets pricing in a 99.4% probability the Federal Reserve will hold rates steady at 350-375 basis points (3.50%-3.75%) at the March 18 FOMC meeting, with only a 0.6% chance of a rate cut to 325-350 basis points.

Construction Costs Climb 3.2% as Labor Shortage Drives Builder Expenses – Single-family home construction costs rose 3.2% year-over-year through January, outpacing inflation, with service costs jumping 4.7% due to labor shortages while materials increased just 2.1%, making it harder for builders to deliver lower-priced homes to middle-income buyers

Aging Demographics Reshape Apartment Investment Strategy Across U.S. Markets – With U.S. median age now over 39, the 12-year gap between youngest state Utah (32.5) and oldest Maine (45) is driving divergent investment strategies, as younger markets like Texas and Colorado offer stronger absorption but higher turnover while older markets in New England deliver lower demand but more stable cash flows through superior renewal rates that recently outpaced new-lease pricing.

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David Robinson - Principal Broker | Investor