Vacancy Plunges 4.1% in Utah County as Multifamily Market Heals

Utah Market Data

Utah County Multifamily Market Update — Q4 2025 

Vacancy Is Improving. Rents Are Stabilizing. Supply Is Still Coming.

Utah County's apartment market ended 2025 in better shape than it started, according to Wadsworth Multifamily Research's Q4 2025 Utah County Market Trends report. Vacancy dropped sharply, rents ticked up for the first time in two years, and the rent-versus-own gap widened further — all trends worth paying attention to if you're invested in or watching the multifamily space along the Wasatch Front.

Vacancy

Total vacancy fell to 5.9% in Q4 2025, down 4.1 percentage points from 10.0% a year ago. That's a significant move in a single year. Stabilized vacancy — which strips out new properties still in lease-up — came in at 5.6%, down from 6.9%. The gap between total and stabilized vacancy has largely closed, which tells you the wave of new deliveries is getting absorbed. Concessions are still common at roughly two weeks of free rent, but there's room for those to compress if vacancy keeps trending down.

Rents

Average rent in Utah County came in at $1,563 per month in Q4 2025, up just 0.7% ($11) year-over-year. That's modest, but it marks a turn — rents had declined in both 2023 and 2024 following the post-pandemic peak of $1,692 in Q3 2022. By unit type, studios average $1,286, one-bedrooms $1,435, two-bedrooms $1,652, and three-bedrooms $1,920.

Supply

This is the number to watch. After 1,969 units delivered in 2024 and 2,625 in 2025, another 2,723 units are projected for 2026. There are currently 3,989 units under construction, with another 3,792 in potential starts and 1,680 in pre-development. Supply isn't letting up, which is why rent growth is expected to remain measured even as vacancy improves.

The Rent-vs-Own Gap

The cost gap between renting and owning in Utah County continues to widen. The median home price hit $510,000 in Q4 2025, with an estimated all-in monthly ownership cost of $3,769 — nearly double the estimated $2,008 monthly cost for the average renter. To comfortably afford that median-priced home at the standard 30% income threshold, a household needs to earn $150,746 annually. To afford the average renter's all-in cost, that number drops to $62,520. That gap is a meaningful tailwind for apartment demand.

What This Means for You

If you own multifamily in Utah County, the worst of the vacancy pressure appears to be behind you. Stabilized properties are performing better, concessions should have room to tighten, and the rent-vs-own dynamic continues to funnel would-be buyers into the rental market. The risk to watch is the supply pipeline — with nearly 10,000 units in some stage of development, rent growth is likely to stay modest through at least 2026.

If you're looking to acquire, the current environment of softer rents and elevated supply is exactly the kind of setup that creates buying opportunities — particularly for well-located assets where the long-term demand fundamentals are strong. Utah County added nearly 16,000 residents in 2025 alone and is projected to roughly double in population by 2065. That's a long runway.

The Bottom Line

Utah County's multifamily market is healing. Vacancy is down sharply, rents are finally moving in the right direction, and the structural case for apartment demand — driven by population growth and an unaffordable for-sale market — remains intact. Supply is the wild card, and we'll be tracking deliveries and absorption closely as we move through 2026. We'll keep you posted each week as new data comes in.

_{Source: Wadsworth Multifamily Research, Q4 2025 Utah County Market Trends. Additional data from BLS, Utah Department of Workforce Services, and the Kem C. Gardner Policy Institute.}

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Mortgage Rates & Financing

Mortgage Rates Tick Up – Mortgage rates moved slightly lower day-over-day but are up over the past week, with the 30-year fixed now around 6.29%. Rates remain meaningfully below last year’s levels, but recent upward pressure reflects volatility tied to inflation and Fed expectations. Higher short-term rates could continue to impact affordability and deal underwriting.

Treasury Yield Rebounds – The 10-year Treasury yield rose to about 4.23% this week after dipping earlier, showing renewed upward pressure. Yields have been choppy in recent weeks as markets react to inflation data and Fed policy signals. Since mortgage rates track the 10-year, this rebound may limit further rate relief for investors.

Source: Mortgage News Daily/Market Watch

Headlines & Insights

Utah Headlines

Utah's Ogden Tops Nation in Gen Z Homeownership as Renters Surge Sixfold – Ogden, UT leads the nation with 41% of Gen Z households owning homes, while Salt Lake City saw an eightfold increase in young renters and Provo ranked 15th for fastest homeowner growth at 23 times.

Utah Legislature Shows "Housing Fatigue" as Growth Bills Face Resistance – Lawmakers rolled back unused programs like HOPZ and FHIZ (both created in 2024) and killed zoning reforms like HB184 for smaller lot sizes, instead allocating $100 million for infrastructure and allowing detached ADUs on lots over 11,000 square feet.

Provo Towne Centre Eyes $500M Redevelopment Into Mixed-Use Project – Brixton Capital plans to transform the struggling mall (bottom 20% for foot traffic) into indoor-outdoor retail with 1,300 apartments and 83 townhomes on 23 acres including adjacent mobile home park.

Salt Lake City Unveils Fleet Block Plans for 8.75-Acre Mixed-Use Development – City plans 2.4-acre open space with amphitheater and stormwater garden in Granary District's "green space desert," plus housing and commercial development with construction likely starting in 2027.

National Headlines

Dow Drops 200 Points as Inflation Surges Ahead of Fed Meeting – Producer prices jumped 0.7% in February versus 0.3% expected, driven by tariff costs in metals and manufacturing. Fed expected to hold rates at 3.5%-3.75% as oil tops $97 per barrel.

Mortgage Rates Hit 6.36% as Iran War Drives Volatility – Rates climbed from 6% over two weeks of conflict as Goldman raised year-end inflation forecast to 2.9%. Fed holds rates Wednesday with summer cut expectations evaporating amid stagflation fears.

AI Becomes Core Infrastructure for Multifamily Operators – Operators now treat AI as critical infrastructure requiring governance across leasing workflows, as listing inconsistencies cause lead leakage affecting NOI. Success demands authoritative data and metrics beyond productivity.

Missing Middle Housing Hits Best Year Since 2007 – Construction of 2-4 unit properties reached 19,000 units in 2025, up 6% but still just 5% of multifamily production versus 11% historically. NAHB blames zoning restrictions.

Refinance Demand Plunges 19% as Rates Hit 6.30% – Rates rose to highest since December driven by Iran conflict and inflation, dropping refinance applications 19% week-over-week. Purchase applications edged up 1% as spring market begins.

Americans 70+ Now Hold Record Share of Real Estate Wealth – For first time, 70+ Americans hold 26% of $48 trillion real estate wealth, matching 40-54 year olds, up from 21.6% a decade ago. Younger Americans see shares shrink amid high prices while boomers benefited from decades of appreciation.

Trump Order Could Ease Small Multifamily Lending by Community Banks – Executive order directs federal regulators to consider excluding 1-4 family residential construction from commercial real estate concentration guidance, potentially easing supervisory constraints for community banks under $100 billion in assets.

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David Robinson - Principal Broker | Investor