— By Patrick Bodnar of CBRE —
Utah’s multifamily market remains one of the most resilient and compelling real estate environments in the country, supported by exceptional economic fundamentals and a steadily tightening development pipeline. Utah once again ranked No. 1 in the nation in 2025 in the American Legislative Exchange Council’s (ALEC) economic outlook index, marking its 18th consecutive year at the top and earning high marks for overall performance, labor participation and business affordability.
These strengths, paired with ongoing population and job growth, continue to reinforce consistent long-term demand for rental housing across the Wasatch Front.
Against this backdrop, rent trends are beginning to shift. After several years of rent stagnation driven by elevated supply, rent growth is positioned to rebound in the second half of 2026. The past three years were characterized by relatively flat asking rents, but CBRE’s analysis indicates that future rent growth is approaching as new deliveries decline and supply is absorbed.
This shift is largely the result of two converging factors: a meaningful slowdown in new construction starts — driven by higher interest rates and sustained construction cost pressures — and persistently strong absorption, which places Utah among the top-performing absorption markets in the Western U.S.
At the property level, performance remain steady with early signs of strengthening. Current market fundamentals remain stable, with occupancy at 93.9 percent and concessions slowing in several suburban areas. Downtown Salt Lake is already outperforming the broader metro, posting 3.04 percent trailing 12-month rent growth and maintaining the highest overall asking rents at $1,817.
Meanwhile, top-of-market units are reaching $3,534. Submarkets across Davis, Utah and Weber counties continue to show diversification in rental pricing, while all three benefit from the regional drivers of in-migration, employment expansion and infrastructure investment.
On the supply side, the development pipeline is entering a new phase. The development landscape is undergoing a significant transition. After several years of record-breaking multifamily deliveries, the pipeline is naturally moderating with fewer units projected to reach completion in the coming years.
Elevated capital costs have materially reduced new starts, allowing existing lease-ups to stabilize and setting the stage for the next phase of rent acceleration. Construction remains active across Salt Lake, Utah, Davis and Weber counties, particularly in high-growth corridors like Downtown Salt Lake City, the Silicon Slopes region, Layton and Ogden.
Capital markets activity is also beginning to adjust to this new environment. Transaction activity, which softened in 2023 and 2024 due to rising interest rates and peak supply deliveries, is gradually improving. Investors are pricing assets with capitalization rates trending toward neutral leverage, reflecting both caution and growing confidence.
Market sentiment suggests that once supply tightens further and projected rent growth materializes, Utah will likely see increasing deal volume over the next 18 to 24 months, particularly as owners address maturing debt and reposition operationally challenged assets.
Taken together, these trends point to a more favorable outlook. Looking ahead, Utah’s multifamily sector is positioned for a strong performance cycle. Major economic and civic investments, including the 2034 Winter Olympics, a new 500,000-square-foot downtown hospital, ongoing airport expansion and the arrival of Utah’s NHL franchise, reinforce the region’s long-term growth trajectory.
With constrained future supply, strong demographic tailwinds and improving capital markets conditions, 2026 and beyond are expected to mark a new chapter of growth for owners, investors and developers across the state.
— By Patrick Bodnar, Senior Vice President, CBRE. This article was originally published in the March 2026 issue of Western Real Estate Business.