A combination of a growing population and increasingly unaffordable homeownership costs has led to record numbers of apartments being built in Utah and West Valley City. 

The Rental Housing Association of Utah reports that about 12,000 rental units will become available statewide over the course of this year, some of which are coming online in West Valley City. 

“The high cost of homeownership is creating a stable demand for rentals,” said Paul Smith, executive director of the RHA. He added that the average monthly rent in Salt Lake County is $1,600 while the midpoint mortgage payment is $3,500 per month.

The burst in apartment construction started during the height of the COVID-19 pandemic in 2020 and building permits went through the roof with an all-time high of 14,143 permits issued in 2021, according to the RHA. 

That red-hot pace has since slowed to an estimated 5,300 permits to be given to builders this year, a 63% decline from the peak period, reports the Kem C. Gardner Policy Institute at the University of Utah. This is occurring as Utah added more than 600,000 people to its population between 2021 and 2022. To keep up with the state’s ongoing population growth, it is estimated that 9,000 new rental units are needed each year. 

The underlying reason for all the apartment construction is home prices that have risen beyond the ability of the average salary of Utahns to cover the mortgage payments. The median home price in the state ranged from $510,000 to $550,000 as of midyear, depending on the source. Brokerage service Redfin reported the higher figure, while the Utah Association of Realtors compiled the lower midpoint of purchase prices The Federal Reserve pegged the median listing price of homes in Salt Lake County at $593,000 in September.  

Two large-volume apartment complexes are leasing or nearing completion in West Valley City. The Opal just east of Costco is undergoing finishing touches while putting 262 units on the rental market. North of the Maverik Center, Decker Stations Apartments are in the late stages of construction and will make an additional 219 apartments available for rent.

Apartments with 20 or more units make up 22.7% of rented households in Utah, according to the RHA. Buildings containing duplexes with up to 19 total units represent the largest percentage of rental housing at 39.1% followed by single-family homes and basement apartments at 35.1%. Other structures make up the remaining 3.1%.  λ