Why Are Rents Going Up in Utah? In Salt Lake, up 12% from last year
Salt Lake County rental prices are indeed increasing, but not as fast as house prices, according to the Utah Apartment Association.
Salt Lake County’s median monthly rent cost rose to $ 1,389 in June, up 12% from the previous year, according to Realtor.com. In contrast, the median price of homes (of all housing types) in Salt Lake County climbed to $ 455,000 in the second quarter, up 23% from the second quarter of 2020, according to UtahRealEstate.com.
This shows that Salt Lake County rent has risen by almost half the rate of home prices over the past year.
“While rent increases can be difficult to absorb, the typical monthly mortgage in Utah soared to $ 2,547 in June,” said Holly Sanford, chair of the Utah Apartment Association board of directors, in a statement prepared Thursday.
The Utah Apartment Association is a non-profit, commercial organization that represents over 2,500 homeowners and over 105,000 units ranging from basement apartment owners to large management companies.
Sanford added that “many rental landlords have made a compassionate and deliberate decision” during the COVID-19 pandemic not to increase rents in 2020. In Utah, rents rose 1.4% in l Utah in 2020, while in Salt Lake County, that figure was only 1%, according to a report from CBRE, a commercial real estate company.
“Renters don’t like increases, but compared to home ownership, renting is more affordable,” Sanford said.
Home buying prices rose during the year of the pandemic, especially in West and Utah, as many Americans chose to move from large cities to more spacious areas at lower prices. .
The 12% increase in Salt Lake County is a big increase in a trend that Utah rental prices have increased almost every year for the past decade, even before the pandemic. Utah rental prices have climbed 5-7% per year along the Wasatch Front, pushing the average cost of an apartment in Salt Lake County from $ 793 in 2008 to around 1,200 $ in 2019.
Salt Lake County’s median rent of $ 1,389, however, was lower in June than many other cities in the western United States, the Utah Apartment Association noted. In Las Vegas, the median rent in June was $ 1,397, Phoenix $ 1,590, Portland $ 1,645, Denver $ 1,820, Sacramento $ 1,821 and Seattle $ 1,910.
In the largest metropolitan areas of the United States, the median rent in June was $ 1,575, up 8% year on year, according to Realtor.com.
Salt Lake’s rent will likely continue to rise between 2021 and 2025 – but at a lower rate than 2021, around 4% to 7% per year, real estate research firm Costar predicts.
Another report released earlier this month by Utah-based property management software company Entrata – which used data from a smaller sample of about 14,000 apartments in Weber, Davis counties, Salt Lake, Utah and Washington – reported larger rent increases in this collection. of apartments. This report indicates that the average rental price in these five major Utah counties increased 45% in a year and a half before the start of the pandemic.