The Salt Lake County rental market continues to set historic records. Homeownership remains cheaper than renting in many areas across the Wasatch Front, with a traditional 30-year fixed rate mortgage.
Homeownership provides many benefits beyond the financial ones. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home.
National key takeaways:
The national average rent reached the all-time high of $1,405 in June 2018, having increased by 2.9 percent year over year, and by 0.9 percent ($12) month over month, according to Yardi Matrix data.
Rents increased in 88 percent of the nation’s biggest 250 cities in June, remained unchanged in 10 percent of cities, and dropped in 2 percent of them compared to June 2017.
The top 20 fastest increases in the country were registered in small cities, where population migration and the strengthening economy are accelerating rent growth.
Manhattan has had the largest year-over-year rent increase of the past 12 months, June having brought a 1.5% increase after a year-long period of decreasing or stagnating price.
Comparable growth across unit types – Small apartments rev up in June
Two- and three-bedroom units were the main drivers of rent growth so far in 2018. June’s increases, however, were almost perfectly balanced among unit types as the demand for studio and one-bedroom units caught up and even outpaced the two-bedroom segment. Three-bedroom homes cost 0.8% more compared to a month prior, $1,714. Two-bed units have seen a somewhat bigger month-over-month increase (although they lagged behind the other categories in yearly comparison), 0.9% to $1,489. Meanwhile, one-bedroom apartments and studios have seen their rents rise by a full percent, to $1,271 and $1,239, respectively.
Salt Lake City Rental Market Trends
The average rent for an apartment in Salt Lake City is $1,087, a 5% increase compared to the previous year, when the average rent was $1,040.
Studio apartments in Salt Lake City rent for $801 a month, while 1-bedroom apartments ask on average $986 a month; the average rent for a 2-bedroom apartment is $1,152.
The average size for a Salt Lake City apartment is 861 square feet, but this number varies greatly depending on apartment type. A studio averages 413 sq. ft., while a one-bedroom apartment offers a more generous square footage: 684. 2-bedroom apartments in Salt Lake City have an average size of 977 sq. ft.
The most affordable neighborhoods in Salt Lake City are Jordan Meadows, where the average rent goes for $942/month, Rose Park, where renters pay $942/mo on average, and Westpointe, where the average rent goes for $942/mo. Other listings from Taylorsville ($979), Poplar Grove ($983), and South Salt Lake ($990), where the asking prices are below the average Salt Lake City rent of $1,087/mo.
The most expensive neighborhoods in Salt Lake City are Downtown Salt Lake City ($1,213), Central City ($1,270) and Sugar House ($1,275).