Occupancy, rent increase in Salt Lake City driven by job creation

Salt Lake City has experienced an increase in demand for rental units, according to Marcus and Millichap, which the firm attributes to major job growth in the first three quarters of 2011.

Private sector employment grew about 2.3 percent, the firm estimates, adding almost 11,000 jobs. A further 14,000 new jobs are expected in the coming year, continuing the trend even more strongly. The 2011 performance dropped the unemployment rate to 6.2 percent, according to the Bureau of Labor Statistics.

This strong fundamental has furnished the metro area with people possessing the means and desire to pursue multifamily rentals, leading to significant decreases in vacancy rates across a spectrum of properties of varying quality and cost, the report notes.

Effective rents reportedly grew 1.9 percent over the previous year for the city as a whole, and as much as 3.9 percent in the submarket which benefited most. Rental property management firms and landlords can likely expect further rent growth during 2012 if job creation projections hold up, although it may be focused in different submarkets.