Boasting one of the country's lowest metropolitan unemployment rates at the beginning of this year at 6.5 percent, Utah's Salt Lake City added about 20,400 new positions from the first quarter of 2011 to the same period in 2012.
The local and state governments are both offering significant tax incentives that have encouraged increased business activity, according to Hendricks and Partners. As Americans flock to the opportunities the metro area has to offer, the vacancy rate has fallen from 5.7 to 5.1 percent in the past year and is expected to hit a low 4 percent in 2013. Analysts attribute the area's strong performance partly to low energy costs, as well as favorable tax policies and incentives.
The firm reports that rental property management companies and owners are likely to see a spike in apartment demand downtown as the City Creek Center, a major new retail venue, opens its doors. Additionally, the number of new market-rate units expected to come online this year is a decade-low 740, which the news source suggests will contribute further to low vacancies.
Taken together, these pressures are predicted to cause rents to increase both this year and in 2013.