Salt Lake City, UT

Salt Lake City’s construction market is set to drop off sharply, contracting almost 17% from 2021.

All sectors are expected to follow the same trend, with decreases ranging from just under 3% (in the manufacturing sector) to almost 23% (in the residential sector). Even so, the market is still better off than before the pandemic and continues to outperform the construction markets in other cities. In December, unemployment was less than 2% – the benchmark that economists consider “full employment” – and only 13,000 unemployment insurance claims were reported in the last week of January. The Bureau of Labor Statistics lists Utah as one of the country’s leaders in getting people back to work. Last year, Utah’s economy grew more than any other state, and GDP is almost 20% larger than it was five years ago.

Even with a record-breaking 12,367 new rental units under construction and another 9,665 in the pipeline across the state, fewer than 2% of rental units remain vacant. This has increased rent by as much as 10% each year in some places. Last year, Salt Lake City had the tightest rental market in Utah’s history. We expect this trend to reverse in 2023, however, and the increase in residential construction should ease the pain for all renters.

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* Other structures include religious buildings, amusement, government communications, and public recreation projects.
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