Utah's affordable apartments vanish
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Utah's affordable apartments are disappearing as luxury rentals multiply, according to Harvard researchers.
Why it matters: Renters already burdened by high costs have fewer low-priced options.
By the numbers: Between 2013 and 2023, units renting from $600 to $999 a month in Utah (adjusted for inflation) fell by around 53%, per a report by Harvard's Joint Center for Housing Studies.
- Meanwhile, a building boom of upscale apartments helped the number of units costing more than $2,000 a month jump more than 600%.
The big picture: The majority of Salt Lake City residents are renters, and half spend over 30% of their income on housing, according to figures from the city's five-year housing plan released in 2023.
Meanwhile, homebuying is out of reach for many. More people are renting, which has kept rents high even as hikes ease.
- Add to that high prices for land, building materials and labor. "To be profitable, most of these [new] units must command steep rents," researchers wrote in the report.
Reality check: The surge in high-end apartments can still benefit lower-income renters, the researchers noted.
- For one, areas with lots of new construction over the past few years, particularly in the South and West, saw rent increases slow or outright decline.
- And when higher earners move up, older, cheaper units may become available.
What we're watching: Nationally, with less new construction happening lately, rent hikes could ramp up again, further straining budgets.