The official rental vacancy numbers for Salt Lake City should be out in the next three to four weeks, so these numbers are not yet set in stone. That said, my associates from several property management companies in town suggest our vacancies will rise just 1/2% to 5%.... in the first half of 2008, the rate at which markets are considered FULLY RENTED. This is fantastic news for investors who are eyeing deals and are counting on an uninterrupted rental stream to make those nasty mortgage payments.
In 2007, Salt Lake City rental vacancies were 4.5%, with an 8.8% growth in rental rates. Local property managers suggest landlords continue to raise rents in the first half of 2008, up between $60-$80 for remodeled and/or updated residential units. This momentum is especially striking comparing our market to others in the West. For example, Phoenix rental vacancies stand at 11.5% for the first quarter of 2008, up from 9.6% in the first quarter of 2007!
Looking Forward
As long as our employment numbers hover around the May 2008 figure of 1.6% (US Bureau of Labor Statistics), housing inventory should continue to decline and home prices will stabilize. That said, the May figure was slightly lower than predicted, so June's number will be telling about the road ahead. I'll be updating this figure as soon as it's out in mid-July, but continue to believe we will see moderate growth in the near term.
Best,
Matt
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