Apartment vacancies fell in 2005

Salt Lake's strong house-price appreciation and job growth in 2005 helped to lower apartment vacancies, according to a report by Hendricks & Partners.

The apartment vacancy rate for the three months ended Dec. 31, 2005, fell to 6.2 percent, down from 6.4 percent in the same quarter in 2004.

Salt Lake's apartment vacancy rate was lower than that of Colorado Springs, Colo., which ended the fourth quarter at 11.3 percent. Denver was at 7.9 percent, and Tucson reported a 7.3 percent vacancy rate.

"More (Salt Lake) renters will be locked out of homebuying as the area's price appreciation remains in the double-digit range," the report said. "Meanwhile, job opportunities will draw a new influx of renters to the region."

The report added that the construction of roughly 1,000 apartment units annually will fail to keep up with demand.

Average rents for all apartment types in the Salt Lake area in the 12 months ended Dec. 31 climbed to $657, up 1.4 percent from $648 in 2004.

In 2005 there were five sales of apartment complexes having more than 100 units at a value of $64,930 per unit, the report said, down from six sales in 2004 at $75,486 per unit.

"Utah noted record high in-migration of nearly 41,000 residents from 2004 to 2005," the report said. "The state's growth has surged with its job opportunities and comparative affordability to places like California and Las Vegas. Combined, these factors resulted in solid demand and stronger rent growth at Wasatch Front apartment properties last year."

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