Utah County Rental Market Outlook 2025: Exploring the Sluggish Market Dynamics

June 12, 2025

Utah County’s rental market, while still buoyed by strong economic fundamentals and population growth, is showing signs of sluggishness in 2025. I began seeing the signs of this change last year and through the 4th quarter of 2024, and warned my clients to prepare for a shift in gears, temporarily… at least through 2025 for now.  This shift, characterized by higher vacancy rates, increased landlord concessions, heightened competition, and stagnant rent growth, marks a departure from the frenetic pace of recent years, which may landlords and investors have gotten used to and come to expect. But the market is always shifting, bringing with it opportunities and threats that we should all be ready for.  Below, I'll dive deeper into these trends and their implications for renters, landlords, and investors in Utah County’s evolving rental landscape.

Sluggish Market Dynamics

The Utah County rental market, encompassing vibrant hubs like Provo, Orem, and Lehi, has historically been a landlord’s market due to low inventory and high demand driven by the Silicon Slopes tech boom and educational institutions like BYU and UVU. However, 2025 is seeing a slowdown in momentum. A surge in housing supply—evidenced by a 40.8% year-over-year increase in homes for sale as of April 2025, including a 33.3–42.9% rise across various home sizes—has spilled over into the rental sector. New multifamily developments, particularly in urban centers like Provo and Lehi, are adding hundreds of units, tipping the balance toward a more renter-friendly market.

This influx of supply is outpacing demand in certain submarkets, leading to a noticeable softening. While the county’s population is still growing (projected to increase by over 500,000 by 2060), the rapid pace of new construction, expected to peak in 2025 before declining in 2026, is creating a temporary oversupply in some areas. This has cooled the market’s once-red-hot trajectory, with early indicators suggesting a stabilization or even slight decline in rental activity in cities like Provo.

Higher Vacancy Rates

Vacancy rates in Utah County have historically been low, often below 5%, reflecting intense demand and limited supply. However, the influx of new rental units is pushing vacancy rates upward, particularly in multifamily properties. As developers complete projects started during the post-pandemic construction boom, areas like Provo and Orem are seeing vacancy rates creep closer to 6–7%. While still relatively tight compared to national averages (around 6.5% for multifamily units), this uptick signals a shift. Submarkets with newer developments, such as luxury apartments in Lehi, are experiencing longer leasing periods, as renters have more options to choose from. This trend is expected to persist through 2025, especially if construction continues at its current pace, though a projected slowdown in new projects by 2026 may stabilize vacancies.

Increased Landlord Concessions

To attract tenants in a more competitive environment, landlords are increasingly offering concessions. These include one or two months of free rent, waived application fees, discounted parking, or included utilities for new leases. In Provo, where student renters dominate, landlords are also offering flexible lease terms or upgraded amenities (e.g., high-speed internet or furnished units) to stand out. These concessions are most pronounced in newly built complexes, where developers aim to fill units quickly to offset construction costs. For renters, this translates to cost-saving opportunities, particularly for those willing to shop around or negotiate. However, for landlords, concessions are squeezing profit margins, especially for those with high debt service on recently built properties.

Heightened Competition

The rental market’s growing inventory has intensified competition among landlords and property managers. With more apartments, townhomes, and single-family rentals available, properties must differentiate themselves to attract tenants. In high-demand areas like Lehi, where tech workers seek proximity to Silicon Slopes employers, competition is fierce among new luxury developments boasting modern amenities like fitness centers, coworking spaces, and pet-friendly features. In contrast, older properties in Orem or Provo are under pressure to renovate or lower rents to compete with newer units. This competitive dynamic is forcing landlords to invest in marketing, staging, and property upgrades, further eroding margins in a market no longer guaranteed to fill units quickly.

Stagnant Rent Growth

After years of robust rent increases (6.5–7% annually along the Wasatch Front since 2011), Utah County’s rental price growth has stalled. The median rent for a two-bedroom unit in 2025, is up only marginally from last year, and some submarkets, particularly Provo, are seeing flat or slightly declining rents. This stagnation is driven by the increased supply outpacing demand and the affordability ceiling hitting renters hard—only 15% of renter households can afford a modestly priced home ($300,000–$400,000), keeping many in the rental market but limiting their ability to absorb further rent hikes. High mortgage rates (around 6.8%) also deter renters from transitioning to homeownership, maintaining demand but not enough to fuel significant rent growth. Areas like Lehi may still see modest increases due to tech-driven demand, but overall, the market is trending toward stability or slight declines through 2025.

Implications for 2025

• Renters: Take advantage of increased options and concessions. Compare properties, negotiate lease terms, and explore newer developments for deals like free rent or upgraded amenities.

• Landlords: To stay competitive, focus on property differentiation through renovations, competitive pricing, or value-added services. Be prepared for longer leasing periods in oversupplied areas.

• Investors: The current sluggishness presents opportunities to acquire rental properties at potentially lower costs, especially in multifamily sectors, before construction slows in 2026 and tightens supply.

• There's opportunities for everyone

Utah County’s rental market in 2025 is transitioning from a landlord-driven frenzy to a more balanced, competitive landscape. While demand remains strong, the influx of supply, higher vacancies, and stagnant rents are creating a renter-friendly environment. Stakeholders who adapt to these dynamics—whether by securing deals as renters or strategically positioning properties as landlords—will thrive in this evolving market.

Sources: Boots on the ground, Internal local market analyses. web data on Utah housing trends, Fair Market Rent estimates.