Multifamily housing trends: What renters and buyers should know

As home prices in Utah continue to lead the nation, demand for multifamily housing remains strong.

The median selling price of a single-family home in Utah was $575,300 in the first quarter of 2026, according to Redfin, up almost 5% over last year. If that seems high to you, you’re right. The local housing market is among the most expensive in the nation, with the national median hovering around $440,000. 

When you consider home prices combined with high interest rates — in the low-to-mid 6% range — it’s no wonder Utah housing market trends show people are sticking with multifamily housing over home ownership.

What is multifamily housing?

Multifamily housing is a growing and integral part of today’s housing market. It offers renters a more affordable place to live, and it offers investors an opportunity to earn additional income.

A building is considered multifamily if it includes more than one dwelling unit in a single edifice. That includes:

• Apartments
• Condominiums
• Townhomes
• Duplex/fourplexes

Duplex units and apartments are the most commonly offered rentals. Still, while many condos and townhomes are privately owned, they are often listed as rental options as well.

Browse multifamily rental listings on KSL Homes

Families looking for a bit more room might rent a duplex or large apartment.

Who lives in multifamily housing?

Demand for multifamily units is not unusual in Utah, due in part to our varied demographics.

Apartments for rent have always been popular for people seeking short-term housing. Renters may be just starting out or living in an area temporarily. There’s also the student population — thousands of people needing a place near one of Utah’s six universities, or at least one close to public transportation.

But recent rental housing trends show that apartment living isn’t necessarily temporary for everyone. Many renters choose apartment living because they want to, not because they need to. They want to be closer to city centers, where there is an active nightlife, restaurants and entertainment. 

Retirees who are looking to downsize may opt for a townhome, often in retirement neighborhoods. Like apartment dwellers, they appreciate access to luxury perks such as pools, fitness centers and gathering spaces in their rental communities.

Busy couples and young families may choose to rent a condo to have a bit more space, but without the maintenance demands of a house.

Similarly, many families who aren’t ready or can’t afford to purchase a single-family home may consider a duplex/multi-unit property. It offers multiple bedrooms so there’s room to spread out, as well as outdoor space for their kids to play.

Some renters prefer apartment living because they enjoy access to amenities such as swimming pools.

How much are Utahns paying in rent?

While housing prices remain high, Utah’s rental rates are lower than the national average for the first quarter of 2026. In Salt Lake City, the average rent is $1,604, according to Zillow — lower than the rest of the West.

Typical monthly rent across the U.S. was $1,910 in March, up 1.8% over 2025. Prices are expected to “hold steady,” per Rental Report 2026.

More rental units, fewer rent hikes in Utah

Rent has jumped 19% in Salt Lake County since pre-Covid days, but increases seem to be slowing down. That may be due to new construction in recent years, helping to fill the steep demand for rental units.

Across Utah, building permits were issued for 15,503 multifamily units in 2025, according to the Kem C. Gardner Policy Institute Database. Permits for another 2,614 units were granted in the first two months of 2026.

How do Utah’s rental prices compare to home ownership?

Redfin reports the average mortgage payment in Utah is $1,775 — not much higher than the average Utah rent. But that doesn’t factor in property taxes and insurance and utilities. Nor does it include the initial down payment and closing costs required to buy a home, something that often prices out first-time homebuyers.

Apartment living is popular with people just starting out or those who don't need much space.

What does rental demand mean for investors?

While owning a single-family home may be part of the American dream, the demand for multifamily housing continues to be a growing, long-term trend. It’s likely there will always be people looking for either short-term housing, close proximity to city centers or care-free living — or all of the above. 

Because demand for multifamily housing is steady in Utah, ownership of rental units can be a smart financial strategy. And a multifamily unit is usually a lower-risk investment overall.

While you may be able to charge more rent for a single-family home, you’ll see a pause when it remains vacant. With multiple tenants, you should have consistent rental income to help cover mortgage, insurance and maintenance costs.

Browse multifamily units for sale on KSL Homes

Why multifamily rentals are valuable

As demand for housing continues, multifamily rentals continue to provide a reliable option for many. For renters, they provide the opportunity to live in desirable areas at an affordable price. For property owners, they can create long-term, steady income.

See all multifamily rentals on KSL Homes