New apartment supply is currently at its highest level since 1986 when 550,000 units were delivered. While not provided in the article, RealPage reports, “…2023 logged a big increase in deliveries, with nearly 440,000 apartment units completed throughout the year, a 36-year high for the market. For 2024, scheduled completions in the U.S. total another 670,000 or so apartments, which blows past that record volume by about 50%.” Carl Whitaker, multifamily market analyst at RealPage, says in some oversupplied  markets (Salt Lake City) the new Class A units compete directly with upper-tier Class B units. I suppose it makes sense. The article describes the ‘trickle-down’ effect occurring in some markets wherein Class B and Class C units are also being impacted. Salt Lake City is mentioned as one of 12 markets across the country where Class A rent growth outpaced both Class B and Class C growth.    

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

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