Lehi-based Entrata releases data on Wasatch Front rentals
Entrata, a comprehensive property management software provider based in Lehi, has released data on renting in Utah that will give renters — and some homeowners — pause.
“The last couple of years have brought a lot of change for the housing market, and Utah was no exception,” said Chase Harrington, president and chief operating officer. “Entrata looked at data from more than 14,000 apartment units in Weber, Davis, Salt Lake, Utah, and Washington counties, from January 2019 to July 2021, and the results were very interesting.”
The data shows that during that two-and-a-half-year time period, which includes more than a year of the COVID-19 pandemic, average rent paid in those counties increased by more than 45%.
Utah County was by far the largest increase at 66%, Salt Lake County was the lowest at 23% with Weber County at a 35% increase, Davis County at 59% and Washington County at 43%.
Some of that can be attributed to the lack of supply versus the demand and the amount of high-paying tech jobs that have come into the area, particularly in Utah County.
One of the biggest changes to the rental market is the way leases are handled. In the past, you typically signed a year-long contract with a few accepting six-month contracts.
However, according to Entrata’s data, the number of month-to-month leases in the five major Utah counties has increased by a massive 330% in just over a year and a half.
“The pandemic spurred much of this growth, and Entrata is seeing more and more renters putting the flexibility of short-term leases above other perks and amenities,” Harrington said.
It appears that the Millennial and Gen-Z age groups are seeking more flexibility in renting. They are more likely to spend time away from their dwelling either working or enjoying recreational activities and fewer are choosing to have children until later in life or not at all.
The percent increase in month-to-month leases for each county shows Utah County with the highest increase at 633%, with Weber County at 100% increase, Davis County with a 266% increase, Salt Lake County at 553% and Washington County at 100%.
Data shows renters are moving the time they pay those rents to the last week of the month rather than on the first of the month. The increase has been about 357%.
Rents, like mortgages, should only take about 30% of one’s monthly income which also includes utilities in that percentage.
In Utah County, rent for studio apartments start as high as $1,000 a month with two bedroom, two bathroom dwellings as high at $1,500 or more. If you want a three bedroom, two bathroom place start looking well above $2,000 a month.
“This highlights that many residents may need to pay rent later in the month to make rental payments, as well as property managers generously waiving late fees during the pandemic,” Harrington said. “Similar to a month to month leases, this was spurred on by the pandemic and has continued into this summer.”
In fact, between 2020 and 2021, the amount of rent paid during the last week of the month has decreased by just 10%, showing the long-lasting effects of the COVID-19 on the rental market and economy, according to Harrington.
Isaac Hale Daily Herald
The percent increase in those who paid rent during the last week of the month for each county is: Utah County with a 442% increase, Weber County with a 310% increase, Davis County with a 21% increase, Salt Lake County with a 546% rise and Washington County with a 77% increase.
Entrata, founded in 2003, offers online tools including websites, mobile apps, payments, lease signing, accounting and resident management. The Entrata platform currently serves more than 20,000 apartment communities nationwide. Entrata’s open API and selection of third-party integrations offer management companies the ability to choose the technology and software that fit their needs.
To learn more about Entrata and its technology, visit http://entrata.com.