Job losses cause rental turnovers in Park City

(Park Record) University of Utah economist James Wood periodically releases reports on the Utah economy; this month rental units were on his mind.

Even though Utah has the second highest rate of homeownership in the nation, one-quarter of the state's residents rent. According to his July "Utah's Economy," a report commissioned by Commerce CRG, the percentage of renters is expected to increase over the next 10 years. Although only 2,000 rental units are under construction this year, that's almost double what was seen a year ago.

But as in the rest of the real estate market, job losses are taking a toll on apartment complexes and vacancies are on the rise. Also, condominium and town-home builders who can't sell units are renting them out, creating competition for traditional apartment complexes.

Woods, in a separate report for the University of Utah's Bureau of Economic and Business Research, said he also expects to see resistance to rate increases this year as the recession lowers demand.

Even though Park City's rental market is as diverse as its home market, apartment managers all said, to some extent, they're seeing the same things. Vacancies aren't really existent in most Park City complexes because of long waiting lists, but managers said turnover is high.

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