Low interest rates over the past three years have allowed many people to move from rental properties to homes in Utah. Low interest rates made monthly mortgage payments on entry-level homes comparable to many monthly rents. However, the home buying trend should be leveling off very soon. According to Jeff Thredgolf, an economist for Zions Banks in Salt Lake City, The exodus of renters from apartments to their first homes has neared an end. While speaking to members of the Utah Apartment Association Tuesday, Thredgolf continued, Low interest rates for three years means that the majority of people who had the ability to move from rental properties to homes already have done so.

This has been welcomed news for the state’s landlords, who saw their vacancies jump in recent years. In fact, many have had to lower rent in order to attract renters. Overall, the share of vacant rental units in Salt Lake County has dropped to 9.4 percent so far this year from 9.9 percent in 2003 and 10.9 percent in 2002, according to EquiMark Properties, which publishes the Greater Salt Lake Multi-Family Report. The average rent in Salt Lake County is unchanged from last year, a positive development for landlords who saw average rents decline 2.4 percent from 2002 to 2003.

Thredgolf was also quick to point out that the good news of apartment owners does not mean bad news for home sellers. Today's higher interest rates, combined with an improving economy that brings job growth and more new residents to Utah. Although Interest rates are beginning to increase, the real estate market remains quite active. Homes and apartments will start to see their properties appreciate, especially in the mid- and higher ranges. President of the Salt Lake Board of Realtors, Jim Bringhurst says, There's a lot of buyers out there right now….. there's a shortage of listings….. I'm working with a lot of buyers out there right now who are frustrated there aren't choices out there.

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