The Astra Tower on 200 South in downtown Salt Lake City (center) is one of many new residential options for people moving to the city's center. Opened in 2024, the building has nearly 400 residential units as well as luxury amenities. The residential population of downtown grew 63 percent between 2019 and 2025, according to a new report from the Downtown Alliance. (Courtesy HKS Architects)
Downtown Salt Lake City used to be just an exciting place to visit — go see the lights on Temple Square, take in a sporting event or maybe a Utah Symphony concert at Abravanel Hall, or spend more than you should for an anniversary dinner.
But that is rapidly changing, according to the Salt Lake City Downtown Alliance's "2026 Economic Benchmark Report" published earlier this month. The alliance, a business partner of the Salt Lake Chamber, said that downtown is quickly evolving from a strictly business district to a genuine urban neighborhood.
In just over a year, between 2024 and 2025, the downtown residential population rose a full 9 percent, the report said. Even more stunning is that the city center's residential population grew 63 percent between 2019 and 2025, reflecting a significant post-pandemic shift. Meanwhile, downtown office occupancy continues to lag behind pre-pandemic levels.
In its commentary on the study, the Downtown Alliance posits that this demographic shift is fundamentally changing downtown's identity. Executive Director Dee Brewer describes the area as moving from a "vertical office park" to a true neighborhood where residents provide the consistent activity needed to support restaurants, grocery stores, retail shops, entertainment venues and public spaces around the clock, not just during business hours.
The Salt Lake City Downtown Alliance is a nonprofit organization founded in 1991 that represents more than 2,500 business and property owners. It promotes downtown as the region's cultural and economic hub, coordinates the Downtown Street Ambassadors for public safety, and supports major community events like the Downtown Farmers Market.
And the change in downtown Salt Lake City may be just the beginning. The area is expecting as much as $10 billion in new investment over the next decade.
The Church of Jesus Christ of Latter-day Saints is spending millions to prepare for next year's open house of its overhauled Salt Lake Temple. The church is preparing the area around Temple Square for the anticipated "millions" of visitors — up to 20,000 per day between April 5 and the end of September.
But the church's spending is a drop in the bucket compared to the expected cost of preparation for the 2034 Winter Olympic and Paralympic Games, Ryan Smith's revamp of a new sports and entertainment district surrounding the Delta Center, the renovation of the Salt Palace Convention Center and as many as 26 other downtown projects.
The Economic Benchmark Report describes the coming years as downtown's "most consequential decade in more than 100 years."
The report also offers a peek into who these folks are that are moving downtown. It says the new population is notably young and educated, with more than half under the age of 30 and a majority holding at least a bachelor's degree. These demographics suggest continued demand for walkable neighborhoods, transit access, entertainment, dining and mixed-use development. The diverse population also strengthens downtown's attractiveness to employers seeking to recruit highly educated workers.
The vast majority of the new downtowners commute less than 10 miles from home to work, the study found. Compared to other Wasatch Front residents, they're more likely to not be married nor own a car.
According to the study, residential growth has also helped fuel broader economic gains. Consumers spent $2.1 billion on downtown shopping, restaurants, entertainment and accommodations during 2025 — a 6.1 percent increase over the previous year. Total customer activity reached 30.7 million customer days, reflecting stronger visitation by residents, workers and tourists alike. Attendance at ticketed events also climbed substantially, reinforcing downtown's role as Utah's cultural and entertainment center.
But the downtown excitement is not without challenges, and the report addresses some of them.
Office vacancy rates remain stubbornly high as hybrid work brought on by the pandemic continues to reshape demand for commercial space. The upcoming multi-year closure of the Salt Palace Convention Center for renovation will temporarily affect convention business and visitor traffic. The alliance also identifies a shortage of parks, trees and other green spaces — currently accounting for less than 2 percent of downtown's land area — as a priority for future investment to make the area more inviting for residents and visitors alike.
The Economic Benchmark Report presents an overall optimistic outlook for the alliance's downtown contingency. The study suggests that long-term vitality will increasingly depend on building a place where people choose to live. The rapid growth in residential population is creating a more resilient downtown economy, one less dependent on the traditional nine-to-five workday and more capable of sustaining businesses, cultural institutions and public life throughout the year.
If the current trend continues, the report suggests that downtown Salt Lake City is well on its way to becoming one of the Intermountain West's strongest examples of a mixed-use urban neighborhood.
