Fast population growth driving apartment construction in SW Utah
Washington and Iron counties add thousands of rental units to meet Utah's growth
The Grandview Apartments, being developed by Civil Solutions Group in St. George, are nearing completion. Rapid population growth in Washington and Iron counties is driving a multi-family housing construction boom in the southwest corner of Utah. (Courtesy Civil Solutions Group)
Folks are moving to Southern Utah in increasingly growing numbers and apartments seem to be a solution to the corresponding housing demand.
Washington and Iron counties are absorbing thousands of new rental units while maintaining healthy occupancy rates, according to a new report from the Rental Housing Association of Utah.
Utah has experienced a historic apartment boom since the Great Recession, adding nearly 100,000 rental units statewide. Washington and Iron counties have participated heavily in that expansion. About 20 percent of the rental housing inventory in the two counties that anchor the state's southwest corner has been developed during the past seven to eight years, representing approximately 4,400 units in Washington County and 1,100 in Iron County.
But unlike parts of the Wasatch Front, the surge in construction has not resulted in serious overbuilding or widespread weakness in southwestern Utah's rental market. The association reports constant occupancy of 95 percent or higher.
The primary reason for the healthy rental market is growth. Iron County ranks first among Utah's 29 counties in percentage population growth since 2020, while Washington County ranks third statewide in numeric employment growth, adding 19,400 jobs over the past five years.
Washington County now has nearly 22,000 renter-occupied units, making it Utah's fifth-largest rental market. Iron County has more than 6,100 units and ranks seventh. Combined, the two counties represent about 8 percent of Utah's rental inventory.
Apartment construction in Washington County has accelerated significantly since 2017, although development has fluctuated from year to year. St. George has accounted for nearly half of apartment units receiving building permits in the county since 2010, totaling 2,230 units. Washington City follows with 1,120 units, while Hurricane and Ivins have added 565 and 440 units, respectively. Together, the four cities account for 95 percent of the county's apartment development since 2010.
Iron County's apartment boom began later, accelerating in 2021. Nearly all recent development has occurred in Cedar City, which accounts for 97.9 percent of new apartment units in the county. Cedar City reached a record 280 permitted units in 2023 and nearly matched that level in 2025.
But the boom has had its downside for renters. Strong demand has also contributed to rapidly rising rents. From 2019 to 2026, the average rent for a two-bedroom unit increased 71.9 percent in Washington County and 56.7 percent in Iron County, compared with 43.4 percent in Salt Lake County. Washington County rents are increasingly approaching Salt Lake County levels.
Despite all the construction, occupancy remains strong. A survey of property managers and apartment leasing agents conducted for the report estimates occupancy at 95 percent in Washington County and 96 percent in Iron County. Respondents reported no widespread market weakness or serious overbuilding, although some noted that the volume of recent development has increased competition.
The report concluded that the region's strong demographic and economic growth, along with continued enrollment growth at Southern Utah University and Utah Tech University, should allow the market to absorb an annual increase in rental inventory of roughly 3 percent — about 600 additional units per year in Washington County and 200 in Iron County.
For now, the report characterizes southwestern Utah's rental market as healthy and well-balanced between supply and demand, suggesting continued apartment development will be needed to accommodate the region's growth.
As in all markets, apartment demand is influenced by home prices. Apartment demand is expected to continue rising in southwestern Utah as housing prices remain elevated. The median sales price of a single-family home in Utah in 2025 was $564,000, while the median sales price of a condominium or townhome was $430,000. Young households typically purchase homes priced below the median. At 2025 housing prices, only one in six renters could afford a single-family home priced at 80 percent of the median price, and only one in four renters could afford a condominium or townhome priced at 80 percent of the median price, according to the Rental Housing Association report.
The Rental Housing Association of Utah is a nonprofit trade association designed to protect, educate, connect and grow the rental industry in the state of Utah. It represents about 3,500 rental operators and more than 160,000 units.
