Provo multifamily real estate is bolstered by the presence of BYU, as a thriving college town. In fact the university accounts for around 25% of the local population. According to World Population Review, the population in Provo has grown 3.6% since 2010. These factors provide a good foundation for the multifamily market in the Utah city and for multifamily real estate investors considering the area for potential investments.
Archwest Capital puts together the latest multifamily real estate statistics in Provo each quarter covering the top stats for multifamily property cap rates, rentals, sales, and construction statistics.
Within the Provo multifamily report, we also cover the capital market stats with the latest asset value, sales volume, cap rates, and real estate buyer / owner information.
Provo Multifamily Real Estate Market Stats
The total asset value of Provo’s multifamily real estate market is currently $30.1B. The sales volume during the last year was a bit over $2B at $2.1B total with an average sale price per unit of $198K. The cap rate of Provo multifamily real estate is currently 5.1%.
Total Asset Value: $54.5B
Sales Volume (Last 12 Months): $1.5B
Market Sale Price / Unit: $126,000
12 Month Market Sale Price / Unit: -1.1%
Cap Rate: 5.7%
Provo Multifamily Real Estate Sales Volume by Buyer Type & Origin (Past 12 Months)
Below are the respective buyer types and their origins vis-a-vis being a local, national, or international buyer of multifamily property in Provo.
Buyer Type:
Private: 52%
User: 5%
Institutional: <1%
Private Equity: 5%
REIT / Public: 37%
Buyer Origin:
Local: 37%
National: 62%
Foreign: 1%
Provo Multifamily Real Estate Asset Value by Owner Type & Origin (Past 12 Months)
Below are the respective owner types and their origins vis-a-vis being a local, national, or international owner of multifamily property in Provo.
Owner Type:
Private: 4%
User: 24%
REIT / Public: 11%
Institutional: 9%
Private Equity: 52%
Owner Origin:
Local: 57%
National: 40%
Foreign: 3%
Top Provo Multifamily Real Estate Property Statistics
The total amount of multifamily unit deliveries over the past 12 months in Provo is 684 with a net absorption of 1,114 units. The average vacancy rate of all multifamily properties in the area is 4.0% with a 12 month rent growth of 13.8%.
12 Month Deliveries (Units): 684
12 Month Net Absorption (Units): 1,114
Vacancy Rate: 4.0%
12 Month Rent Growth: 13.8%
Key Indicators for Multifamily Properties in Provo Based on Rating
4 & 5 Star
Units: 9,459
Vacancy Rate: 3.9%
Asking Rent: $1,456
Absorption Units: 121
Delivered Units: 0
Under Construction Units: 610
3 Star
Units: 3,078
Vacancy Rate: 3.6%
Asking Rent: $923
Absorption Units: 2
Delivered Units: 0
Under Construction Units: 588
1 & 2 Star
Units: 2,457
Vacancy Rate: 4.9%
Asking Rent: $923
Absorption Units: 2
Delivered Units: 0
Under Construction Units: 0
Provo Multifamily Sales Statistics (Past 12 Months)
Provo had 22 total multifamily properties exchange hands over the last year. The average price for the properties was $4.6M with an average sale of $126K / unit. The average vacancy of the multifamily properties sold was 3.0% at the time of sale.
Sales Comparables: 22
Average Price / Unit: $126,000
Average Price of Multifamily Property: $4,600,000
Average Vacancy at Sale: 3.0%
Top Provo Multifamily Property Sales (Past 12 Months)
The Top 5 Multifamily Transactions in Provo are listed below. They are ranked by the total dollar amount involved in the transaction.
1) *Rating: 3
Year Built: 1991
Units: 167
Vacancy: 1.4%
Price (Unit): $16,000,000 ($95,808)
Price / SF: $133
2) *Rating: 3
Year Built: 2019
Units: 38
Vacancy: 5.3%
Price (Unit): $6,400,000 ($168,421)
Price / SF: $316
3) *Rating: 4
Year Built: 2017
Units: 18
Vacancy: 5.6%
Price (Units): $3,800,000 ($211,111)
Price / SF: $211
4) *Rating: 4
Year Built: 2017
Units: 18
Vacancy: 5.6%
Price (Unit): $3,750,000 ($208,333)
Price / SF: $209
5) *Rating: 2
Year Built: 1975
Units: 18
Vacancy: 0%
Price (Units): $2,700,000 ($150,000)
Price / SF: $169
*Rating is 1-5, 5 being the best
Provo Multifamily Construction Projects Stats
Provo currently has 8 active multifamily properties under construction bringing an aggregate of 1,198 new units to the area. This represents 8.0% of the current multifamily inventory in the Utah city.
Properties Currently Under Construction: 8
Total Amount of Multifamily Units: 1,198
Percent of Inventory: 8.0%
Average # of Units: 150
Top Provo Multifamily Projects Under Construction
The Top 5 Multifamily Projects Under Construction in Provo are listed below. They are ranked by the amount of units added to the total multifamily real estate inventory.
1) Rating*: 4
Units: 430
Stories: Not Listed
Project Completion: Q4 2021
2) Rating*: 3
Units: 308
Stories: 1
Project Completion: Q3 2022
3) Rating*: 3
Units: 142
Stories: Not Listed
Project Completion: Q4 2021
4) Rating*: 4
Units: 142
Stories: Not Listed
Project Completion: Q1 2022
5) Rating*: 3
Units: 64
Stories: 4
Project Completion: Q4 2021
*Rating is 1-5, 5 being the best
Data Sources: Archwest Capital & CoStar
Provo, UT Multifamily Loan Products
Archwest Capital’s commercial real estate experts provide multifamily market insights in Provo with the statistics above, and also have access to various financing options. Learn more about Archwest Capital’s Utah Multifamily Loan Products here. Our team is happy to help with any questions you may have regarding potential multifamily investments in Utah.