What it costs to build an apartment complex in Utah in 2026
A 150-unit garden apartment community runs $25 million to $52 million, about $225,000 per unit all-in. On Utah's own rents, vacancy and lending terms the typical case does not pencil. Every figure below has its source; checked October 28, 2026.
Cost to build, typical case
| Land | $4,050,000 |
| Hard cost | $20,250,000 |
| Soft cost | $5,062,500 |
| Contingency | $1,518,750 |
| Interest reserve | $1,518,750 |
| Developer fee | $1,350,000 |
| Total, a 150-unit garden apartment community | $33,750,000 |
| Range, low to high case | $25,219,298 to $51,636,691 |
Garden-style hard cost calibrated so all-in lands at $180k to $280k per unit (Sun Belt), SmartConstructs and Apers 2026; soft, land, fee and interest reserve are added on top. Rule of thumb: $225k per unit all-in needs about $1,900 a month in rent at 94% occupancy and 42% expenses to reach a 6% yield on cost.
Would it get financed
- Loan a lender would size$19,841,102, limited by DSCR
- Rate and amortization6.75%, 30 years
- Equity required$13,908,898 (41% of cost)
- Net operating income, stabilized$1,930,335
- Yield on cost against target5.7% against 6.7%
- Debt service coverage1.25x
Verdict on statewide numbers: Apartments of this size does not pencil at typical cost and rent; the gap is 0.9% of cost in yield.
The Utah market
People and jobs
3,538,904 residents in 2025, growing 1.51% a year since 2020. 1,466,204 private jobs in Q1 2026, +0.7% in a year.
Census Population Estimates (Vintage 2025); BLS QCEW private employment.
Rents and vacancy
Median gross rent $1,405 a month; a new build leases at roughly $1,686 to $2,248. Rental vacancy 5.6%. 321,551 renter households with a median income of $58,038.
US Census ACS 5-year 2023, tables B25064, DP04, B25003, B25119.
Permits in 2025
16,774 single-family homes, 780 units in 2 to 4 unit buildings, and 9,221 apartment units permitted statewide, which is 4.9% of the 188,346 units already in 5+ unit buildings.
US Census Building Permits Survey, state annual file.
Competing supply
586 lessors of residential buildings in Utah, 17.6 per 100,000 residents.
US Census County Business Patterns 2023.
How apartment complex projects get financed
Who lends. Banks and debt funds for construction; Fannie Mae, Freddie Mac, and HUD for the permanent loan once the property is leased.
Typical stack. Typical new build: 25 to 35% equity, 65 to 75% bank construction loan, refinanced into agency debt at stabilization.
SBA. Not SBA-eligible: apartments are passive real estate.
What a lender will ask for
- Market study with absorption and pipeline (HUD MAP Guide chapter 7 for 221(d)(4))
- Sponsor track record and net worth equal to the loan
- Signed GMP construction contract and 5 to 10% contingency
- Interest reserve through lease-up
- Rent comps within 3 miles
HUD and agency lenders require a third-party market study ($7k to $25k) valid 120 to 180 days. This screen is what you run before paying for one.
Assumptions
| Input | Low | Typical | High | Source |
|---|---|---|---|---|
| Hard cost per unit | $115,000 | $135,000 | $165,000 | Garden-style hard cost calibrated so all-in lands at $180k to $280k per unit (Sun Belt), SmartConstructs and Apers 2026; soft, land, fee and interest reserve are added on top (2026) · estimate |
| Monthly rent per unit | $1,328 | $1,500 | $1,900 | RentCafe/Yardi Texas metro averages: Austin $1,328, Houston $1,345, Dallas $1,592; high end is what a new build needs (2026) |
| Stabilized occupancy | 92% | 94% | 96% | CBRE 2026 vacancy 4.4%; Freddie Mac 2026 forecast 6.2% (2026) |
| Operating expense share | 35% | 42% | 50% | NAA Income/Expense IQ 2024: $8,657 per unit; Texas property tax about 32% of garden opex (2024) |
| Lease-up or ramp | 9 mo | 12 mo | 18 mo | Census SOMA Q4 2025: 49% at 3 months, 68% at 6, 80% at 9, 90% at 12 (2025) |
| Exit cap rate | 5% | 5% | 6% | CBRE H1 2026 Cap Rate Survey: A 4.74%, B 4.92%, C 5.38%; Texas +25 to 50 bps (2026) |
| Permanent loan to value | 65% | 75% | 80% | Fannie Mae DUS and Freddie Mac Optigo: up to 80% LTV, 1.25x DSCR (2026) |
| Permanent rate | 6% | 7% | 8% | Agency rates August 2026 (2026) |
| Debt yield floor | 8% | 8% | 9% | Agency and bank convention for stabilized multifamily (2026) · estimate |
| Construction loan to cost | 55% | 62% | 70% | HVS 2026 survey commentary: lenders requiring larger equity (2026) · estimate |
| Debt service coverage floor | 1.2 | 1.25 | 1.35 | Proprise multifamily underwriting primer (2026) |
Questions
- How much does it cost to build an apartment complex in Utah?
- A 150-unit garden apartment community runs $25 million to $52 million all-in in 2026, about $225,000 per unit in the typical case: land $4,050,000, hard cost $20,250,000, soft cost $5,062,500, contingency $1,518,750, interest reserve $1,518,750, developer fee $1,350,000.
- How much of it will a lender finance?
- About $19,841,102 (59% of cost), limited by DSCR, at 6.75% over 30 years. The sponsor brings $13,908,898 of equity. Typical new build: 25 to 35% equity, 65 to 75% bank construction loan, refinanced into agency debt at stabilization.
- Does an apartment complex pencil in Utah right now?
- On statewide numbers the typical case does not pencil: yield on cost 5.7% against a target of 6.7% (exit cap 5.1% plus a development spread). Your city, site and rents change the answer; the $299 Capital Projects screen runs it for your address.
This screen is an informational estimate built from published 2025–2026 benchmarks and public datasets for the county you named. It is not an appraisal, a feasibility study, a market study, an offer or commitment of financing, or investment, legal, tax, construction or financial advice. "Stabilized value" and similar figures are formula outputs (net operating income divided by a benchmark capitalization rate), not opinions of market value. Neur LLC is not a licensed appraiser, broker, lender or engineer. Lenders, the SBA and HUD require independent third-party studies and reports before committing capital; obtain them before you buy land, sign a contract or borrow. Figures are estimates with ranges and will differ from actual bids, rents and loan terms. Use of this screen is subject to neur.co/terms.