The higher rents stem from a dwindling supply of available units, according to the Greater Salt Lake Multi-Family Report, published by Apartment Realty Advisors-EquiMark.

Apartment vacancies in Salt Lake County have fallen from a high of 10.9 percent in 2002 to 4.1 percent - the lowest point since 1996, the report said.

"Without a significant number of new apartment units under construction, we will see vacancies continue to decline and rents will continue to go up," said Jed Millburn, principal of Apartment Realty Advisors-EquiMark, which is based in Salt Lake City.

Vacancies are down and rents are up in Utah, Davis and Weber counties are well, the report shows.

Just a few years ago, the market was tilted overwhelmingly in favor of renters. Due to an ample supply of available units, many Salt Lake County apartment owners were unable to raise rents by any significant amount. In fact, average rents in Salt Lake County barely budged from 2001 to 2005, according to EquiMark data, and landlords had to offer an array of incentives to lure renters. Last year, though, as vacancies fell for the fourth consecutive year, rents shot up 5.1 percent.

Renters now are facing higher rents, fewer, if any, incentives and fewer choices of where to live.

Christine Robison, who moved back to Utah after a year of living in the Dallas area, said she was surprised to see how few rentals there were available in the areas she wanted to live, such as the Sugar House area of Salt Lake City.

"There was hardly anything available to rent in Sugar House - and the ones that are available were too expensive," she said. "A year ago, it seemed like there were a lot of places to rent in Sugar House."

She and a friend ended up renting in an area west of Sugar House with a more ample supply of rentals.

While the market undoubtedly will create more headaches for renters, landlords are benefiting from the change in the market.

"There is no doubt, it's a good time to be a landlord - finally," said L. Paul Smith, executive director of the Utah Apartment Association.

In addition to the rental increases, landlords are benefiting from a larger pool of prospective tenants, Smith said.

"It's a scary market for people with bad credit and people with criminal histories," he said. "When the vacancy rate gets this low, landlords are much more choosy."

Doug Macdonald, executive director of Utah Issues advocacy group, said he's concerned about low-income people.

"This could be difficult for those on fixed incomes or people in jobs where they are not getting regular cost of living increases," he said.

Others, he said, will be able to cope with higher rents because of the recent increase in the nation's minimum wage and wages increases in Utah prompted by the state's tight labor market.

Millburn said a number of factors have driven down apartment vacancies. Chief among them: Increased difficulty for many in buying a home.

In the late 1990s and early 2000s, low interest rates and easy financing fueled an exodus from apartments and other rentals into homes and condominiums. Today both interest rates and home prices are higher, making ownership unaffordable for some.

And tighter lending guidelines imposed in recent months are making it more difficult for many people - especially first-time home buyers - to qualify for a mortgage loan.

Adding to the increased supply of renters is Utah's strong job growth - No. 1 among all states - which is bringing scores of newcomers to the state who are occupying apartments either temporarily or permanently.

Millburn said there hasn't been enough apartment construction to help compensate for the increased demand for apartments.

Due to escalating land prices, developers are finding it more profitable to build condominium developments instead of apartments, Millburn said.

And in a number of cases, apartments are being converted to condominiums, Millburn said, further restricting the supply of available rental units, he said.

lesley@sltrib.com

Salt Lake County rents range from $449 to $915. The breakdown:

* Studio: $449

* 1 bedroom 1 bath: $606

* 2 bedroom 1 bath: $668

* 2 bedroom 2 bath: $851

* 3 bedroom 2 bath: $915

* Salt Lake County average: $697

Source: Apartment Realty Advisors-EquiMark