Utah's housing affordability improved modestly over the past year, but homeownership remains beyond the reach of many residents, particularly prospective first-time buyers, according to the latest "State of the State's Housing Market" report from the Kem C. Gardner Policy Institute. The report notes that Utah remains among the nation's 10 most expensive states for single-family homes, and although the estimated income needed to purchase a median-priced home declined slightly, elevated home prices and mortgage rates continue to create significant barriers to ownership.
"Utah's housing market has entered a period of more stable price growth, but stability should not be mistaken for affordability," said Dejan Eskic, senior research fellow at the Gardner Institute. "Meeting Utah's future housing needs will require thoughtful action today to expand supply and deliver options that consider the incomes, ages, and circumstances of Utah households."
Key findings from the report include the following:
Home prices continue to rise moderately - Utah's median sale price across all housing types increased from $500,000 in the first quarter of 2025 to $520,000 in the first quarter of 2026. Utah ranked as the nation's 10th most expensive single-family housing market, with a median price of $559,900.
Most homeowners hold substantial equity - Average equity among Utah homes with a mortgage reached a record of approximately $304,570 in the first quarter of 2026. Delinquencies and foreclosures increased slightly but remained well below long-term averages, while the estimated number of underwater homes fell from nearly 60,000 in 2013 to about 600 in 2025.
Rental trends vary sharply by housing type - From March 2024 to March 2026, average asking rents across Utah's five most populous counties rose 8.5% for detached homes and 8.3% for townhomes. Apartment asking rents declined 2.3% as new supply helped ease pressure in that segment of the market.
Affordability improved, but only slightly - The estimated annual income needed to purchase Utah's median-priced home with a 10% down payment declined from $149,000 in 2025 to $147,000 during the first half of 2026. Rental affordability also improved, with approximately 108 affordable units available for every 100 households earning no more than 80% of area median income in 2025, up from 100 units in 2023.
First-time buyers face persistent barriers - The estimated monthly payment on a median-priced home reached $3,725 in 2025 before easing to a preliminary $3,669 in 2026-more than $1,200 above the 2021 level. Approximately 91% of Utah renters cannot afford that payment, and only 4.9% of homes sold in 2025 were affordable to a renter household earning the median income of $64,000.
Homeownership is nearing historic lows - Utah's homeownership rate stood at 68.3% in 2025, compared with 65.3% nationally. While Utah continues to outperform the nation, its advantage has narrowed over the past decade, with particularly pronounced challenges among households younger than 35.
Smaller homes offer more attainable options - Approximately 26.1% of homes sold in 2025 were affordable to households earning 100% of area median income. The report finds that newer homes become more affordable as home and lot sizes decrease, underscoring the importance of providing a wider range of housing choices.
Long-term demand will remain strong - Utah's population is projected to exceed 4 million by 2035, requiring approximately 280,000 additional housing units. That total includes an estimated 61,500 units for households headed by people age 35 and younger, 120,000 for those ages 35 to 64, and 98,000 for those age 65 and older.
The full brief is now available online.
