Housing affordability a problem for renters but not for owners

Housing affordability continues to be a concern among Utah consumers, according to a newly released study from the Utah Foundation. But the concern depends on the status of your residence. While only 4 percent of homeowners feel their housing is unaffordable, a full 25 percent of renters feel that way.

The foundation’s “What’s the View from Your House? Housing Affordability Concerns in Utah” reveals the results of survey findings regarding housing affordability, complementing them with key housing cost data.

Whether housing was personally affordable also varied by geography. About 20 percent of Salt Lake County residents reported personally unaffordable housing while about 7 percent say they can’t afford their housing in the remainder of the state. Income also played a role, with 27 percent of households earning less than $30,000 reporting their own housing is unaffordable. 

The report finds that housing affordability in Utah tends to be a problem for renters, not owners. In fact, on average, housing costs for homeowners have decreased from 2007 to 2017 by 10 percent while rents have increased by 14 percent. 

To put costs in perspective, Utah Foundation compared Salt Lake County to eight other large-metro counties across the West. The comparison revealed that costs in Salt Lake are not out of line and, compared to some counties, Salt Lake looks very favorable.

Key findings of the report include:

• Housing affordability has the lowest rating in the 2018 Community Quality of Life Index. Of the 20 aspects on the index, housing affordability had the largest decline.

• When asked whether they felt their personal housing costs were affordable, only 12 percent of respondents said no. However, in Salt Lake County, that number was 20 percent.

• Respondents with lower incomes, those who are renters and those who live in Salt Lake County were more likely than other Utahns to feel that their own housing is unaffordable. • When adjusting for inflation, Utah homeowners’ monthly costs have decreased by 10 percent since 2007, while renters’ costs have increased by 14 percent.

• More people gave a poor rating to “how affordable housing is for individuals in all income levels” than gave an excellent rating. However, nearly half of the respondents gave neutral responses. 

• When compared to other large metros in the West, Utah’s housing costs are relatively favorable.