Report: Renting remains significantly cheaper than buying in Utah

Families that think they will never be able to afford buying a home in Utah may be right. At least that’s the conclusion of a study presented to attendees at an economic event hosted by the Rental Housing Association of Utah. 

The Kem C. Gardner Institute presented new analysis, using data from UtahRealEstate.com and RentRange, that reveals the widening affordability gap between renting and owning a home in the state. 

As of August 2025, the median monthly mortgage payment for a single-family home in Salt Lake County was $3,603, compared to a median monthly rent of $2,475 for a single-family home. This represents a premium of more than $1,100 per month for households choosing to buy rather than rent.

And the affordability challenge extends beyond monthly payments. According to the study, 88 percent of Utah renters as of August 2025 cannot afford the state’s median-priced home of $520,000. In Salt Lake County alone, the income needed to afford the median-priced home reached $153,000 in 2024 — a figure far above the median household income.

“This analysis highlights the financial reality many Utah families are facing,” said Paul Smith, executive director of the Rental Housing Association of Utah. “Renting continues to be the only feasible option for the vast majority of Utahns, even as they aspire to homeownership. These affordability pressures underscore the critical need for more housing supply and policies that support both renters and future homeowners.”

Smith said the Rental Housing Association emphasizes that while renting remains significantly more affordable than buying, both renters and aspiring buyers face challenges in today’s market. He said the association is committed to working with policymakers, industry leaders and community partners to address the state’s growing housing affordability crisis.

Utah ranks as the 10th-most-expensive state for median home prices, according to the National Association of Realtors.

The Gardner report found that Utah’s rental market recently finished a historic growth phase, bringing more housing options for renters and setting the stage for long-term opportunity for property owners and landlords. From 2019 to 2023, an average of 10,000 rental units were approved annually — the largest increase in the rental supply in Utah’s real estate history. In 2021 alone, more than 14,000 units received permits, helping to expand Utah’s rental inventory during a time of limited availability.

From 2019 to 2023, authorized apartment units outpaced demand by about 4,000 units. Many of these are now in the lease-up phase, causing higher vacancy rates — especially in downtown Salt Lake City.

However, this overbuilding will be short-lived. Apartment development in the county dropped sharply in 2024, with only 1,268 units permitted — far below the 4,900 needed to meet annual demand.

For renters, this increase in supply brings more choice, improved amenities and greater affordability, especially in key counties like Salt Lake, Utah, Davis and Weber.