October 13, 2021 (Salt Lake City) – The State of the State’s Housing Market report, released today by the Kem C. Gardner Policy Institute, shows that more than half of Utah’s households are now unable to afford the median-home priced home in 2021. For renters, the path to ownership narrowed further. In 2019, approximately 63.1% of renter households were priced out of the median home price. In 2020, the share of renters priced out increased to 72.8%.
“Our research confirms that Utah is in the midst of a housing shortage, which occurs when the growth in households exceeds the growth in housing units, historically an uncommon condition in Utah.” said Dejan Eskic, Senior Research Fellow at the Gardner Institute. “In addition, housing prices and affordability will likely be persistent themes for some time to come, but other issues are sure to arise, some unexpectedly, like a global health crisis.”
Other key findings from the report include the following:
Despite record increases in prices, a housing bubble looks unlikely—In Utah, both brief and prolonged price declines have always been associated with job losses and recessions. Neither appears likely in the next two to three years. Furthermore, global and national financial conditions are much improved over the 2008–2011 period.
The Utah housing market ha