FOR IMMEDIATE RELEASE

Contact: Nick Thiriot, Kem C. Gardner Policy Institute, nick.thiriot@utah.edu, 801-842-9150

July 8, 2025 (Salt Lake City) – The 2024-2025 edition of the Kem C. Gardner Policy Institute’s State of the State’s Housing Market report provides a detailed analysis of current housing market conditions in Utah. The report indicates that high but stable housing prices characterized the state’s housing market in 2024, with Utah ranking as the country’s 9^th most expensive housing market that same year. Stable prices, however, offered little relief to potential homebuyers as high interest rates and housing prices excluded many households from homeownership.

“Utah housing prices and rents showed little-to-no growth in 2024,” said Jim Wood, Ivory-Boyer Senior Fellow at the Gardner Institute and lead author of the report. “Home sales and listings increased, and residential construction declined as apartment developments tumbled. Slower economic growth presented challenges for Utah’s homebuilding and real estate industries but helped to dampen price increases for potential homebuyers.”

Key findings from the report include the following:

High but stable prices – Home prices in Utah have increased less than 1% since 2022; however, the state still ranks as the country’s 9^th most expensive housing market. The median sales price of a single-family home statewide was $547,700 in the fourth quarter of 2024.

Stable rental rates – Rental rates showed little change in 2024 and declined in some submarkets. The average rental rate (composite of all unit types) in Salt Lake County increased from $1,582 in 2023 to $1,593 in 2024, less than a 1% increase.

Housing affordability – The median multiple ratio measures the severity of housing affordability by dividing the median sales price of a home by the median household income. 2024 median multiple ratios show Washington and Salt Lake counties as severely unaffordable (with ratios above 5.1) and Weber, Davis, and Utah counties as seriously unaffordable (with ratios between 4.1 and 5.0).

High-density units hit record highs – High-density units (condominiums, townhomes, and twin homes) accounted for 28% of all existing residential sales and 28% of residential construction in 2024. Statewide, the median sales price of a condominium in 2024 ($409,900) was 27% below the median price of a single-family home.

Eagle Mountain leads on building permits – Eagle Mountain issued building permits for 1,556 residential units in 2024, the highest level of any Utah city. The second-ranked city, Saratoga Springs, issued permits for 1,354 units, and the fifth-ranked city, Lehi, issued permits for 1,036 units. These three northern Utah County cities accounted for 18% of the residential units receiving building permits statewide in 2024.

Sales of existing homes and listings increased – A larger number of sellers entered Utah’s market in 2024 as average monthly listings returned to pre-COVID levels (8,000 to 9,000 active listings). Home sales also received a boost from cash buyers who were not deterred by high mortgage rates. Nearly 18% of all home sales in Utah were cash purchases in 2024 (6,724 homes). Sales statewide reached 37,641 homes, up 7% in 2024.

Housing demand headwinds – Economic uncertainty and slower rates of demographic and economic growth will hinder housing demand in 2025. Residential construction, existing home sales, housing prices, and mortgage rates will continue at near the same levels as 2024. Projections include approximately 23,000 new residential units, 36,900 sales of existing homes, a 2% increase in the median sales price of a home, and mortgage rates fluctuating in a narrow range of 6% to 7%.

The full report is now available online.

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