Rental prices on the rise in Utah, experts weight in
Jun 16, 2023, 6:30 PM | Updated: Jun 17, 2023, 10:12 am
A for rent sign is pictured in the Avenues in Salt Lake City on Friday, July 16, 2021. Rental prices in Utah have jumped 36% in the last three years, costing Utahns more than ever. Here's what experts have to say(Scott G Winterton/Deseret News)
(Scott G Winterton/Deseret News)
SALT LAKE CITY — Rental prices in Utah have jumped 36% in the last three years, costing Utahns more than ever.
David Eccles School of Business Senior Research Fellow Dejan Eskic says a huge component of rental prices, is supply and demand.
“We’re seeing less construction activity for both for sale and rental units,” Eskic says. “While at the same time, we’re still growing.”
Additionally, he says many young adults are also being priced out of the home-buying market, increasing the number of renters.
According to data compiled by real estate firm Ruby Homes, Utah is the eighth most expensive state in which to rent a home.
Gary Gygi with Gygi Capital Management says you should only be spending about 30% of your paycheck on rent.
“Everything has gone up and mortgage or rent is such an important component of your monthly budget,” he says.
Based on average monthly income, Utahns are spending about 50% of their paycheck on rent, handing over $2,000 a month.
Devin Oldroyd contributed to this article.
