The housing market crisis: an accurate description
Aug 23, 2023, 9:30 PM | Updated: Mar 11, 2024, 9:48 am
A for sale sign is pictured in front of a home in Salt Lake City (Kristin Murphy/Deseret News)
(Kristin Murphy/Deseret News)
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SALT LAKE CITY — Utah is in a housing market crisis. Is the word “crisis” accurate to describe the current home-buyer situation?
Former Utah legislator Steve Waldrip says it is.
He said that 90% of renters cannot afford a home right now.
“Over the last 10 years. Interest rates, you know, as you’ve seen, have gone up, and affordability has gone down,” said Waldrip.
“It’s just an absolute crisis for anybody who is coming of age,” said Waldrip. “[Potential homeowners] saying, Okay, now I’m ready for the American dream. [but] it is simply out of reach for the vast, vast majority of the citizens in our state.”
In our nation, possessing a home holds the top position as the primary means of savings.
If you’re in, “you’re doing great.” says Waldrip, but if you’re not, that’s when the word “crisis” becomes an accurate description.
What the housing market crisis looks like
The average monthly mortgage in the country is $2,600. But when you look at the Wasatch Front, where the median home price is $500,000, Waldrip said it “translates into a payment an excess of $4,000 a month.”
That’s assuming the homeowner put down the standard downpayment of 20% ($100,000).
“It’s absolutely upside down for most people,” said Waldrip.
Waldrip is working with the Utah Workforce Housing Alliance to increase education about the housing crisis.
Related: Supply and demand: housing market update
