More people are renting their homes than buying in Utah and nationwide

SALT LAKE CITY — Today could be considered a renter’s market. In both the United States and Utah, more people are renting their homes than buying them. 

There are two reasons that more are renting, said Utah Foundation President Shawn Teigen: the cost of homes and the cost of borrowing money. Teigen said Americans and Utahns have rediscovered their patience.

“People are, perhaps, a little bit willing to stand by a little bit and wait and see what’s happening, particularly if they’re on the edge of being able to afford something,” Teigen said. 

In October, 2024, real estate company Redfin reported the median sale price for all home types in Utah was $553,100. 

Another Redfin survey found that nationally, the number of renter households grew three times faster than homeowner households in the past year. That’s the fastest rental growth rate since 2015 in the United States.

Still, another survey found that one in five renters spends their entire paycheck on rent.

Teigen said he expects interest rates to continue a roller coaster ride in the new year despite the Federal Reserve’s recent moves to lower their key interest rates. 

Housing prices have doubled since 2016, and increased by 50% since 2020, according to The Utah Foundation, which also reports that housing affordability tops the list of importance to Utah residents.  

Other reading:

• Federal housing vouchers in Utah in high demand
• Utah ranks tenth in the nation for most income spent on housing
• Housing experts say Utah needs to build more starter homes