Report: Utah outpaces the nation when it comes to median household income

SALT LAKE CITY — It’s no secret Utah’s cost of living has increased in recent years, but how has household income changed to keep pace with the cost of living?

A new report from the Kem C. Gardner Policy Institute shows the Beehive State’s median household income ranks high compared with other states, with Utah middle-income households earning more on average than middle-income households in other states.

“Consistent with high GDP, personal income is often another measure to look at economic growth,” said Natalie Roney, a research economist at the Gardner Institute.

When adjusting for localized cost-of-living differences between states, Utah’s median household income — of upwards of $98,000 — ranks highest in the country, nearly 27% higher than the U.S. average.

There are a few reasons why this is the case, Roney said.

Contributing to Utah’s top-ranking median household income is the state’s large household size and a high number of individuals in the workforce per household, according to the report.

Roney said in the post-COVID years, Utah has seen large jumps in personal income.

And while Utah’s cost of living has increased, it’s still lower than the national average.

“Not really surprising, Summit County is the only county in Utah that has a cost of living that does surpass the U.S. average and we do see higher cost of living in more urban areas along the Wasatch Front and down in Washington County,” Roney said.

Still, you might be wondering where Utah’s housing market fits into the conversation.

A March poll revealed the price of housing is causing a significant number of Utahns to think about leaving the state for someplace more affordable.

Even though a majority of Utahns, 56%, say housing is too expensive, they aren’t going anywhere. A third agreed with the statement, “Housing is so expensive that I’ve considered moving out of state.”

Roney said Utah’s median household income still ranks so high simply because 70% of Utah households have already purchased homes, meaning their budgets are not directly impacted by higher housing costs.

“For the most part, it’s renters and new buyers that are facing the really high prices, where somebody that bought their home 10 years ago or 20 years ago, their housing prices are much more manageable than those that have recently bought or maybe have seen big rent increases in recent years,” said Phil Dean, chief economist at the Gardner Institute. “It’s kind of looking at that average Utahn rather than the marginal home buyer.”

Read the full story at ksl.com