Local News
Utah ranks third in nation for unaffordable housing
The average personal income for a Utahn is $63,000–a stark contrast to the average home price of $533,000. This massive difference has landed Utah firmly as one of the most unaffordable states in which to own a home, surpassed only by California and Hawaii. The Beehive State now ranks higher than notoriously expensive states like Washington and Colorado.
A study published recently by bestbrokers.com shows just how deep the crisis runs, with the average personal income covering only 11.83% of the average home price in Utah. These numbers also fail to account for actual income being lower because of taxes and actual home ownership costing even more due tothings like necessary repairs and closing costs.
The housing crisis is proving to cause serious problems for the average person who wants to own a home, especially impacting young people who didn’t have the chance to buy a home when the market was more affordable.
According to the study, “The average age of homebuyers has also risen, with the typical buyer now 44 years old, compared to 25-34 in 1981. In the past, people were more able to afford mortgages as borrowing money was cheap, but this is no longer the case.”
States that fall on the opposite, more affordable end of the spectrum, include North Dakota, Iowa, Illinois, Ohio and Kansas.
The study states, “Homebuyers looking for a bargain might find success in the Great Plains. … North Dakota’s housing market should be able to offer individuals the opportunity to invest in properties without straining their finances.”
The study concluded by reminding prospective home buyers that the list accounts only for median prices, and that the “American Dream” of owning a home may still be within reach depending on the area and time of year.
“It’s essential to explore various cities, suburbs, towns and rural areas to find options that fit your budget since, as we saw, housing affordability varies. Another thing to bear in mind is seasonality as it impacts property prices as well—they typically peak in June and decline towards winter,” the study concludes.
