Local News
How young people are navigating Utah County housing
Brynn Carnesecca | Lehi Free Press
Home-owning in Utah has never been more out of reach. According to the National Association of Realtors, homes have a median of $440,600, a 1.8% increase from last year. With many young adults trying to settle in Utah, housing can be extremely difficult to afford and purchase.
Some young adults choose to rent, some buy, and some continue living with their parents or another loved one. Bekah Bingham, a Provo resident, has found renting an apartment to be difficult and frustrating. Originally from Kansas, she feels that she pays for more support and help than she receives.
In the last few months, she has dealt with a mice infestation, a broken dishwasher, an excess of spiders and hot water going out for a week.
“I didn’t hear anything [about management] before I moved in, but since then, I’ve only really heard negative things,” Bingham said. “They don’t care about their residents. They own a lot of properties in Provo, and they don’t take care of them.”
While Bingham pays upwards of $500 a month for her portion of a shared space, getting help from the management consistently takes weeks. And, if she or one of her 12 housemates calls to get something fixed, they are charged for a repairperson to come out, whether the problem is resolved or not.
“It’s such a Utah thing,” Bingham shared. “In Kansas…most people have apartments, and it is a lot cheaper in general. Here, there is such a need for housing and so many students need a place to live, that the standards drop very low.”
With all of the difficulties, Bingham cannot afford a house at this moment and feels that renting is her best option.
Aria Nuan, a young Lehi homeowner, has tried to be strategic with her housing decisions. What began with a duplex rental has now grown into being a homeowner with her fiance.
“It was definitely a unique experience that my fiance and I had,” Nuan explained. “We definitely had the perspective that investing in real estate was a wealth-building instrument. We didn’t just look at housing as our housing. We looked at it as an investment into the places we were moving.”
During the house-hunting process, Nuan and her partner considered different options. They weren’t sure if they wanted to do a new build, or fix up a property. Eventually, they decided to purchase a recent build from another couple. The couple is extremely happy to be able to afford a house, but it didn’t happen by chance.
“One of the biggest contributors to being able to afford a home at a young age was not having student debt. Both me and my partner used scholarships and payed a lot of our degrees out of pocket,” Nuan said.
Additionally, Nuan worked multiple jobs during college and high school.
“I think a lot of people assume that you can only achieve [homeownership] if you are privileged. While it does take a lot of privilege, it also takes a lot of work,” Nuan expressed.
Scott Clarke, a first time home-buyer specialist and local realtor echoed similar sentiments. He shared that there are programs in place to help first-time home buyers in Utah that some don’t take advantage of. For first-time homeowners purchasing a new build, the Utah Housing Corporation will provide $20k for the down payment or closing costs. The home price cannot exceed $450k, but the program has helped many young adults purchase homes.
“90% of Gen Z hope to own a home, but 63% think it will never happen,” Clarke said. “So many people think it’s way harder than it is.”
Still, home prices deter many from investing in real estate.
“Right now, 20% of all home purchases nationwide are first-time home buyers, which is the lowest it’s been since 1980,” Clarke explained. “As for Utah, our prices are higher than most places, but that’s not going away anytime soon.”
In the future, Clarke and his team believe that Utah’s home market will continue rising in price. Their prediction comes from other tech-heavy areas, such as Silicon Valley. They encourage people to invest in real estate now before it gets higher.
Clarke also says that, to be a first-time homeowner, someone needs to make around $55-60k a year.
“There is no better way to build wealth than owning a home,” Clarke shared. “More than that, it builds society and helps us to be family-centered.”
That being said, Clarke also recognizes that there are challenges to owning a home.
He said, “It’s way different. Back in our grandparents’ day, the average home price was about 1.2 times the average salary. Now, it’s eight times the average salary. How much we are making and how much homes cost is so different.”
Nuan also encourages people to take a step back and think about if homeowning is truly for them. She believes there is no “cookie-cutter” mold, and that every person’s path is unique and different.
“Look at the holistic picture of everything,” Nuan encouraged. “Homeowning isn’t for everyone. Some want to travel or do other things, and that can be just as valuable as owning a home.”
For more information about Scott Clarke and his team, visit www.realestatehelputah.com, or email him at scottclarke.realestate@gmail.com.
