Utah Housing Coalition Analysis: What We Pulled From Utah’s 2025–2026 Housing Market Report

The Kem C. Gardner Policy Institute’s State of the State’s Housing Market: 2025–2026 shows a Utah housing market that is beginning to stabilize—but remains deeply unaffordable for many renters, first-time homebuyers, and lower-income households.

For the Utah Housing Coalition, a few findings stand out most.

Utah’s median home price across all housing types reached $520,000 in Q1 2026, up from $500,000 a year earlier. The median single-family home price reached $559,900, making Utah the 10th most expensive state in the country for single-family homes.

At the same time, the income needed to purchase a median-priced Utah home remains extremely high. The report estimates a household would need roughly $147,000 annually with a 10% down payment—up from just $58,000 in 2016.

Perhaps most striking, about 91% of Utah renters are priced out of a median-priced home. In Salt Lake County, 90.8% of renters are priced out; in Utah County, that figure rises to 94.3%. See pages 14–15, Figures 28–29.

Rental affordability is improving—but not for everyone

The report finds that apartment asking rents declined 2.3% between March 2024 and March 2026, while rents for single-family homes and townhomes increased 8.5% and 8.3%, respectively.

That suggests new apartment supply is helping in parts of the rental market. But the picture changes dramatically for households with the lowest incomes.

In 2025, Utah had:

• 108 affordable units per 100 households at or below 80% AMI

• 76 units per 100 households at or below 60% AMI

• 50 units per 100 households at or below 50% AMI

• Just 6 units per 100 households at or below 30% AMI

That last number is especially important for affordable housing providers, public housing authorities, homelessness organizations, and renter-serving nonprofits. More market-rate housing can improve overall conditions, but it does not replace the need for deeply affordable housing, rental assistance, and preservation. See pages 14–15, Figures 30–31.

First-time buyers are facing a particularly difficult market

Utah’s homeownership rate remains above the national average, but that advantage is shrinking.

Homeownership among Utah households under age 35 declined from 42.9% in 2014 to 41.3% in 2024, while the national rate for that group increased. Younger Utah households were the only age group in the state to experience a decline over that period.

The report also shows that buying is currently much more expensive month-to-month than renting. In early 2026, homeownership carried an estimated $1,400 monthly premium over renting along the Wasatch Front. See pages 14 and 16, Figures 27 and 33.

What we build matters

One of the report’s strongest policy takeaways is that affordability is closely tied to home size and lot size.

Among newer homes, properties affordable at lower AMI levels were consistently smaller and built on smaller lots. Homes affordable at 80% AMI had a median size of about 1,272 square feet, compared with 3,379 square feet for homes affordable above 120% AMI.

The report argues that increasing the supply of homes below roughly $450,000 will be important for maintaining entry-level homeownership opportunities.

This reinforces an important point: solving Utah’s housing shortage is not only about increasing the total number of units. The type, size, price point, and location of those units matter. See pages 17–18, Figure 34 and Table 8.

Utah will need nearly 280,000 more homes by 2035

The pressure is not going away.

Utah is projected to add roughly 280,000 households by 2035, or about 28,000 net new households per year. More than 81% of that growth is expected in Salt Lake, Utah, Davis, Washington, and Weber counties.

The state will need housing across every age group, including approximately 61,600 additional units for households under 35, 120,000 for households ages 35–64, and more than 98,000 for households age 65 and older. See pages 19–20, Figures 36–38 and Table 9.

What UHC is taking from the report

The report shows signs of progress: more housing is being permitted, apartment rents have softened, and price growth has slowed. But Utah remains a high-cost housing market with major barriers to homeownership and a severe shortage of deeply affordable rental housing.

For the Utah Housing Coalition, the key takeaway is clear: Utah needs more housing, but it also needs the right housing.

That means continuing to increase overall supply while also expanding deeply affordable rental housing, preserving existing affordable units, supporting renters, creating smaller and more attainable ownership options, and planning for continued population growth and an aging population.

The full State of the State’s Housing Market: 2025–2026 report is available from the Kem C. Gardner Policy Institute.