Utah remains among the top 10 most expensive states in the nation for single-family homes, according to a report released by University of Utah housing researchers. The report notes that home ownership is increasingly out of reach for many Utahns, particularly first-time homebuyers.
The median sale price for all housing types in Utah rose from $500,000 in the first quarter of 2025 to $520,000 in the first quarter of 2026. According to the University of Utah's Kem C. Gardner Policy Institute, an annual income of nearly $150,000 is required to purchase a median-priced home.
Monthly payments for a median-priced home reached $3,725 in 2025 before decreasing slightly to $3,669 in early 2026. However, these payments remain more than $1,200 higher than monthly payments seen in 2021. Researchers found that 91% of Utah renters cannot afford such a mortgage payment, and less than 5% of homes sold last year were affordable to renters earning the median salary of $64,000.
The housing market is expected to face continued pressure as Utah's population is projected to exceed 4 million by 2035. Researchers state this growth will necessitate 280,000 new housing units. This includes approximately 61,500 units for residents aged 35 and younger, 120,000 for those aged 35 to 64, and 98,000 for those aged 65 and older.
During a panel discussion at the Thomas S. Monson Center, researchers Dejan Eskic and Moira Dillow discussed the findings alongside other officials. Panelists noted that Utah's average home size exceeds 2,400 square feet, which is among the largest in the country. Experts suggested that a shift toward smaller homes on smaller lots might improve affordability as household sizes are projected to decrease from 2.9 persons to 2.6 persons per household over the next decade.
Despite efforts by the Utah Legislature to incentivize the construction of starter homes, some local officials report challenges in implementation. Springville City Administrator Troy Fitzgerald stated that although the city has approved zoning for smaller houses on smaller lots, developers have requested changes to increase home sizes to meet market demand.
