How much do you have to earn to afford Salt Lake County’s median-priced home? Now it’s over 6 figures
Posted On January 14, 2022
In a matter of six years, the annual income needed in order to afford the median-priced home in Salt Lake County has nearly doubled.
Let that sink in.
In 2015, the median-priced home in Salt Lake County cost about $248,400. The annual income required to buy a home with that price tag was about $58,100, according to the Salt Lake Board of Realtors.
Now fast forward to 2021. Homebuyers needed to earn over $100,000 a year — $101,400 — in order to afford Salt Lake County’s median-priced home of $460,000, the board said in a report released Wednesday.
“The 2021 Salt Lake and Utah housing markets will be long remembered for their record-breaking price increases,” according to the report.
2021: The year of the ‘shocking’ home price in Utah
In 2021, Salt Lake County’s median price of homes sold climbed 22% compared to the median price of $378,250 in 2020. For single-family homes sold in 2021, the median price soared past even the half million mark to $533,000, up a staggering 25% compared to single-family homes price of $425,000 in 2020, according to the Salt Lake Board of Realtors.
“Statewide, housing prices increased by 27%, shattering the 43-year-old record of 20.1% set in 1978,” the board stated.
Twenty-four of Utah’s 29 counties had double-digit gains. In 2021, Utah’s 700,000 homeowners realized an increase in the home equity (wealth) of at least $82 billion.
Utah and the Salt Lake City metro area remain high on the nation’s list of hot housing markets.
The Salt Lake City metro area ranked No. 6 in highest house-price increases among the nation’s top 100 metro areas through the third quarter of 2021, with 28.1% year-over-year growth in prices, according to the Federal Housing Finance Agency. Housing prices in the Salt Lake City area are now higher than 87% of all major U.S. metropolitan areas.
Boise, Idaho, Utah’s closest housing competitor in the West, ranked No. 1 on the same list with 37.3% year over year growth in prices.
No. Experts still don’t predict a slowdown or foresee a bubble about to pop.
“There’s no sign yet of a slowdown. For the past nine months, prices have consistently increased at over 20%, when compared to the same month a year earlier,” the Salt Lake Board of Realtors stated. “In December, prices were up 24%, just slightly below the largest gain of 27% in June.”
Despite soaring prices, the board says “there is no sign of a housing bubble.”
“In the aftermath of the Great Recession, Utah housing prices fell by 15.6%,” the group stated. “This is the only instance in the past 75 years of housing history when price declines lasted more than a few consecutive quarters. There were two single-year declines during the 1950s, a single-year decline in the 1960s, and a few consecutive quarters in 1983 and 1987–1988.”
Experts predict home prices will continue to climb in 2022.
“Count on a 10-12% increase,” the Salt Lake Board of Realtors said.