Housing costs now exceed 30% of income, Utah faces steep affordability gap

A new Salt Lake Board of Realtors report shows median home prices at $645,000 and a required salary of nearly $187,000 to afford a house, while Americans now spend over 30% of their income on housing.

A recent mid-year report released by the Salt Lake Board of Realtors reveals that the median home price in Salt Lake County has risen to $645,000, meaning a buyer would need an annual salary of almost $187,000 to qualify. The analysis describes the market as a "perfect storm" driven by a housing shortage, relatively high interest rates and unprecedented price levels, and forecasts a deficit of 153,000 homes by 2030. Nationwide, the share of income devoted to housing has climbed to over 30% for both renters and owners, compared with 15-20% in the early 1960s, according to econofact.org.

Governor Spencer Cox acknowledged during an August news conference that his goal of constructing 35,000 new starter homes by 2028 has not been met, with KSL reporting just over 7,400 completed. Policy experts, including Will Fischer of the Center on Budget and Policy Priorities, argue that reducing zoning constraints and offering incentives could temper price growth, citing an 11% price drop in Austin after a building boom.

However, factors such as Canadian tariffs on building materials and local political resistance to higher-density projects continue to impede progress. The piece concludes that while 1962-era affordability may be unattainable, addressing the current affordability crisis remains essential for younger generations.