Justin’s Take – Should I Rent or Should I Buy?

You’ve heard people talking about the ‘market’ in Utah, but unless you’re a real estate expert, you may not know what exactly that means, or how it applies to you. You’re wondering if it’s a buyers market or a sellers market – and where that leaves you if you’re currently a renter. Sound about right?

Well, here’s a quick what-you-need-to-know: the Utah housing market is HOT, and it’s only on the upswing. The economy is strong and growing, with an upswing of new startups and strong existing companies making a name for themselves along the Wasatch front. With that economic growth comes new residents.

And those residents need houses.

That puts the housing market in a unique situation – there are more buyers than there are sellers, and it’s been that way for a while. In fact, it doesn’t show any sign of slowing down. In 2018, according to the Salt Lake Board of Realtors – the average length of time for a home to be on the market was nine.

So what does that do to the rental market? Well, housing prices aren’t the only thing that’s rising right now. Rental prices are increasing as well. According to KSL, average rental prices are expected to hit more than $1500 this year – an amount that could be put towards the mortgage on a home with the the approximate purchase price of $250,000.

The facts are these:

  • Utah, with it’s Silicone Slopes and technological innovators, is on an economic upswing, and shows no sign if slowing down
  • Because of the rapid rise of technology companies, and comparatively lower cost of living than that of many other cities who have previously cornered the market on tech start-ups, the appeal of all that Utah has to offer has people relocating rapidly
  • To keep up with the need for housing, Utah’s housing boom is an unprecedented high, and shows no sign of slowing down. There’s a high demand for housing, and the market is competitive
  • Competition is driving prices up – both for renters AND buyers, with no sign of slowing down anytime soon.

All that leads up to this: if Utah is the place you’re planning to be for a while, choosing to rent over buy is not saving you any significant money. In fact, you’ll likely spend a similar monthly amount on rent as you would a mortgage payment – with very different long term results.

Are you looking to connect with professionals who can help you navigate this tricky market? We’ve got connections with some of the top agents and lenders in the area, and would be more than happy to connect you.  Give us a call – we’re here to help.