(Photo: John Raoux / Associated Press / File)
SALT LAKE CITY — Some prospective first-time home buyers have been forced back into the rental market due to high prices. As a result, the extra competition for rentals has caused a spike in rent costs.
According to a Redfin report, rent prices have jumped 14% in Salt Lake City since last year. That number is expected to drop to a rising rate of 7%, but that is still higher than the expected increase in mortgage rates, which is only 3.3%. Research by John Burns Real Estate Consulting says there may be an ease on the market upcoming as many looking to sell their homes switch to a strategy to rent.
The median rent price for Salt Lake City was $1,184 in 2019. This year, the median rent price is $1,475. That’s an increase of almost $300 in just three years.
There is an expectation that rent increases will begin to slow, but increases, in general, are expected to continue. With Salt Lake City officials approving an increase on property taxes, those in Utah’s housing market can expect the cost of living to continue to rise.
Chris Jacobs contributed to this report.