Estimated read time: 2-3 minutes
- Salt Lake City residents need 23.7 years to save for a home down payment.
- High home prices, rising interest rates and stagnant incomes contribute to this delay.
- Shane Stewart suggests starter homes and refinancing to make home ownership attainable.
SALT LAKE CITY — If you dream of home ownership in Salt Lake City, you may be in for a rude awakening.
New data shared with the KSL Investigators from Upgraded Points finds that the typical Salt Lake City household would need 23.7 years to save for a down payment on a median-priced home. So, set your alarm for the year 2049.
Home ownership more out of reach
"We've actually been seeing this coming," said Shane Stewart, certified financial planner with Deseret Mutual Benefits Administrators. "What was a surprise to me is if you stick within those — how long it takes."
Twenty-four years is nearly twice the national average. So, why is Utah doubling the pain? Blame a potent cocktail: fast-rising home prices, mortgage interest rates that shot up post-2022 and incomes that can't keep up.
"The average home is getting a little more out of reach for the average person," Stewart said.
Don't give up
But before you abandon the American dream, saving for the "average home" doesn't necessarily mean renting and trying to squirrel away money for two decades.
Compromising on a starter home can be a great investment that keeps a roof over your head while building equity, Stewart said.
"Likely, in an eight-to-10-year timeframe, you might have made more, and it's highly possible that rates have come down, and so that might be more affordable quicker than those numbers show," he said.
Interest rates are a major factor in a home's affordability. Stewart said that, statistically speaking, most people will have the opportunity to refinance to a lower rate at least once in the lifetime of a mortgage. Plus, for most people, incomes tend to go up over time. So, if you stay in a home long enough, eventually the monthly payments can tend to feel a little bit easier.
Down payments in other Utah cities
As for other Utah cities measured by how long it takes to save for a down payment, Upgraded Points found it takes 24.3 years in Provo, 21.4 in St. George, 17.9 in Orem, 16.8 in Sandy, 16.7 in Ogden, 14.1 years in West Valley City, 13.8 in West Jordan, 13.5 for a home in Layton, 13.4 in South Jordan and 8.4 years in Lehi.
