Learn more about the housing market in Utah

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. In the case of Utah, the picture in 2025 is one of steady adjustment: the average home value sits around $530,000, marking a modest year-over-year increase after the rapid price spikes seen earlier in the decade. While the market remains competitive, rising inventory, easing mortgage rates, and shifting buyer demand have slowed the pace of appreciation. Affordability, however, continues to be a significant concern as home prices stay elevated relative to income growth across the state.

Utah Housing Market Overview  

Also known as the Beehive state, Utah is known for its beautiful parks like Zion and Bryce and many breathtaking landscapes. Some of its largest cities include Salt Lake City and Provo. 

According to data from IBISWorld, Utah had a GDP of $224.6 billion in 2024 and a population of over 3.4 million, placing it 5th out of all 50 states for five-year GDP growth. In the same period, Utah’s population growth has been among the fastest nationwide, with a rate of approximately 1.6% in 2024, placing it 2nd in population gains.

At the beginning of 2024, real estate experts predicted that Utah housing prices that had risen all throughout 2023 would continue to rise and would also see a steady increase in the number of homebuyers. In fact, by mid-2025, Utah home prices were up about 4.9% year-over-year, with a median sales price near $579,800 in October. Meanwhile, housing inventory is rising with active listings increasing 18.9% year-over-year in May 2025. This indicates more supply is entering the market, and suggests that the imbalance created by strong demand and constrained supply still exists, though the pace of price growth has moderated.

Experts predicted that interest rates that were approaching 8% at the end of 2023 would stabilize by the second half of the year but remain over 6%. According to Freddie Mac’s Primary Mortgage Market Survey, this prediction has held. By late 2025, the national average 30-year fixed rate had stabilized around 6.2%–6.4%, with Utah’s rates tracking closely to this range. As borrowing costs level off, Utah’s housing market is showing signs of modest stabilization. The state’s housing supply has continued to rise through 2025, but the market remains tight overall, with homes still selling relatively quickly and at competitive prices—especially in growing metro areas along the Wasatch Front.

Utah Housing Market Trends  

To understand the Utah real estate market, it’s important to keep up with trends such as the average price and rate of rising property prices in Utah. The increase in housing supply is significantly impacting the market dynamics, indicating shifts in supply and demand for housing. Let’s look at some key real estate trends in Utah: 

Note: These statistics are based on Redfin’s monthly housing data from October 2025. 

Median Home Price  

The median price of a home in Utah as of April 2024 was $579,800, according to Redfin’s monthly housing market data. This is an increase of 4.9% year-over-year.   

The list price plays a significant role in competitive market dynamics and seller dominance, with many homes being sold above or below the list price depending on the market conditions.  

Number of Homes Sold in October 2025 

3,271 homes were sold in Utah in October 2025, which is a 0.91% decrease from the previous year. Sales have softened slightly, and this level still falls far below the peak activity seen during the summers of 2021 and 2022 when demand and transaction volume were significantly higher.

When looking at this statistic, it’s important to keep in mind that nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%.   

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. This indicates limited inventory and high demand, benefiting sellers in negotiations. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage. 

The median DOM in Utah in October 2025 was 59 days, which is up from 12 year-over-year. This means that on average, listings close to two months on the market before they are purchased. 

New Supply Statistics 

In May of 2024, Utah had 19,096 homes for sale with 4,450 new listings. The total number of homes went up 2.7% year-over-year and new listings increased 14.5% year-over-year. With 3 months of supply, Utah is just below the 4-5 months of supply experts typically point to as stable. This data seems to show that Utah’s market is still stabilizing.

Property Tax Rate 

According to Rocket Mortgage, the average property tax rate in Utah is 0.53%. This is lower most other states in the country. However, tax rates are likely to vary depending on the value of a home and its location in the state.   

Foreclosure Rate in Q1 of 2025

In the first quarter of 2025, 1 in every 1,169 housing units in Utah experienced a foreclosure filing, according to ATTOM, which places the state 8th worst nationally for that period.

Hottest Local Markets in Utah  

Here are a couple of the top local housing markets in Utah during 2025, where the median sale price provides a benchmark for understanding the overall price trends within the housing market:  

1. Salt Lake City

Salt Lake City is the most populous city in Utah by a significant margin. The capital is home to a robust economy and a diverse tourism scene reliant on skiing, outdoor recreation, and religious tourism. As of July 2025, the median listing home price in Salt Lake City was $584,900, with a median sold price of $502,600. Despite healthy demand, the market has softened slightly. Homes are staying on the market longer and many are selling for roughly the asking price. Salt Lake City currently leans toward a buyer’s market, with inventory growing faster than buyer activity. Some of the most popular neighborhoods in Salt Lake City include Liberty Wells, The Avenues, and East Central.  

2. Provo

Provo is another city in Utah known for its picturesque landscapes, history, and nature. As of late 2025, the median home value in Provo is approximately $501,967, reflecting a year-over-year increase of about 1.9%. Meanwhile, the median days on market has climbed to about 53 days, suggesting a modest shift toward more negotiation room for buyers. but even at this level the pace still points to a competitive market.

Economic Factors Impacting the Utah Housing Market  

A holistic view of Utah’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s take a look at a few critical ones below:  

Mortgage Rates 

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2024. As previously mentioned, Bankrate lists Utah’s current 30-year fixed-rate mortgage average is at 6.28% (October 2025), which hovers just about at the national average.  

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. With Utah’s inflation rate hovering around 3% in 2025, rising costs have made it harder for many households to keep housing expenses below the recommended 30% of monthly income.

Population Changes and Demographics 

A changing population can also have implications for the housing market. According to Utah's Department of Workforce Services, the unemployment rate sits at 3.2% in the state, which is lower compared to the rest of the country. This low unemployment rate suggests a thriving and healthy economy that is bound to help the housing market in the state.   

Utah Housing Market Forecast 2025  

As previously mentioned, multiple sources considered the appreciating housing market Utah faced in 2023 and made specific Utah housing market predictions for 2024 that prices would continue to rise throughout the year—and that trend has held through 2025 at a slower pace. With easing mortgage rates, gradually increasing inventory, and steady sales activity, price growth is beginning to moderate, suggesting a more balanced market may emerge heading into 2026.

These factors can have significant implications for buyers, sellers, and the overall housing market. Sustained changes in home prices may indicate broader market challenges and affect affordability for buyers or opportunities for sellers.  

Likelihood of Utah Housing Market Crash  

While Utah is one of the leading states in homeownership rates, younger people are still facing major housing issues. In 2025, a typical family in the Salt Lake City metro would need to allocate nearly 42% of their monthly income toward buying a home—a clear sign of strained affordability. While experts don’t expect a housing crash, Utah’s market is still only gradually shifting toward balance, meaning affordability pressures are likely to persist even as conditions slowly ease heading into 2026.

Forecast for the U.S. Housing Market  

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

While these factors impact Utah’s rental market, they don’t dominate it. Below are just a few of the current trends for Utah’s rental market based on data pulled from Zillow:  

Utah Rental Market Key Trends 

• Median rent: $1,799  

• Month-over-month rent change: -$1

• Year-over-year rent change: -$1

• Available rentals: 6,173  

Conclusion  

The diversity of Utah’s industries and environments means that its average housing market statistics are pulling from a mix of urban and rural populations, where the housing market is experiencing very different conditions. But the state’s market continues to stabilize while pointing to a slow in its rapid growth. Experts and analysts will continue to monitor this market, as well as nationwide factors like interest rates and new construction. 

FAQs

What is the current state of Utah’s housing market in 2025?

Utah’s housing market in 2025 is experiencing steady adjustment, with moderate price growth, rising inventory, and a gradual shift toward balance after years of rapid appreciation.

Are home prices still rising in Utah?

Yes, but at a slower pace. By October 2025, Utah’s median home price rose about 4.9% year-over-year, reflecting cooling but continued demand.

Is Utah currently a buyer’s or seller’s market?

The market remains somewhat competitive, but higher inventory and longer days on market indicate conditions trending toward a more balanced environment.

How are mortgage rates affecting the market?

Mortgage rates have stabilized around the low-6% range heading into 2026, offering slight relief to buyers while keeping affordability an ongoing challenge.

What economic conditions are influencing Utah’s housing trends?

Low unemployment, steady population growth, and moderate inflation continue to support sustained housing demand throughout the state.

Are foreclosures increasing in Utah?

Foreclosures have ticked upward in 2025, placing Utah among the higher-ranked states for foreclosure activity, though levels are still far from recession-era highs.

Which local markets in Utah are the strongest?

Salt Lake City, Provo, and other Wasatch Front metros remain in high demand, with desirable neighborhoods seeing steady activity despite longer selling times.

What is the outlook for Utah’s housing market in 2026?

Forecasts suggest continued moderation—gradual price growth, increasing supply, and easing rates—with no signs of a crash, though affordability will remain a challenge for many households.