Rent vs buy in Utah

How we see Utah

Over the last 10 years, Utah home prices rose 8.6% a year. A typical home here costs $533k, and median rent is $1,496 a month, compared with $1,413 a month nationwide. That gap puts renting ahead over 7 years in 18 of the 19 cities with 50,000+ people. Renting a $568,970 home in Salt Lake City costs you $1,571. Renting wins by $83k, and you don't break even until year 20. Renting wins by $116k in Millcreek, where you pay $1,514 to rent a $632,014 home and you break even at year 29.

Buying pays off for you only where local rent runs high beside home prices. Buying wins in the 1 city, Eagle Mountain. Rent there hits $2,301, while a typical home costs $505,223. Buying wins by $15k, and you break even at year 6. Even in the cheaper city of Ogden, renting a $390,773 home costs $1,316. Renting wins there by $41k, and buying won't break even for you until year 15.

Low yearly costs help you if you buy and stay put. Property tax costs you 0.52%, which sits well below the 0.94% rate in the US. Homeowners insurance runs $923 a year, against $1,308 a year across the country. Prices rising 5.1% a year over the long term also help you build value. Renting puts you among 334,678 renter households, 30% of the state, while the US share is 35%.

Our take: we think renting in Utah is right for you, except when you buy in Eagle Mountain or remain past year 15.