Monthly rent in Salt Lake City is 89% cheaper than monthly mortgage, according to a study

Salt Lake City, Utah – According to a recent study, paying rent monthly in the Salt Lake metro area is significantly less expensive than paying a mortgage. This indicates that for many prospective homeowners, the transition from renter to homeowner will take longer.

The average monthly rent in the city is about $1,700, but the average monthly mortgage is about $3,100, according to a Bankrate.com survey. Every month, this striking disparity translates to almost an 89 percent difference.

The affordability shift was ascribed by Bankrate.com analyst Alex Gailey to rising house loan and property price charges. She claimed that many residents found renting to be a more cost-effective choice as the costs of purchasing rose.

Gailey did note, though, that Utah’s population is growing at an accelerated rate, which is the fundamental problem fueling this trend.

“There are a lot of people who have flooded into the Salt Lake City metro area, and that in turn has created a lot of demand. Unfortunately, there are not enough homes to meet that demand,” she said.

To address the housing scarcity, Turner Bitton, a citizen of Salt Lake City and the organizer of the advocacy group Salt Lake City Neighbors for More Neighbors, stressed the necessity of changing the law.

Bitton’s group advocates for zoning code changes that will make it easier to provide a variety of housing options that will suit Utahns of all income levels.

“It’s very important we expand the types of houses being constructed. That includes things like ADUs (Accessory Dwelling Units) or smaller homes, townhomes, condos,” he said.

Bitton issued a warning, saying that renting will continue to be a more affordable alternative than buying until more diverse housing options are made accessible.

Bitton contended that as long as Utah’s housing crisis persists, it will be a challenging journey from renter to homeowner, even if property prices and mortgage interest rates decline.

According to him, Utah lacks 60,000 or so townhomes, condominiums, and apartments.