Salt Lake City is a thriving metropolitan area and the most populous city in the entire state. With a population of 1,169,000 residents and rising every year, the demand for housing — especially rental properties — is more competitive than ever.
In 2019, one in six Utahns reportedly moved homes, which equates to almost half a million having relocated. Around 400,000 of those residents moved within the state, either to a new apartment, a new house, an apartment to a house, or from a house to an apartment. That’s a lot of Utahns looking for a place to live and a lot of people trying to find a place to call their “forever home.”
With so many people moving to Utah every year, there are good reasons why you should choose to buy a home with a mortgage instead of continually renting in this highly-rated city.
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The cost of rent
On average, rent prices increase anywhere from 2–4% year after year. This is due to so many people moving into the state and the demand for housing at an all-time high. Since so many people are vying for a place to live, landlords and rental companies can raise rent prices because there are always people willing to pay the price.
Currently, the average rent sits around $1,235 (a 3% increase from 2019) but can range anywhere from $1,000 to $1,500. Renters can expect to pay between $14,820 to $18,000 a year in rent, which is not always a productive strategy.
The cost of a mortgage
The median home price in Salt Lake City is around $281,000. Under a 30-year fixed loan, homeowners are looking at a $1,172 average mortgage payment each month. This comes out to around $14,064 a year and, instead of being wasted on rent, the money goes toward paying off your home.
Homeowners have an advantage over renters in the form of home equity. Equity is the appraised value of your home based on current market values and what you still owe on your mortgage. You could earn around $9,800 every year in equity — maybe more, depending on how well the housing market is doing.
Equity accrues over the life of the loan and can actually be put back into your home through a home equity loan. Using this type of loan allows you to make renovations and improvements to your home which increases the home value and can increase your profit when you sell the home.
Choose a mortgage in SLC
As rent prices continue to rise, it makes strong financial sense to choose a mortgage over renting in Salt Lake City. You’ll typically pay less on a mortgage and earn equity year after year instead of wasting thousands of dollars on rent. When you’re ready to find your “forever home” rather than take out another lease, Loan Remedy is the way to make it happen. We’re here to make the mortgage process simple, uncomplicated, and stress-free.