First-time homebuyers in Utah have sticker shock. High interest rates and a belief that inventory is low make them jittery too.
“Everyone is aware that housing prices continue to go up in Utah and across the country, and so it makes it much harder, a much more difficult entry point into home ownership,” said realtor Asha Klarich.
New data from Salt Lake Realtors backs that up — at least for Salt Lake County. In the second quarter of 2026, the median price of a single-family home rose to $645,000. That’s a 4.88% increase year over year and the highest quarterly median ever recorded.
“I think we need to reset expectations about what that first home is going to look like,” Klarich said. “It's not going to be your dream home, but it's a great starting point and truly the best way to build equity and long-term wealth.”
There’s also more inventory of homes for sale right now. Klarich said there are 14,000 active listings across the state, which she called a “radical change” over recent years. With about a 40% increase, she said buyers have options.
Here are some things to keep in mind if you’re ready to go house hunting.
Get your financial house in order
Klarich highly recommends talking to a lender before anything else. You need to have a good understanding of your credit, how much you have to put down and how much you can afford each month. That’ll save time and tears when the house with the picket fence and double car garage is out of range.
“It's a much more targeted and thoughtful approach to starting the home buying process that can really make it much less stressful and much more effective,” she said. “You don't want to spend all of your time looking at homes in the $600,000 range when you really only feel comfortable with a payment in the $550 [thousand] range. It’s truly the best first step.”
Keep high interest rates in perspective
Interest rates are a big concern for potential buyers right now, but Klarich offered some historic perspective.
“It makes sense that people would be concerned about interest rates, especially when, in very recent memory, folks were getting interest rates in the twos and threes,” she said. “So having a rate between 6.5 and 7% feels like massive sticker shock. But if we look at interest rates over the past 30, 40 years, interest rates between seven and 12% were not uncommon.”
Payment assistance programs
Klarich recommends looking at them, but urges caution too.
“Utah Housing [Down Payment Assistance Program] is by far the most common. You can get down payment assistance that is up to 6% of the loan amount to help you with the down payment and closing costs,” she said.
The Salt Lake Board of Realtors and many other private organizations offer grants as well.
“They're not always a gift,” Klarich noted. “The Utah Housing Down Payment Assistance Program becomes a second mortgage. It can definitely help you get into home ownership. You just want to make sure you're having a careful and thoughtful calculus about whether that is worth it.”
Is an ADU for you?
Many assistance programs require the property be owner-occupied, so an Accessory Dwelling Unit could be a good mortgage-helper too.
Many municipalities have eased restrictions on ADU purchase and construction and on required permits.
“Many builders are also incorporating directly into their new builds that have ADUs, so they already have a separate entrance,” Klarich said. “Some have a separate utility meter, because I think they see they want to build a product that people will buy. And if having an ADU and the ability to offset that mortgage payment with a renter helps them sell, then it benefits everyone.”
And ADUs come in various shapes and sizes. In older homes, think basement apartments or even half of an owner-occupied duplex.
New home construction
New builds are a big factor for Utah’s higher housing stock. An abundance of land prompted developers in places like Eagle Mountain and Saratoga Springs to build large communities, but not all units are selling.
“Builders in some areas have overbuilt. So there's a lot of new construction inventory in Salt Lake and Utah and Davis County. They're not making money if they're having to carry all of those costs every month. They’re slashing prices. Many builders are offering promotional rates as low as 2.99% and will offer closing costs as well,” Klarich said.
Some are throwing in full appliance packages and things like mini blinds too. Because of that, existing homeowners in those areas have had to drop asking prices significantly to compete with builder incentives.
Fixer uppers
If a new home is not to your liking, don’t rule out buying a fixer-upper if it’s the right fit for you.
“If you're someone that's patient and you really want a home in a very particular area, look for a home that might need a little bit of work. And if you're a patient, especially if you can do the work yourself over time, I think it's a great avenue. Don't discount the home completely or write it off because it is not picture- or magazine-worthy right out of the gate,” Klarich said.
Editor's Note: This summer, KUER is asking Utahns how they got the house. One of the things that Asha Klarich recommended was resetting your expectations. We spoke to one couple who did just that and reset their sights on a home in Davis County.
