Independent · Local · Community-first
fed raises rates as 90% of utah renters arfe priced out of homeownership
The Federal Reserve raised its benchmark rate by a quarter point this week as a Utah economist says the share of renters priced out of buying has climbed from 60% a decade ago to 90% today.
UTAH HOUSING AFFORDABILITY CONTINUES TO TIGHTEN
The Federal Reserve raised its benchmark interest-rate range by 0.25 percentage points this week, bringing it to 3.75%–4.00%.
In Utah, the increase comes as homeownership is already out of reach for many renters. Dejan Eskic with the Kem C. Gardner Policy Institute says roughly 90% of Utah renters are currently priced out of buying a home, compared with about 60% a decade ago.
Utah’s average home price is around $520,000, while the monthly cost to buy is estimated to be roughly $1,300 more than renting. Higher borrowing costs could further increase the income needed to qualify for a mortgage.
