Utah Housing Market Forecast: What to Expect in 2025

Utah’s real estate market has been one of the hottest in the country over the last decade, fueled by tech job growth, population influx, and a strong local economy. But with shifting interest rates, affordability challenges, and evolving migration patterns, what will the Utah housing market look like in 2025?

Whether you're a first-time buyer, investor, or thinking about selling, here’s what to expect in Utah real estate over the next year.

🔍 Quick Snapshot: Utah Real Estate Trends Entering 2025

• Median Home Price (Statewide): ~$515,000

• Average Mortgage Rate (30-year fixed): Expected to stabilize around 6.5%

• Top Growing Markets: Lehi, St. George, Eagle Mountain, Logan

• Buyer Activity: Increasing slightly due to rate cuts and inventory growth

• Inventory Levels: Slowly rising but still below pre-2020 averages

📈 1. Home Prices Will Stabilize, Not Crash

After skyrocketing during the pandemic and peaking in 2022, Utah home prices cooled slightly in 2023–2024. As we move into 2025, expect home prices to stabilize, especially in high-demand areas like Salt Lake County, Utah County, and Washington County.

Forecast:

• Modest price growth of 3–5% statewide

• Luxury and resort markets (Park City, Heber) may see slower appreciation due to higher borrowing costs

• More affordable areas (Ogden, Logan) could grow faster due to increased buyer demand

💵 2. Interest Rates Will Influence Buyer Behavior

With the Federal Reserve expected to cut rates modestly, mortgage rates could drop to around 6.0–6.5% by late 2025. That’s still high compared to 2021 lows, but enough to revive buyer interest, especially among millennials and first-time buyers.

What this means:

• More competition for homes under $500K

• Slight uptick in refinancing activity

• Builders may ramp up projects to meet demand in the $400K–$600K price range

🏘️ 3. Inventory Will Improve—but Not Enough

The inventory crunch that has plagued Utah for years will ease slightly in 2025 due to:

• Slower buyer activity in 2023–2024

• More sellers entering the market as prices level off

• New construction catching up (especially in Lehi, Saratoga Springs, and Tooele)

However, supply will still lag behind demand, particularly in Salt Lake County and Utah County.

🧭 4. Suburban & Secondary Cities Will Lead Growth

As affordability remains a concern, smaller Utah cities will grow faster than traditional urban cores. Areas like:

• Eagle Mountain – rapid population growth, affordable new builds

• St. George – retirees, remote workers, and investors

• Logan – university town with strong rental demand

• Tooele & Payson – entry-level housing demand

These cities offer lower prices, more space, and appealing quality of life — especially for young families and remote workers.

💡 5. More Investors Are Targeting Utah Rentals

Utah’s strong job growth and young population make it a hotspot for rental property investors in 2025. With consistent rent increases and lower vacancy rates, markets like Ogden, Provo, and West Jordan are attracting more out-of-state investors.

Key rental trends to watch:

• High demand for 3–4 bedroom single-family rentals

• Multi-family development increasing near universities and tech hubs

• Continued interest from Airbnb/short-term rental buyers in resort towns

🧠 Final Thoughts: Is 2025 a Good Time to Buy or Sell in Utah?

✅ Buyers: 2025 could be a strategic time to buy — especially if mortgage rates fall and more inventory hits the market. Focus on emerging suburbs for the best deals.
✅ Sellers: Prices are still historically high, and with increased demand from rate-sensitive buyers, you may benefit from listing earlier in the year.
✅ Investors: Look beyond Salt Lake City for better ROI — secondary cities and growing rental markets offer great opportunities.

🏡 Ready to Make Your Move?

Whether you're buying, selling, or investing in Utah real estate, our team is here to help. We offer local expertise, market insights, and personalized strategies to guide you every step of the way.

📞 Contact me today for a free consultation or click below to view current listings in your area.

👉 Call or Text 801-597-3125 or email me @ wolfeluxre@gmail.com