Suburbian neighborhood

As many of you know, in addition to working directly with buyers and sellers, I stay closely connected to the broader real estate market. Recently, I had the opportunity to review the annual 2026 housing forecast, which included insights from both state-level and federal presenters. The data confirms what many of us are already feeling on the ground — and it also reveals some important shifts that will shape our market moving forward.

One of the biggest takeaways is that Salt Lake City is projected to be one of the top ten housing hotspots in the country heading into 2026. Demand remains strong, inventory remains tight, and long-term fundamentals continue to support price stability and growth.

Mortgage Rates: A New Normal

Mortgage rates declined in 2025 from roughly 7% to around 6%. Forecasts suggest rates will hover near 6% throughout 2026, signaling a period of relative stability. While this is higher than the historic lows of the early 2020s, it’s important to remember that rates in the 6% range are still very much in line with long-term historical averages. Buyers and sellers alike are beginning to recalibrate expectations around this “new normal.”

Homeowners Are Staying Put — Much Longer

Historically, most property owners refinanced or sold their homes every seven years. In 2025, that number jumped to 11 years. This shift is significant. Homeowners with low interest rates, rising equity, and limited replacement options are choosing to stay put which directly contributes to today’s housing shortage.

This trend is also reflected in age-related data. Traditionally, homeowners moved into their second home around age 39. That milestone has now increased to age 63. Fewer move-up buyers means fewer starter homes entering the market, tightening supply at nearly every price point.

Appreciation and Affordability

From 2020 to 2025, Salt Lake home values appreciated 62.5%, underscoring the region’s strong growth. Nationally, buyers need approximately $100,000 in annual income to qualify for a median-priced home. In Salt Lake, that number jumps to $142,000, highlighting the growing affordability gap in our local market.

These figures reinforce how competitive Salt Lake has become — and why strategic planning, local expertise, and timing matter more than ever.

The Supply Shortage Is Real

The combination of homeowners staying longer, delayed move-up purchases, and continued population growth has created a major housing shortage. Simply put, fewer homes are being listed, while demand remains steady. This imbalance continues to support prices and creates challenges for buyers, particularly first-time buyers.

Changing Buyer Behavior

Lifestyle trends are also influencing the market. Seventy-one percent of households now have pets, and that reality impacts buyer decisions from yard size and flooring choices to neighborhood amenities and HOA rules. Homes that accommodate modern lifestyles continue to stand out.

Additionally, real estate agents remain central to the transaction process. 88% of buyers used a real estate agent, and 91% of sellers used an agent. In a complex, competitive market, professional guidance clearly matters.

The Wealth Gap: Renters vs. Homeowners

Perhaps one of the most telling statistics is the difference in net worth growth. From 2019 to 2025, renter net worth increased from approximately $7,300 to $10,000. During that same period, homeowner net worth grew from $295,000 to $430,000. Homeownership continues to be one of the most powerful tools for long-term wealth building.

Final Thoughts

The 2026 forecast confirms that Salt Lake remains a strong, competitive, and resilient market, but one that requires thoughtful navigation. Whether you’re considering buying, selling, or simply planning for the future, understanding these trends is key to making informed decisions.

If you’d like to talk about how this data applies to your specific situation, I’m always happy to help.

*These insights are based on data presented by the University of Utah’s Kem C. Gardner Policy Institute and the National Association of Realtors, combining both state-level and national housing trends.

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