If you’ve been renting in Salt Lake City and wondering if 2025 is the year to finally take the plunge into homeownership, you’re not alone. With rent prices continuing to rise and the real estate market shifting, an increasing number of renters are asking themselves the same question: Is now the time to buy? The good news is that there are several reasons why 2025 might be the ideal time to make that move.
Why 2025 Might Be the Year to Buy
The Salt Lake real estate market has stabilized compared to the chaos of the last few years. Interest rates have come down slightly from recent highs, inventory has increased, and home values have flattened out compared to the robust pace of the market in 2020 and 2021. That and we are entering the second half of the year, which tends to be a time with increasing inventory and decreasing prices.
That means buyers have more options, fewer bidding wars, and a bit more breathing room to make thoughtful decisions. Sellers are more willing to negotiate on price, repairs, or even help with closing costs, something that was nearly unheard of a few years ago.
And here’s something else to consider: Salt Lake City still faces a long-term housing shortage. The Kem C. Gardner Policy Institute estimates that we’re tens of thousands of housing units short of what is needed to meet demand. So while prices may fluctuate, the long-term trend for home values is likely to continue upward.
The Case for Leaving Renting Behind
If you’re currently renting, you’ve probably noticed those rent increases creeping in year after year. When you own, your mortgage payment is locked in (with a fixed-rate loan), offering predictability that renting just can’t match.
But it’s not just about the monthly payment—it’s about building equity. Every payment you make on your mortgage is an investment in yourself, not your landlord. Over time, this can lead to wealth-building opportunities and the ability to leverage that equity for future moves, renovations, or even investment properties.
What Changes When You Buy?
Owning a home comes with plenty of benefits, but also a few responsibilities renters don’t usually think about. You’ll be responsible for maintenance, repairs, and property taxes. Budgeting for things like replacing a furnace, landscaping, or patching the roof becomes part of the equation. A good rule of thumb is to set aside 1–2% of your home’s value each year for ongoing maintenance costs.
That said, you also gain freedom. Paint the walls whatever color you like, hang shelves wherever you want, put in a garden, or adopt that dog you’ve been thinking about. No permission needed. It’s your space.
What’s Happening with Interest Rates?
Yes, rates are higher than they were in 2021’s record lows. However, historically, they’ve remained reasonable, and in fact, they’ve started to dip slightly compared to the peaks of 2023. There is a old saying in the real estate business, “Marry the house, date the rate.” In other words, buy the home you love at today’s rate (while prices and competition are reasonable), and refinance later if rates come down, which many economists predict could happen in the next couple of years.
There are also creative lending options available, such as mortgage rate buydowns, adjustable-rate mortgages (ARMs), and down payment assistance programs specifically designed for first-time home buyers in Utah.
What You Need to Get Started
If buying feels like a big leap, it is, but it’s also entirely doable with the right plan. Here’s what to focus on:
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Get Pre-Approved: This should always be step one. It helps you understand your price range and makes you a stronger buyer when you’re ready to make an offer.
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Know the Full Costs: Beyond your mortgage, factor in property taxes, insurance, utilities, and maintenance.
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Check Out Down Payment Assistance: Utah Housing and other programs can help first-time buyers with down payments and closing costs.
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Work with an Experienced Realtor: Knowing the neighborhoods, whether you’re drawn to the walkability of Sugar House, the historic charm of The Avenues, or the modern communities in Daybreak, matters. A local expert (like us!) can help you navigate the options.
So… Is 2025 the Right Year?
If you’re planning to stay in Salt Lake for at least the next few years, the answer is likely yes. You’ll start building equity, have more stability, and with inventory up, you’ll have a better chance of finding the right place without the panic-driven bidding wars we’ve seen in recent years. It’s not without challenges; higher rates mean monthly payments are still higher than they were a few years ago, but those same rates have also cooled competition, giving buyers the upper hand in many cases.
Salt Lake City Real Estate: Your Partner in 2025
If you’re considering buying or selling a home in or around Salt Lake City, we’re here to help! Whether selling a home to buy another, buying your first home, or relocating, we provide expert advice and service to help you navigate the local real estate market. Kevin Coyle of SLC Homes has the resources and expertise to assist you every step of the way. Contact us today to start your journey toward accomplishing your real estate goals!
