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Utah's Housing Prices Surge 10.6% YoY While National Median Grows 6.2%

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  Published in House and Home on Tuesday, December 23rd 2025 at 17:28 GMT by KUTV

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Utah’s Real‑Estate Boom Continues While Other U.S. Cities See Price Declines

In a recent feature on KUTV’s news website, the local network examined the stark contrast between Utah’s hot housing market and the cooling conditions seen in many other American cities. The story, “Home Prices Continue to Rise in Utah, Decline in Other U.S. Cities,” pulls together a mix of national data, local expert commentary, and demographic analysis to explain why the Bear‑Canyon state remains an outlier in a housing environment that is, for the most part, moving in the opposite direction.

Utah’s Numbers Keep Climbing

According to the article, Utah’s median home sale price jumped 10.6% in the first quarter of 2025 compared to the same period last year—an increase that surpassed the national median of 6.2% for the same timeframe. Using the National Association of Realtors (NAR) monthly report as a benchmark, the story highlights that the state’s median price reached $515,000, a level that remains 28% above the 2005 peak of $400,000. These figures are based on the latest release from the NAR’s “U.S. Housing Market Trends” dashboard, which KUTV links to directly in the article.

The piece also cites Zillow’s Home Price Index (ZPI), noting that the index in Salt Lake City has risen 15.8% YoY, the fastest growth rate among all major metro areas in the country. “Zillow’s data show that we’re not just seeing a temporary surge,” says real‑estate broker Amanda Patel of Keller Williams in the article. “The underlying demand and limited supply have created a durable upward trajectory.”

Utah’s price gains are tied to several local factors:

1. Population Boom – The U.S. Census Bureau reports that Utah’s population grew 1.7% between 2022 and 2024, the largest growth rate of any state. The influx of tech workers and retirees is driving demand, especially in the Ogden, Provo, and Park City markets.
2. Low Inventory – According to the Utah Association of Realtors, the multiple‑offer ratio for homes in Salt Lake City reached 3.5 in March 2025, indicating that buyers are competing fiercely for a limited stock of houses.
3. Favorable Mortgage Rates – While the Federal Reserve’s rate hikes have pushed average mortgage rates to 6.9% in the second quarter, the article notes that many Utah homeowners still have lower rates from the pre‑2020 wave of historically cheap borrowing.

The KUTV article rounds out its Utah section with a chart that shows a clear upward trend for the state’s price-to-income ratio over the last decade, a metric that economists use to gauge affordability. The ratio climbed from 4.2 in 2010 to 6.1 in 2025, underscoring that homes are becoming progressively less affordable for the average resident.

The Counter‑Trend in Other Major Markets

In contrast to Utah’s sky‑high prices, the article flips the narrative to highlight cooling markets across the country. Through a series of data points pulled from the same NAR release, KUTV explains that cities like Detroit, Cleveland, and St. Louis have seen median price declines of 5–7% YoY. The piece links to the NAR “Urban Market Performance” page for readers who want to see the full list of cities experiencing price drops.

The article attributes these declines to a combination of factors:

• Economic Slowdown – In the Rust Belt, declining industrial output and job losses have lowered demand for housing, leading to a surplus of listings.
• Over‑Supply – Some suburban areas have seen an over‑construction of new homes that have not found buyers.
• Higher Mortgage Rates – As mortgage rates rose, buyers in these markets found financing more expensive, curbing demand.

An interesting anecdote from the article is a quote from a local realtor in Detroit, who notes that “We’re seeing a lot of buyers who are looking for a price drop before they even come into the market.” The story points readers toward a recent Detroit‑based news piece on how the city’s housing market is adjusting to the new economic reality.

Nationwide Comparison: Housing Affordability and Future Outlook

KUTV’s piece goes beyond Utah and other big cities by comparing national affordability trends. Using the U.S. Census Bureau’s “Housing Affordability Index” (HAI), the article shows that the national HAI has slipped from 100 (average affordability) to 85 in 2025, meaning that a median‑income household would need a 15% increase in income to afford a median‑priced home. The Utah HAI, by contrast, sits at 78, indicating an even steeper decline in affordability for state residents.

Looking ahead, the article references an upcoming NAR webinar on “Future of U.S. Housing” and includes a link to the NAR’s “Economic Outlook” report. It notes that economists predict a modest slowdown in price growth in Utah next year as the supply of new construction gradually catches up with demand. Yet, for the foreseeable future, most Utah cities are expected to remain on a rising trajectory.

Key Takeaways

• Utah’s median home price is up 10.6% YoY, surpassing the national median increase of 6.2%.
• Low inventory and a growing population are driving demand in the state, keeping prices high.
• Other U.S. markets—especially in the Midwest—are seeing price declines of 5–7% YoY, as economic slowdown and higher mortgage rates curtail demand.
• Affordability is worsening nationwide, with the U.S. Housing Affordability Index falling below 100 and Utah’s index below 80.
• Future forecasts suggest a gradual slowdown in Utah’s price growth, but the state remains an outlier compared to the broader market.

For readers who want deeper data, the article provides direct links to the NAR’s monthly reports, Zillow’s Home Price Index, the Census Bureau’s affordability statistics, and a recent Detroit market analysis. By weaving together these sources, KUTV delivers a comprehensive snapshot of how Utah’s housing market defies national trends, offering valuable context for homeowners, buyers, and policymakers alike.