The American Dream and home ownership are two phrases that go hand in hand symbolizing freedom, independence, and opportunity.
In this 2024 guide, we will cover the benefits of owning a home in Utah.
Here are 5 benefits of owning a home in Utah:
1. Appreciation
Do you remember when 3 bed, 2 bath townhomes were less than 100k here in Utah?
Well, that is likely what you would have paid for a townhome had you purchased one just 6 or 7 years ago in most Utah cities. That same townhome now is selling at $450k or more.
Do you remember when 4-bedroom single family homes were between $300k and $350k?
What about the then-newly built homes in Herriman, Draper, Saratoga Springs, Lehi, South Jordan and many other cities that were sold in the low $200’s just twenty years ago?
Now those same homes are worth anywhere from 500k-850k or even more in some cases.
Recently, we saw the mountain west housing market explode in late 2020 and 2021. Utah was the hottest housing market in the nation in the spring of 2021 with housing price increases as much as 30% in some areas.
If you think Utah's home appreciation is impressive, take Southern California as an example.
Southern California experienced a housing boom during the mid-nineties. The homes sold at around 300k. Now those homes are worth over 2 million dollars in many cities.
Adjusted for inflation, 300k then is worth around 600k today. So, in 25-30 years, the people who bought and kept their house made over a million dollars for doing so.
Home values appreciate over time, so it is a good idea to own a home to take advantage of the increase in value.
2. Equity
Home equity is how much of your home that you own. It is the difference between what the bank owns and what you own.
For example, if your mortgage is 500k, and you owe 400k to the bank, you have 100k of equity in your home, assuming your home is worth 500k when you go to sell it.
You accumulate equity with each monthly mortgage payment that you make.
This is not the case when you rent, as the money you spend on housing goes down the drain and you never see that money again.
Home appreciation and equity have a nice connection because usually, each year the value of your home increases, and each month you own more of your home as you pay down the mortgage.
3. You can make changes to your house and yard
What's your favorite color?
Do you prefer warm tones or cool tones? If you are like most people, you probably want control over how the inside of your home looks. You probably want to hang up pictures of your family, artwork, maybe change the color of the walls or change the carpet or flooring.
Everyone has varying color choices and house layout preferences. When it comes to renting, some landlords don’t even let tenants hang up a family picture. When you rent, you don’t have the freedom to paint the walls, remodel, change the carpet or floors, or add decorations.
In some cases, renters are not allowed to make any changes to their environment at all.
Hello home ownership!
When you own a home, you can make whatever changes you want to the interior of your home. You can also likely make changes to your yard, porch, patio, or exterior of your home. (Many HOA communities don’t allow exterior home or yard changes to be made).
4. Stability
Moving can be a stressful time. Most people don’t enjoy moving or look forward to it. Moves are stressful as you clean, gather your family and belongings, pack up everything you own, get a moving van, and then clean and unpack everything.
Unless you need or want to, when you own your home, you don't have to worry about moving and can focus on your individual and family goals in the neighborhood, city, and area where you live. You build relationships with your neighbors, make life-long friends, and establish comfortable living patterns.
In contrast, your landlord can choose to sell the property whenever they want leaving you with an unexpected move.
5. Future Economic Growth
Utah has experienced rapid economic and population growth the last two decades and shows no signs of slowing down.
According to the University of Utah’s Kem C. Gardner Policy Institute, by 2033, 4 million residents will call Utah home and an additional 1.3 million jobs will be created over the course of 40 years . (Kem C. Gardner 1)
It looks like home values in Utah will continue to rise because of the economic stability and state growth. (Of course, however, many factors affect the national and state housing market). This is great news if you own a home in Utah.
So, as you imagine having family and friends over for a delicious backyard BBQ, an immaculate dining room for parties and gatherings, a larger garage capable of storing your bikes, or a fall evening in your hot tub, know that we give Cash Back at Closing when you buy or sell a home.
Contact us today and we’ll help you achieve your home goals.
References
Kem C. Gardner Policy Institute. Utah population to increase by 2.2 million people through 2060 - Kem C. Gardner Policy Institute. Published January 24, 2022. https://gardner.utah.edu/utah-population-to-increase-by-2-2-million-people-through-2060/