ST. GEORGE — A recent study found that Utah’s rent prices have increased more in the last two years than in the previous decade. How is Southern Utah faring?

A study published by the University of Utah found that since 2020, more than two-thirds of households couldn’t afford a median-priced home in Utah.

Dejan Eskic, a research fellow at the University of Utah’s Kem C. Gardner Policy Institute, said that increased housing prices have pushed many Utahns into the rental market, which has increased demand and driven costs higher, according to this St. George News Article originally written by Mark Richardson.

Before the pandemic, approximately 49% of Utah households couldn’t qualify for a median-priced home, but by 2022’s second quarter, that percentage had increased to 78%, according to the article.

Jim Rushton, who works with the Stratum Real Estate Group and is the president of the Iron County Board of Realtors, said that he’s noticed there is a low supply of affordable housing in Southern Utah, partly due to the area’s population growth. This has forced those who would have bought to rent instead, driving up rental prices.

Millennial home buyers “are having a tough time” in particular due to high-interest rates and an anti-growth sentiment, among other factors, Rushton said, adding that people aged 23-38 have a 43% homeownership rate – 22 points below the overall national rate.

The average monthly home payment increased from $1,400 in December 2021 to $2,650 in September 2022, Rushton said, adding that the increase was caused by higher interest rates and fewer houses being on the market. New single-family builds are down 20% since last year.

Rent for two-bedroom apartments in St. George has increased 10% since 2021, to an average of $1,395, according to this Zumper report. During the same time period, the cost of a one-bedroom increased by 17%, while rent for a studio apartment decreased by 13%.

A similar report for Washington City shows an increase of about 3% since last year and an average rental price of $1,650.

In Cedar City, a two-bedroom apartment costs an average of $1,150, an increase of 26% since 2021, according to this report. However, rent for a one-bedroom apartment decreased by 39% to $550.

Zumper reports are updated weekly and the information presented in them could change based on new data.

Rushton said he’d seen townhomes in Iron County with three bedrooms and 2.5 bathrooms being rented for as high as $2,000 and that prices have increased between 60% and 70% in the last two years.

Because rental prices are often as high or higher than a mortgage payment, Rushton suggests that those who can consider purchasing a house.

“One of the biggest contributors to wealth is homeownership,” he said.

There are programs that can help individuals obtain financing to purchase a home, such as the U.S. Department of Agriculture’s Rural Development Home Loans, which Rushton said can likely be used throughout Iron County.

The program is geared to low to moderate-income families and has more lenient requirements, according to its website. Financing can be obtained with no down payment.

Additionally, many municipalities are working to increase the amount of attainable housing available to the public. For instance, Cedar City Council passed an ordinance to allow for external accessory dwelling units, which the owners could then rent out, which Councilmember Tyler Melling said could decrease the overall price of rent.

In Washington County, the Housing Action Coalition is researching various solutions and has been working to bring a community land trust to Washington County, which would enable buyers to purchase a home while leasing the land it’s on from the trust for a low fee.

Various organizations can help families struggling to pay their rent, including the Department of Workforce Services’ Homeless Prevention Program, which can offer qualifying families assistance in making a rent, mortgage, security deposit, or utility payment once in a year’s time.

There are various organizations in Southern Utah offering resources to those in need of housing or rental assistance, including:

• Cedar City Housing Authority.
• Iron County Care and Share.
• St. George Housing Authority.
• Switch Point Community Resource Center.

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