Many would-be homeowners frequently place Salt Lake City, Utah, high on their list of ideal locations to call home. Its incredible atmosphere, low costs, friendly community, and thriving economy offer a promising future.
However, before making the big move, it’s critical to thoroughly understand the cost of living in Utah and ensure that you are financially prepared to commit to the transition.
Salt Lake City, Utah By The Numbers
Their lower state tax rate, energy costs, and affordable housing marketing all make Salt Lake City, Utah, a financially relaxing place to live. Its per capita personal consumption expenditure (PCE) was around $47,600 in 2021: a little lower than what you’d usually find across the country.
On average, owner-occupied houses in Salt Lake City went for $380,200 from 2017 to 2021, which is higher than the national average. That said, property investments are easier to pay for than in other states. The higher price point also reflects how there’s a potential for your quality of life and property value to improve here.
On the rental side, Salt Lake City, Utah, offers comparatively lower rent costs than many other states due to several factors.
The city’s robust economic standing, low unemployment rates, and steadily growing population contribute to stabilizing rent prices and preventing them from rising too rapidly. The median gross rent in Utah from 2017 to 2021 was $1,141, providing a more affordable option for those seeking rental accommodations.
However, it’s vital to note that Utah’s PCE experienced a significant 16.3% increase from 2020 to 2021, indicating positive economic growth within the state.
On the other hand, Salt Lake City’s estimated transportation cost is $5,316 per adult, including expenses like buying a used car, auto insurance, gas, auto maintenance, and public transportation. The city also offers walkability and bikeability options, reducing transportation expenses.
You may also enjoy a flat income tax rate of 4.85%, which can be a big positive if you’ve lived in states with severe tax rates. Its sales and property taxes are also much lower compared to other states. It’s why citizens can enjoy a much lighter tax burden.
How to Prepare Your Finances for Salt Lake City, Utah
To mitigate living costs when relocating to Salt Lake City or any new city, there are various strategies you can implement. You can start by creating a budget, evaluating grocery spending, considering a neighborhood with a lower cost of living, canceling unnecessary subscriptions, and switching to an electric car to decrease gas usage.
You can also buy generic medicine, use solar power to reduce electricity bills, find cheaper insurance policies, pay off debts in full to minimize interest expenses, and consolidate debts to get more favorable terms.
Putting all these together, moving has many advantages due to the city’s low cost of living. However, it’s imperative to consider the specific expenses related to housing, groceries, transportation, utilities, healthcare, and taxes when planning your relocation.
By understanding these costs and implementing strategies to reduce expenses, you can ensure that you are financially ready to move to Salt Lake City.