Most aspiring homeowners dream of moving to a city with a great atmosphere, a friendly community, and a booming economy. For many people, Salt Lake City, Utah, fits the bill.
Utah has consistently ranked among the top states for business, partly thanks to its diverse economy with thriving industries such as technology, healthcare, and outdoor recreation.
However, before making the big move, it’s essential to understand the cost of living in Salt Lake City. While it’s generally affordable compared to other states, you still need to know what to expect when it comes to housing, transportation, and other living expenses.
Learn the cost of living in Utah and other pertinent details in this infographic if you plan to move there.
Average cost of living in Salt Lake City, Utah
Of the 50 U.S. states,Utah ranks 30th for the lowest living costs.
Utah’s per capita personal consumption expenditure (PCE) amounted to $47,653 in 2021.
PCE measures the amount individuals and households spend on goods and services within a specific region. Food, accommodations, healthcare, vehicles, and recreational goods constitute this list, among other things.
At $47,653 in 2021, Utah’s PCE is slightly lower than the U.S. per capita average of $47,915. Moreover, the state’s PCE increased by 16.3% from 2020 to 2021, which indicates economic growth.
The state’s consumer price index (CPI) rose 6.41% between 2022 and 2023.
Housing costs in Salt Lake City, Utah
From 2017 to 2021, the median value of owner-occupied housing units was $380,200.
The median or midpoint value of the prices of all the homes that owners occupy in Utah is $380,200, significantly higher than the national average of $244,900.
The price point means you can enjoy an improved quality of life and higher property values if you want to enter the real estate market. However, this also means that the cost of entry is significantly higher than in other states.
The median gross rent in Utah is $1,141 between 2017 and 2021.
In the same timeframe, Utah’s median-selected monthly owner costs with and without a mortgage were $1,739 and $522, respectively.
Cost of groceries in Salt Lake City, Utah
Utah has a slightly higher grocery CPI at 100.2 than the national average.
The monthly recommend amount for food per person is $341.42.
Transportation costs in Salt Lake City, Utah
Salt Lake City‘s estimated transportation cost is $5,316 per adult.
The estimated transportation cost in Salt Lake City is as follows:
- One adult: $5,316
- Two adults, one child: $11,691
- Two adults, three children: $$15,073
These costs include getting a used car, auto insurance, gas, auto maintenance, and public transportation. It’s a good thing that Salt Lake City also has a decent walkability score and is very bikeable; hence, you can complete some errands without using automobiles.
Apart from that, its robust public transportation network of roads, buses, light rail, and commuter rail ensures you have many low-cost transportation options.
Utah’s transportation CPI is higher than the national average of 100.
Utility costs in Salt Lake City, Utah
Utah’s utilities are at 92.3, slightly below the national average.
State residents only pay $1,452 annually for electricity.
Healthcare costs in Salt Lake City, Utah
Utah’s healthcare costs rate is at 91.9, putting it significantly below the national average.
The average adult Utah resident only spends $2,980 on healthcare.
Taxes in Salt Lake City, Utah
Residents pay a flat income tax rate of only 4.85%
Utah has a flat income tax rate of 4.85%. This rate applies to individuals and married couples filing jointly and bases income tax on federal adjusted gross income with a few modifications. The state’s flat tax rate is relatively low compared to other states with a flat tax rate.
For entrepreneurs and high-net-worth individuals, there are many more intricacies regarding taxes. Consulting with a CPA and a tax strategist will be well worth it to ensure you get every last penny out of your hard-earned money.
The average per capita collection in Utah is $1,999.
How to reduce your living costs
Create a budget and evaluate grocery spending
Move to a neighborhood with a lower cost of living
Cancel unnecessary or unused subscriptions
Switch to an electric car to decrease gas usage
Buy generic medicine when possible
Use solar power to cut down your electricity bill
As mentioned, solar energy has become increasingly popular in Utah, and it’s a good time to invest in solar-producing technology. Installing solar panels can help reduce electricity costs as the installation produces energy by siphoning it off the sun’s radiation.
According to research, you can save as much as $20,745 on electricity over a 20-year window. Not only are you saving money, but you’re also contributing to preserving nature.
Find cheaper insurance policies
Shopping for cheaper insurance rates, bundling policies, increasing deductibles, and other strategies can help reduce insurance costs.
More affordable insurance involves reducing the risk level the insurance company takes. Insurance companies determine insurance premiums’ price based on the risk of insuring a particular individual or asset. If you or your assets are deemed high risk, the insurance premiums will be higher.
Pay off debts in full to reduce interest expenses
Consolidate your debts to get more favorable terms
A one-way ticket to Salt Lake City, Utah
Utah is a great state to move to if you’re searching for a place with a good job market, stellar economy, and virtually limitless access to nature and recreation. Aside from these perks, moving to Utah is a sound financial decision. Knowing the cost of living in the state by using this resource is a step forward to achieving your dream.
To ensure your finances are in good hands, consider working with a professional wealth coach from TenCap. At TenCap, we work with our high-net-worth customers to achieve a distinct level of clarity and understanding regarding their assets and future. Through empowered financial planning and education, we foster confident investors.
Contact us today and schedule a TenCap wealth coaching session today!
Nick trains and develops families in creating, maintaining, and growing wealth. This includes educating clients on the science and academics of investing, comprehensive financial planning, and ongoing coaching to ensure discipline for a lifetime. Nick has seen this create incredible levels of freedom, fulfillment, and love for the families he works with.