How Expensive Is It to Live in Utah?

The cost of living represents the financial outlay needed to maintain a certain quality of life in a specific location, covering essential expenses like housing, food, transportation, and healthcare. It serves as a benchmark for understanding the money required for basic necessities. This article provides an overview of the expenses associated with living in Utah, offering insights into the state’s financial landscape.

Overall Cost of Living

Utah’s overall cost of living presents a varied picture when compared to the national average. While some data suggests the state’s overall cost of living index is approximately 95.8, indicating it is below the national average of 100, other analyses place it slightly higher, at around 1% above the national average. Metropolitan areas within Utah generally exhibit higher costs than the state’s average.

For instance, Salt Lake City’s cost of living is reported to be 8% higher than the national average. In 2024, several Utah metro areas, including Salt Lake City at 109.5 and St. George at 108.1, had cost of living index scores exceeding the national average. This marks a significant shift from 2014, when Utah’s metro areas had an average index score of 93, indicating a more rapid increase in living costs compared to other parts of the United States. Housing and transportation expenses are the primary drivers behind Utah’s higher composite index scores.

Key Expenditure Categories

The financial landscape for Utah residents is shaped by several major expenditure categories. These include housing, utilities, transportation, food, healthcare, and miscellaneous expenses. Understanding the typical costs within each area provides a clearer picture of the state’s financial demands.

Housing

Housing costs are a primary component of living expenses in Utah, often exceeding national averages. The median rent for a one-bedroom apartment in the state is approximately $1,100 per month, while a two-bedroom unit averages around $1,277 monthly. In Salt Lake City, these figures are generally higher, with one-bedroom apartments averaging about $1,461 and two-bedroom units around $1,823. The fair market rent for a two-bedroom apartment in Utah, including utilities, is estimated at $1,398.

Purchasing a home also represents a significant investment. The median sales price for a single-family home statewide was $547,700 in the fourth quarter of 2024, with some January 2025 data indicating a median price of $566,800. For condominiums, the median price in the Salt Lake City area was forecast to be $436,000 in 2024. Property taxes in Utah are relatively low, with an effective rate of 0.57% of property value.

Utilities

Utility expenses in Utah are generally lower than the national average, though costs can vary. The average total monthly utility bill for a household ranges from approximately $271 to $345.62. Specifically, electricity bills average around $80.87 to $93.75 per month. Natural gas typically costs around $35 to $52 monthly.

Water bills average about $38 to $41 per month for general household use. In larger metropolitan areas like Salt Lake City, a monthly water bill for two people can be around $140. Internet services generally cost between $30 and $97 per month. These figures reflect Utah’s relatively inexpensive electricity and water rates, influenced by factors such as renewable energy resources and a temperate climate.

Transportation

Transportation expenses are a notable category, influenced by vehicle ownership and public transit options. The average price for regular gasoline in Utah was around $3.579 per gallon in August 2024. For those relying on public transportation, the Utah Transit Authority (UTA) offers a monthly pass for approximately $85, providing access to bus and rail services primarily in urban areas.

Vehicle ownership entails additional costs beyond fuel. Average car insurance premiums in Utah range from $152 to $179 per month for full coverage, or about $1,825 to $2,146 annually. Minimum coverage policies can be lower, averaging $103 per month. Vehicle registration fees vary based on the vehicle’s weight, age, and fuel type, with additional fees for electric and hybrid vehicles.

Food

Food costs in Utah are generally comparable to or slightly below national averages. An individual can expect to spend approximately $259 to $282.23 per month on groceries. For a family of four, the monthly grocery bill averages around $1,040. Dining out also contributes to food expenses, with casual meals costing about $15 and mid-range restaurant meals potentially reaching $50. Utah’s grocery costs rank among the lower end nationally, making it a more affordable state for at-home food preparation.

Healthcare

Healthcare expenses are a significant consideration for residents. The average monthly cost for a benchmark Marketplace health insurance plan in Utah is about $507. Many residents qualify for subsidies, which can reduce the effective monthly premium to as low as $48. Annual healthcare costs per person are estimated to range from $5,735 to $9,000, depending on coverage and individual needs. These figures include expenses for health insurance premiums, though specific costs for doctor visits and prescription drugs can fluctuate based on insurance plans and medical requirements.

Miscellaneous

Beyond the primary categories, miscellaneous expenses contribute to the overall cost of living. These include personal care items, entertainment, and clothing. Non-essential expenses like entertainment and grooming services are reported to be about 12% lower in Utah compared to the national average.

Geographic and Economic Influences

The cost of living in Utah is shaped by its diverse geography and dynamic economic landscape. A notable distinction exists between the state’s urban and rural areas, impacting expenses across various categories. Major metropolitan centers like Salt Lake City, Provo, and Ogden generally experience higher housing costs and a more competitive real estate market compared to rural parts of the state. While housing in surrounding cities and smaller towns tends to be more affordable, counties such as Salt Lake and Washington face severe housing unaffordability.

Utah’s rapid population growth is a powerful factor influencing its cost of living. This demographic expansion, driven by high birth rates and substantial in-migration, creates increased demand across all sectors. The surge in population directly affects the housing market, leading to rising property values and rental rates. This sustained demand has resulted in a shortage of affordable housing units, with projections indicating a need for tens of thousands of additional homes.

The state’s robust and diversified economy also plays a role in shaping costs. Utah boasts a strong job market with a low unemployment rate, typically ranging between 3.2% and 3.5%. Key industries contributing to the state’s gross state product include technology, healthcare, finance, tourism, and manufacturing. The presence of significant natural resources, such as petroleum and natural gas, influences the energy sector, affecting utility costs.

Income and Household Budgets

Understanding the relationship between income levels and living expenses is important for assessing affordability in Utah. The state’s median household income stands at approximately $91,750, with some data suggesting it reaches $95,800. When adjusted for cost-of-living differences across states, Utah’s median household income, at around $98,336, ranks notably higher than the national average of $77,719. This indicates that middle-income households in Utah generally earn more than their counterparts in most other states.

Despite higher median incomes, affordability remains a challenge for many residents. The rapid increase in real estate costs has outpaced wage growth, contributing to an ongoing housing affordability crisis. To afford a median-priced home in Utah, a household typically needs an annual income exceeding $130,000. For renters, adhering to the common guideline of spending no more than 30% of gross income on housing, an average monthly rent of $1,560 would necessitate an annual income of approximately $62,400.

These figures underscore the importance of careful financial planning for residents. The disparity between income and housing costs means that many households, particularly those earning less than $40,000 annually or those who rent, face significant financial strain. Balancing income with the state’s evolving cost structure requires diligent budgeting and consideration of where within the state one chooses to reside.