Michael Peterson, a 37-year-old paralegal at a Draper law firm, closed on a three-bedroom condominium in Herriman in late August after spending nearly a year searching for a way off the rental treadmill.

She had been paying more than $2,000 a month for a one-bedroom apartment in southern Salt Lake County, the Deseret News reported. Her agent helped negotiate the condo's price down from $342,000 to around $320,000, keeping her monthly payment close to what she had been paying in rent. Peterson borrowed her down payment from her workplace retirement account and is repaying it through payroll deductions.

The purchase came with a $220 monthly homeowners association fee. Peterson told the Deseret News she views the condo as a first step toward someday owning a single-family home with a yard.

Her story lands as a new study commissioned by the Salt Lake Board of Realtors paints a mixed picture for young buyers statewide. Economist James Wood found that 50.1% of Utah households headed by 25- to 34-year-olds owned their homes in 2024. That rate still tops the national figure of 40.4%, according to the Salt Lake Board of Realtors, but it has slid from 54.3% in 2010 and 51.5% in 2019.

The study pointed to several factors keeping Utah above the national average: a median income of $102,400 for young household heads compared with $93,200 nationally, an 84% employment rate among 25- to 34-year-olds and a growing supply of condos and townhomes priced about 30% below single-family homes.

Draper prices add local pressure

Those statewide numbers mask sharper pain in Draper. A Salt Lake Board of Realtors affordability report placed Draper's median single-family home price at $925,000 in the second quarter of 2026, requiring a household income of about $259,641 to afford, according to the Deseret News.

Draper Mayor Troy Walker told the Draper Journal in December 2025 that three of his adult children live under his roof despite having college degrees and jobs. "I'd rather they pay me a little rent and save than never get out of the hole," Walker said. "Prices keep going up and interest rates haven't come down to a level viable for younger people."

Mortgage rates have compounded the squeeze. The weekly average for a 30-year fixed-rate mortgage hit 7.03% on Sept. 24, according to Freddie Mac data reported by the Deseret News. The Oct. 27 Deseret News article described rates as still above 7%.

A University of Utah Kem C. Gardner Policy Institute report pegged the estimated average monthly mortgage payment on a median-priced Utah home at $3,669, a figure the institute said puts homeownership beyond what about 91% of the state's renters can afford, according to the Deseret News.

What comes next

Salt Lake Board of Realtors President Scott Colemere told the Deseret News that condos and townhomes are a more realistic financial fit for first-time buyers than the single-family homes that once served as starter properties. He suggested buyers save at least $15,000, work with a real estate professional and shore up their credit.

State Housing Coordinator Steve Waldrip, who serves as Gov. Spencer Cox's housing adviser, said rising interest rates have slowed progress toward Cox's goal of building 35,000 starter homes by the end of 2028. The Deseret News reported the state is about a quarter of the way there. Waldrip said new initiatives to boost starter-home construction are being developed for the upcoming Utah Legislature session.

Draper's own Moderate Income Housing Plan lists 3,345 entitled residential units that have not yet received building permits. The city's report cited elevated interest rates as the primary barrier to development.

Peterson, meanwhile, has already repainted her Herriman condo, swapping the original gray walls for lighter colors to make the space look bigger.