Consumer sentiment trends in Utah and nationwide, key cost-of-living pressures and the role economic data plays in shaping policy decisions aimed at improving affordability are on the minds of residents of the Beehive State and those tasked with interpreting the data.
And according to those experts, the good data points are often offset by matching pain points.
“Even though Utah is doing well in terms of wage growth and job growth, people are still concerned about their costs,” senior research economist Praopan Pratoomchat said Wednesday during a panel discussion at the University of Utah.
The Kem C. Gardner Policy Institute hosted a Newsmaker Breakfast on Wednesday focused on affordability and Utah’s consumer economy as rising housing, health care and everyday costs continue to strain household budgets across the state.
“Over 18% of households are spending 10% or more of their income on health care in a year. That’s 12th highest when we compare it to other states and about 3% higher than the national average,” senior health research analyst Melanie Beagley said.
The panel addressed rising housing prices, health care costs and everyday expenses, which speakers said continue to weigh on household budgets.
Inflation slows, but price pressures linger
Robert Spendlove, senior economist at Zions Bank, said, “In the latest data, inflation (in Utah) was down from 2.7% to 2.4%. However, prices are up 26% in the last five years.”
He emphasized that consumers are feeling the struggle of increased prices.
Spendlove said that other data shows the deterioration of the labor market over the last few years.
“In 2021 and 2022, we were growing by 500 to 800,000 jobs a month. What we found in 2025 is that we’re only growing about 15,000 jobs a month,” he said.
Despite this, unemployment is historically low.
Spendlove shared that Utah’s unemployment rate is around 4.3%.
“If you want to find a job, you can find a job,” Spendlove said.
Population growth fuels soaring home costs
Dejan Eskic, a researcher at the Gardner Policy Institute, spoke on housing, construction and real estate.
He began with a humorous slide comparing a young family standing in front of a modest starter home in the mid-1900s with a modern family posing in front of a Sprinter van as their “starter home.”
Housing costs in Utah are largely driven by population growth.
Pointing to a graph showing steadily rising numbers, Eskic said, “The last time we had a population loss in Utah was 1947.”
Utah had the strongest housing demand in the country between 2020 and 2024, followed by Florida and Colorado.
“We’re in a league of our own when it comes to housing demand,” Eskic said.
Affordability depends on where you sit: Owning vs. renting
Phil Dean, chief economist and research director at the Kem C. Gardner Policy Institute, who moderated Wednesday’s discussion, noted seeing two conflicting articles several months ago.
One reported that Utah is among the most expensive places to buy a house, while the other said it is one of the most affordable.
“It depends on who you are,” Eskic said.
“If you’re a homeowner, aside from property taxes, your housing costs stay relatively fixed while your income grows.”
Conversely, responding to Dean’s point, Eskic said about 45% to 47% of renters pay more than 30% of their income on housing.
“Utah is affordable if you’re already in the housing market,” he said, “but if you’re a renter trying to save for a down payment, your opportunities are bleak.”