Residents of Springdale, Utah, will have a harder time of becoming a homeowner than anyone else in the state, based on an analysis that recorded a significantly high median home price when compared to the average salary.

The median home price and salary in the Washington County town cost almost $552,000 and around $61,500, respectively. UnitedStatesZipCodes.org used both statistics to determine the least affordable places to buy a house in the state. If you still plan to look for a house, you’ll need a reliable mortgage company in Utah to know where to get the best deal for your money.

Why Springdale is Expensive

Springdale isn’t expensive because of a higher demand for homes than the available supply. The town’s location makes it harder to build more houses, which then affected construction expenses since it’s far away from building companies and suppliers. A lack of developable land and the steep price of existing lots also exacerbate the problem.

This led several people to look for homes outside the town and endure the long commute to and from Springdale. As a result, leasable properties are also expensive because landlords have the upper hand in terms of setting rental rates. The town council, however, has thought of certain solution such as allowing cottage houses to solve the problem.

Other Unaffordable Places

Springdale isn’t the only place with a low income-to-housing ratio. Median home prices in Rockville are the second-most expensive at $333,300, but the median salary there is just around $50,630. Homes in Park City are technically the most expensive in the state, but the average salary in the city costs around $83,200.

Other places with affordable housing woes include Cedar City, Dammeron Valley, Ivins, Pine Valley and St. George. By contrast, the analysis ranked Monument Valley as the best place to buy a house in Utah. While the average salary in the region is just $18,750, the median home price only costs $34,600.

Mortgage Rates in Utah

Mortgage loan agreement application with house-shaped keyring

Once you decide on where to buy a house, the next thing to do requires some research on the prevailing interest rates for a housing loan. A mortgage company in Utah may impose an interest rate of 3.9% for a 30-year loan, which is the average rate in August. The median rate for 15-year mortgages is currently at 3.41%.

If you plan to buy a house worth $281,400 in Salt Lake City, your monthly installments may cost $1,172 for a 30-year loan with a 4.44% interest rate and 20% down payment. In the Ogden-Clearfield area, you could pay $1,007 every month for a 30-year loan with a 20% down payment for a house worth $241,580.

Springdale’s affordable housing issue won’t likely end soon. If you think that homes in cities like Salt Lake City are still more expensive, it’s a matter of perspective since you’ll likely find it much easier to look for a decently priced house. A common issue, though, involves the right type of financing for a home purchase in metro areas.