Let’s say you own a home in Provo. Home prices are still inching up, but the local market is not as hot as it once was. You’ve got equity. You’ve got options. Now you’re wondering, should you rent it out or sell while things are still strong?
The idea of extra rental income sounds great. So does a clean sale and a nice profit. But which one helps you build long-term wealth, or at least avoid financial regret?
This guide breaks down renting vs. selling your house in plain terms. You’ll get the latest numbers, the pros and cons, a few examples to help make your choice easier, and how to make a call that works for your goals and your future.
What’s Going on With Provo’s Housing Market?
The housing market in Provo is shifting in 2025, and it’s not as straightforward as it used to be. Price growth is slowing, listings are staying on the market longer, and buyers are becoming a bit more selective.
- According to Zillow, the average home value stands at $476,570, with a 2.6% increase over the past year. The median sale price is $ 474,457, while the median list price is slightly higher at $497,949. Provo also has an average rent of $1,394 as of March 2025.
- Meanwhile, Reventure Data reports that homes in Provo, Utah, are taking longer to sell, with the median days on market increasing to 77 days, a 16.7% rise from the previous year.
Highlights: Prices are still climbing but more slowly, and homes are sitting longer before they sell. Buyers have more room to negotiate. If you’re selling, you might need to be flexible. If you’re renting, that steady rent check looks pretty solid, especially if you’re weighing renting vs. selling your house.
If You Sell, Here's What You’re Signing Up For
Selling your home in today’s market has its perks, but it’s not all profit. Here’s what you need to weigh before calling an experienced real estate agent or a property manager:
The upside
Selling your home can offer some clear financial benefits, but it’s essential to consider the whole picture before making a decision.
- Home values are still high, so you can walk away with solid cash in hand.
- You can use that equity to level up—bigger down payment, pay off debt, or invest.
- Once it’s sold, you’re done. No tenants, no maintenance, no strings attached.
The trade-offs
While selling can bring in quick cash, it also comes with a few financial and long-term considerations worth thinking through.
- You’ll have to cover closing fees, agent commissions, and maybe property taxes.
- Selling means you're out of the market—no more rental income, no future appreciation or capital gains. Before deciding, weigh the pros and cons of renting vs. selling your house to make the best choice for your future.
Renting Your House = Building Long-Term Wealth
Renting out your property can offer steady income and long-term benefits, but it comes with its own set of responsibilities. Before deciding, it’s essential to weigh the potential rewards against the demands of being a landlord.
Why might it make sense?
Renting out your property can be a solid choice if you’re looking to generate a steady income and build wealth over time.
- Rent in Provo is strong, at over $1,300 a month, which helps cover your mortgage payment and possibly more.
- You continue to build equity while keeping the real estate investment.
- Tax breaks for depreciation, repairs, and property management fees can add up.
Things You Have to Be Ready For
When considering renting vs selling your house, these factors are essential to keep in mind:
- Being a landlord takes time dealing with repairs, tenants, and possible vacancies.
- Upfront costs, such as insurance and maintenance, can cut into your cash flow.
- If the market dips or your property sits empty, your income could take a hit.
Mortgage Rates and Monthly Payment Implications
Mortgage rates—and more broadly, interest rates—directly impact your monthly payment, whether you’re buying again or holding onto your current property. Understanding how these rates, along with additional expenses like closing costs, affect your budget is key to making the right financial move.
- In 2025, average mortgage rates are projected to be around 6.3%, according to Investopedia.
- That’s better than the 7% highs we saw recently, but still well above the 4% many homeowners locked in the past few years.
Key Takeaways: When weighing renting vs. selling your house, mortgage rates are a major factor. If you’ve got a low rate, it’s hard to beat the long-term financial goals and gains of holding onto your property and renting it out. Selling would mean buying again at today’s rates, and that might not be a fun trade.
So... What’s the Best Move?
It depends on your situation. Ask yourself:
- Do you need cash now? Selling could give you a quick payoff.
- Are you trying to build long-term wealth? Renting might get you there, especially if you’re in no rush. If you're unsure, renting vs. selling your house can depend on how each option fits into your overall strategy.
- Do you want to be a landlord? It’s not for everyone. If the thought of 3 a.m. plumbing emergencies makes you feel uncomfortable, no shame in selling.
- How’s your emergency fund? If you keep the place, you’ll want some backup cash for unexpected repairs or when a tenant moves out.
Make the Smarter Choice through Market Trends and Advice from Provo Property Experts!
Trying to decide whether to rent out your home or sell it in today’s Provo market can feel overwhelming. The numbers matter—but so does your long-term game plan.
Wolfnest’s Rent vs. Sell Calculator is a great first step to run the numbers. You also have the option to talk to an experienced agent to get a clearer picture of what works for your situation.
If you're leaning toward renting, having the right property management team on your side can make all the difference.
At Wolfnest, we don’t just help you maintain a property. We help you turn it into a smart investment. Our services include:
- Detailed market analysis to price your rental right
- Full-service property management with tenant screening and rent collection
- Coordination of repairs and energy-efficient upgrades
- Monthly financial situation reports and year-end tax-ready statements
- Guidance from local financial experts who know the Provo market conditions inside out
Whether you’re ready to rent, sell, or are still weighing the pros and cons, we’re here to help. Don’t make a big decision without a clear plan.
Schedule a consultation with our team today and let’s determine what works best for your goals.
FAQs
What are the current rental housing limits for Utah County?
The Provo-Orem Metropolitan Statistical Area (MSA) establishes rental housing limits in Utah County. These limits can vary depending on factors such as household size and income. For the most accurate and up-to-date information, consult the official guidelines provided by the Provo city government. Understanding these limits can help you determine whether renting out your home is the best strategy compared to other investments.
Is it legal to sell a rental property in Provo with a stipulation that it must be sold to an owner-occupant?
Yes, it is legal to sell a rental property with a stipulation that it be sold to an owner-occupant. However, the condition of living and renting in the primary residence must be clearly stated in the property listing and sales contract to ensure all parties are aware of the requirement. In a hot market with multiple offers, this kind of stipulation should be communicated early to avoid confusion.
Do I need special insurance to rent out my home in Provo?
Standard homeowners' insurance may not cover rental activities. It's advisable to obtain landlord or dwelling insurance, which provides coverage for property damage, liability, and potential loss of rental income. Managing insurance, tenants, and property maintenance can be time-consuming, so working with a property manager may be part of the best strategy for some homeowners.
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