The business news site Utah Business released a report on August 30 calling Utah’s housing market the “next California.” The commissioned report was authored by researchers with the University of Utah’s Kem C. Gardner Policy Institute. They described how Utah now has less inventory of available homes than the current amount of households that need housing in the state.
In addition to having a shortage of homes, researchers working on the study described Utah as having a “looming” affordability crisis. They noted that unless something is done to curb increasing housing rates in the state, then the amount that the average family spends on providing a roof over their head will soon reach 50 percent of their annual household income.
Currently housing costs in Salt Lake City are particularly high. In fact, the researchers found that they’re at least 20 percent higher than they are in Las Vegas, Phoenix and Boise. One researcher pointed out that it’s realistic that for members of the next generation, an average-sized, single-family home could go for as much as $700,000.
Many analysts suggest that increased regulatory red tape and the high cost of building supplies aids in keeping home costs in the state high. In fact, the report’s authors argue that at least 25 percent of a home’s cost is related to zoning concerns. The cost for critical building materials such as lumber has increased by an estimated 40 percent during the last year alone.
Population growth, improved business prospects and high labor and land costs have all continued to fuel price hikes in Utah’s real estate market.
An increase in economic opportunities in the state has attracted many developers to Utah who are eager to buy land or build new home communities. Whether you’re planning to purchase land, set up a homeowners’ association or offer up homes for sale to area residents, a St. George real estate law attorney can make sure that your interests are protected as you move forward in doing this.