Utah is doing well economically because it’s an affordable place to set up business. However, numerous real estate problems threaten its competitiveness. It may have plenty of thriving housing markets, but there’s no denying that home ownership remains out of many people’s reach.
There are ways to purchase a property more affordable, like applying for a housing grant in Ogden or DIYing home buying across Wasatch Front. However, these solutions aren’t enough to remedy these pressing problems:
The Beehive State’s housing demand continues to outpace supply. This trend is expected to go on for up to four more years. Until then, Utah’s real estate markets favor sellers, giving them more power to command prices to make as much money as possible.
Rising Housing Prices
Property prices throughout America are rising, but Utah’s escalate faster than anywhere in the nation. As household income remain rather stagnant, the upsurge in mortgage interest is only making it harder for more individuals to afford home ownership. In fact, a study shows that Salt Lake City is one of the toughest housing markets in the country. When left unchecked, experts warn that it might discourage investors, and ultimately cause the state to lose its economic luster slowly but surely.
Increasing Rental Costs
The rental rates in the state are also above-average by national standards. Again, they’re more impactful on poorer people. Compared to those with median income, Utahns with low income are over 30 times more likely to shoulder the heavy burden of expensive housing costs.
Decreasing Land Supply
The state’s unprecedented population growth is starting to reshape its housing landscape. Considering that land supply is only going to head south, developers are now constructing to multi-family properties. This strategy has been effective in accommodating the needs of many buyers, but it can affect the lifestyles of occupants in many ways. Unlike traditional single-family homes, condo and town home units have smaller lots. Sharing walls with other homeowners comes with its own set of problems too.
So far, it’s too early to hit the panic button. But if things don’t go well in the near future, these housing woes might be turning into major social, health, and economic concerns.