LATEST NEWS

Report: Utah faces housing shortage, skyrocketing prices

May 1, 2018, 10:21 PM | Updated: May 2, 2018, 1:38 am

SALT LAKE CITY, Utah – The affordability of homes, condos and apartments in Utah is being threatened due to skyrocketing prices, lack of income growth and a shortage in available housing units, according to a new report from the University of Utah’s Kem C. Gardner Policy Institute.

“While the impact of higher housing prices are widespread, affecting buyers, sellers, and renters in all income groups,” the study reads, “those households below the median income and particularly low income households are disproportionately hurt by higher housing prices.”

The report, “What Rapidly Rising Prices Mean for Housing Affordability,” details the rise of Utah’s economy since 2010 and the accompanying population growth. Together, the growth “produced exceptionally strong demand for housing, which in turn has put upward pressure on housing prices.”

In addition, Utah is also having a housing shortage, with existing homes “falling short of demand,” the report says.

“The big issue here now is that we are not building enough housing to meet the households that are growing in Utah,” Clark Ivory, CEO of Ivory Homes, said during a panel discussion Tuesday at the Kem C. Gardner Policy Institute.

The University of Utah’s Kem C. Gardner Policy Institute released its new report Tuesday titled, “What Rapidly Rising Prices Mean for Housing Affordability.”

“It’s chaotic. In a word, it’s chaotic,” Amy Wilson, a realtor who lives in Salt Lake County, said of the current housing market. “We just cannot keep up with the demand.”

Wilson said buyers grow frustrated as they try to compete against other buyers for the existing inventory. Homes listed for sale get numerous purchase offers, she said.

“I’ve listed homes over the last few months where we had cash offers within an hour,” Wilson explained.

About 120,000 households in Utah are facing a “severe housing cost burden,” according to the report, because they are paying more than 50 percent of their income toward housing.

Over the past quarter century, the report says Utah’s annual increase in home prices has been 5.7 percent. Should that rate of increase continue for the next 26 years, the median price of a home along the Wasatch Front would be $1.3 million.

“Even when applying the real rate of increase (inflation adjusted) over the past 26 years of 3.32 percent, the median price would be $736,600” the report goes on to say. “And if this real rate of increase is cut in half to 1.7 percent the median price would still be $483,000 in real dollars; equivalent to Seattle housing prices in 2017.”

About 120,000 households in Utah are facing a “severe housing cost burden,” according to a new report from the University of Utah.

Further threatening the affordability of housing would be a rise in home mortgage interest rates to six percent, which the report says, “would jeopardize homeownership opportunities for many households with higher incomes and seriously reduce housing affordability in Utah.”

The increasing cost of housing could one day affect Utah’s competitive advantage in attracting new businesses to the state, the report says.

“The median sales price of a home in Utah’s two large metropolitan areas is already 20 percent higher than home prices in Boise, Las Vegas, and Phoenix: three cities Utah competes with for new business expansions,” the study says.

To combat these threats, the Salt Lake Chamber on Tuesday announced the creation of the Housing Gap Coalition.

Derek Miller, president and CEO of the Salt Lake Chamber, announces the launch of the Housing Gap Coalition.

“It’s about increasing supply to match the demand so that we don’t have inordinate pricing increases,” said Derek Miller, president and CEO of the Salt Lake Chamber.

The coalition has a goal of addressing Utah’s housing issues before they create a crisis.

“We don’t want to lose that competitive advantage that we have today,” said Steve Starks, chair of the Housing Gap Coalition and president of Larry H. Miller Sports.

Members of coalition say finding a new housing balance in Utah will take educating cities and towns about how to build the right kind housing.

“Right now we’re consumed with single family homes,” said Abby Osborne with the Salt Lake Chamber and also part of the new Housing Gap Coalition.

“Right now, we’re consumed with single family homes,” said Abby Osborne with the Salt Lake Chamber and also part of the new coalition. “We’ve really got to get ahead of this problem, because there’s nowhere for us to go. We’re constrained by mountains, we’re constrained by the lake. We don’t have luxury to just continue to sprawl.”

“At the end of the day, there’s not going to be a single solution,” Starks said. “But what are the options? And what are the levers we can pull now that will impact us 20, 30, 40 years down the road.”

KSL 5 TV Live

Top Stories

Latest News

$400 million set aside for tax cut...
Brooke Williams and Larry D. Curtis, KSL TV

Gov. Cox signs controversial bills on trans surgeries, student vouchers

Gov. Cox signed two bills Saturday morning and released statements regarding each.
8 days ago
police cars lined up by school...
Brooke Williams

UPDATE: Three in custody after shots fired at Taylorsville High School, police said

Three are in police custody after gunshots were fired in the parking lot of Taylorsville High School Thursday afternoon.
10 days ago
...
Madison Swenson, Brooke Williams, Ladd Egan, & Michael Houck, KSL-TV

UPDATE: West Valley City Police found driver of deadly hit and run

Police are searching for the suspect of a fatal hit and run that happened Monday night in West Valley City.
3 months ago
Crime scene tape and a UPD vehicle by a car involved with the shooting, damaged....
Brooke Williams and Lauren Steinbrecher, KSL TV

Woman injured in Murray shooting Sunday

A shooting in Murray between several drivers.
3 months ago
Black plumes of smoke and fire from plane crashing...
LM OTERO and JILL BLEED Associated Press

Two aircraft collide, crash during Dallas air show

The Federal Aviation Administration says two aircraft have collided at air show in Dallas. It was unclear how many people were on board the aircraft and if anyone on the ground was hurt. Emergency crews were responding to the scene at the Commemorative Air Force Wings Over Dallas show at the Dallas Executive Airport. The FAA says a Boeing B-17 Flying Fortress and a Bell P-63 Kingcobra collided and crashed around 1:20 p.m. Saturday. Several videos posted on Twitter showed two aircraft appearing to collide in the air before they both rapidly descended, causing a large fire and plumes of black smoke to billow into the sky. The FAA and the National Transportation Safety Board were launching investigations.
3 months ago
A young person is seen with an electronic cigarette in the bleachers....
Brooke Williams

More than 1 in 10 youth report current tobacco use, CDC announced

The CDC and FDA released a study that found 3.08 million, or 11.3% of middle and high school students reported using a tobacco product in the past 30 days.
3 months ago

Sponsored Articles

vintage photo of lighting showroom featuring chandeliers, lamps, wall lights and mirrors...
Lighting Design

History of Lighting Design | Over 25 Years of Providing Utah With the Latest Trends and Styles

Read about the history of Lighting Design, a family-owned and operated business that paved the way for the lighting industry in Utah.
Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports...
Brian Huston, CE and Anthony Perkins, BICSI

Why Every Business Needs a Structured Cabling System

A structured cabling system benefits businesses by giving you faster processing speeds and making your network more efficient and reliable.
notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 Reasons You May Want to Consider Apartment Life Over Owning a Home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Report: Utah faces housing shortage, skyrocketing prices