Wanting on the nationwide map of the place within the U.S. properties are being constructed the quickest, nearly the whole state of Utah stands out as a obvious scorching spot.
Utilizing Census Bureau knowledge, Axios just lately compiled a county-by-county nationwide map of the place housing models are rising the quickest throughout the U.S. Whereas some geographically smaller counties in Texas boast a few of the highest percentages, Utah is excessive on the nationwide listing, too — however with a excessive focus of quickly rising counties statewide.
What’s taking place in Utah?
The story right here, particularly over the past 12 months, is actually one among a housing growth. The truth is, in 2021 Utah noticed a “record-breaking dwelling constructing 12 months” — one that’s beginning to make a dent within the state’s cussed, yearslong housing scarcity that was driving up dwelling costs even earlier than the COVID-19 pandemic despatched the market haywire.
That’s in keeping with a brand new report launched Monday written by James Wooden, an Ivory-Boyer senior fellow on the College of Utah’s Kem C. Gardner Coverage Institute, and commissioned by the Salt Lake Board of Realtors.
- In 2021, Utah’s variety of new housing models permitted far exceeded that of latest households (for instance, marriages, divorces, college students going to school or internet in-migration): 40,144 housing models in comparison with 26,689 new households, in keeping with the report.
So what’s Utah’s housing scarcity now? After the file dwelling constructing 12 months of 2021, Utah’s statewide cumulative housing scarcity now stands at 31,000 in comparison with about 56,000 in 2017.
- “The housing scarcity shouldn’t be interpreted as 31,000 homeless households, however slightly as an indicator of a ‘tight’ and unhealthy housing market characterised by very low emptiness charges and a rising share of households doubling up,” Wooden wrote within the report, in keeping with a information launch from the Salt Lake Board of Realtors. “Nonetheless, a housing scarcity persists at a a lot decrease degree.”
What’s driving Utah’s housing growth?
Utah, which has constantly ranked as one of many fastest-growing states within the nation, has skilled speedy inhabitants progress for years, and is very identified for its younger inhabitants.
The state, particularly just lately, has additionally seen an uptick in in-migration as out-of-state movers uncover it as comparatively reasonably priced in comparison with different states like California, whereas additionally providing a formidable array of out of doors recreation alternatives for skiers, hikers, mountain bikers and extra.
In order increasingly younger Utahns search to begin their very own households or purchase their very own properties, that together with a rise in out-of-state movers is driving housing demand, and residential builders have been responding in earnest.
What sort of properties are being constructed?
Utah’s housing growth has been largely pushed by single-family dwelling constructing. Single-family properties made up 17,528 models or 44% of the share of all permits issued in 2021, Wooden wrote within the report.
- Subsequent got here flats. Builders had been issued 14,143 permits in 2021, making up 35% of all permits issued. That’s the very best variety of residence permits issued in a single 12 months in Utah’s historical past, Wooden wrote.
- Condos and townhomes got here in third place, with 7,895 permits issued, a 20% share.
What cities are constructing properties the quickest?
Certainly one of Utah’s southernmost counties is seeing the quickest share progress in housing models of every kind, in keeping with census knowledge.
- Washington County — dwelling to booming St. George close to standard Zion Nationwide Park — noticed a 4.7% increase to its housing stock from July 2020 to July 2021.
Single-family properties underneath development within the Lakeview Estates neighborhood in Lehi are pictured on Tuesday, July 19, 2022.
Kristin Murphy, Deseret Information
Now let’s zoom out and look north, to the Wasatch Entrance. Tooele County can also be amongst Utah’s quickest rising counties, population-wise and housing-wise.
- Tooele County — identified for its rural neighborhoods and huge boundaries stretching all the best way throughout Utah’s West Desert, together with throughout the Salt Flats — noticed a 4% improve to its housing inventory from July 2020 to July 2021, in keeping with census knowledge.
Nevertheless, Utah County is actually the place it’s at on the subject of single-family dwelling constructing, in keeping with Wooden’s report.
- Utah County — Utah’s second-most-populated county and residential to Brigham Younger College in addition to the state’s tech hall referred to as Silicon Slopes — noticed a 3.9% increase to its general housing stock in 2021, in keeping with census knowledge.
Virtually one-third of all single-family dwelling permits issued statewide had been issued in Utah County, totaling 5,512 models, Wooden wrote.
- Three cities in Utah County — Eagle Mountain, Saratoga Springs and Lehi — accounted for 60% of all the permits issued within the county, in keeping with the Salt Lake Board of Realtors report.
Utah County outpaced Washington County in single-family dwelling constructing, however Washington County wasn’t far behind. It ranked No. 2 amongst counties with essentially the most single-family dwelling permits in 2021, in keeping with Wooden.
- Salt Lake County — Utah’s most populated county — fell behind each Utah and Washington counties into third place, with 2,235 single-family permits issued.
How a lot is a house in Utah?
Apparently, as dwelling constructing continues to blow up throughout Utah, the median value of current properties far exceeded the median value of latest properties in 2021, in keeping with the Salt Lake Board of Realtors report. That’s although new dwelling costs have traditionally been larger than current properties.
- In Salt Lake County, the median value of a brand new dwelling has usually been 18% larger than that of an current dwelling since 2005. However within the second quarter of 2022, Salt Lake County’s median value of an current dwelling, $603,000, was 25% larger than the median value of a brand new dwelling, $482,300.
“Why the change? Location, location, location,” Wooden wrote within the report. “Many new dwelling developments are on the periphery, therefore appreciable distance from employment facilities. Thus, the value hole is partly an indicator of the premium the homebuyer is prepared to soak up or pay for an current dwelling nearer to employment facilities, thus avoiding lengthy commutes from far-flung new subdivisions.”
