Nov 02, 2023 11:39AM●By Braden Nelsen
This map puts into visuals just how high home prices in the state, and especially here in Davis, have gotten. Courtesy Photo
DAVIS COUNTY—Around the country, there are a number of states that are always expected to have high home prices. Hawaii is a literal paradise on earth with limited land and resources, California has traditionally great weather, fantastic entertainment, and a huge coastline, New York has abundant business opportunities, limited space, and a vibrant arts and entertainment industry, but Utah? Even with abundant space, and opportunities, Utah is keeping up withhouse prices, perhaps more than it ought to.
Bucking the trends of coastal metropolitan areas, Utah has become one of the top 10 most expensive states in which to buy a home, coming in number eight according to Forbes, just below Oregon, and above New Jersey. Residents of Utah know that it’s a great place to live, This is the place, after all, but why has it gotten to be so expensive?
As with any problem of this magnitude, the answer to that question is complicated. On the surface, Utah is a desirable place to live. Crime is relatively low as compared to other states on the top 10 list, small businesses thrive here, and metropolitan areas like Salt Lake City, Ogden, and even Provo are all within reasonable driving distance from most communities in the northern part of the state.
Utah is also an outdoor paradise, with five national parks, 46 state parks, and opportunities to hike, bike, boat, and more, what’s not to love? The State of Deseret shows off in the fall and winter as well, boasting jaw-dropping vistas of colorful trees, and snowcapped mountains. There’s also that “best snow on earth” that brings visitors from around the globe, but, still, would all these things justify being the eighth most expensive state in the union?
In addition to the attractive living conditions in the state, Utah faces a few issues that make housing a commodity. One of these factors is new builds. With expensive materials, the new builds cost more to make, which cost is passed on to the buyer, but, that is perhaps not the biggest issue with new builds.
One of the biggest problems, if not the biggest, is that most of the new builds going up in Utah are, simply put, not starter homes. Prospective homebuyers are seeing mini-mansions going up all across the Wasatch front, with upwards of four to five bedrooms, two to three full baths, and more features that, while extremely desirable, price out any sort of new home buyers.
Then there’s the issue of older builds. There are homes in Utah that go back two centuries, so it would stand to reason that there would beenough to go around. With older homes, another problem arises – many older owners are holding on to their homes, either as an inheritance for their own family or because they just don’t want to move. There’s also the issue that arises with people who own multiple homes, and rent them out to vacationers or on a short-term basis.
While the latter can and has provided positive competition for hotels, and other short-term stay options, it does create a scarcity for people looking to own their own home. The tragedy doesn’t end there either, unfortunately. Being in the top 10 of the most expensive homes in the United States would make most people think that income would also be competitive to compensate for those prices, but that sadly isn’t the case.
Even though Utah’s home prices come in at the eighth highest in the nation, the average income per capita puts the Beehive state at a dismal 35th place. Even though Utah’s median household income is higher, it still offers another explanation as to why so many families struggle to buy a home in the state.
Many programs, including here in Davis County, have been spearheaded in an effort to make home buying an easier, and more achievable goal, but there’s still a long way to go. For many Utahns, the American Dream of owning a home may have to wait a while longer.
