According to the Kem C. Gardner Policy Institute, average rental prices along the Wasatch Front climbed more than 20% from 2020 to 2021. While the State of Utah’s Housing Market Report (report) does note contraction in the housing market in 2023, the implications of interest rates and the pandemic on Utah’s housing market are enduring: from 2021 to 2023, the income required to finance the median priced home in Utah increased by 52.1%.
Aware of the challenges facing both Utah’s prospective homebuyers and renters, Legislators have invested more than $350 million in various projects aimed at affordable housing during the last five General Sessions. As discussed in this post from 2022, affordable housing relates to homelessness but is focused on helping a different set of constituents.
In the 2021 General Session, policymakers were inundated with resources provided by a revenue surplus and also pandemic aid from the federal government. This trend persisted through the 2023 General Session, as can be seen in the graph above. Due in part to above trend revenues (growth that was not likely to persist) and the fixed nature of federal stimulus dollars, most of the housing investments were focused on one-time projects.
It should be noted however, that the $72.8 million in one-time funding put towards loan programs is designed to boost the state’s housing in perpetuity. The largest investment area has been housing preservation, in which various tools are employed ensure that rental properties that are currently considered affordable continue to be a financially viable option. Housing preservation reduces displacement, maintains land use patterns, and is generally cheaper than building new infrastructure.
At the time of publication, the report forecasted an increase in Utah’s housing shortage for 2024. While housing affordability remains a challenge, the investments made over the last five years aim to tip the momentum in favor of Utah’s taxpayers.
A summary brief including funding items through the 2024 General Session is available here: Recent Legislative Investments in Housing.