1/31/2024 0 Comments One key homes![]() ![]() ![]() These types of units form excellent starter homes for young families that start building equity. The result is that starter homes are essentially illegal.īuilders have developed very attractive new homes with multiple units in the same building, in many cases designed in a way that looks like a large single-family home. Yet, of 35 local governments that were sampled in a recent Envision Utah study, only nine allow lots less than 7,000 square feet in any single-family zone. Putting the exact same home on a 5,000 square foot lot rather than a 10,000 square foot lot can reduce the home price by 22%, while doubling the number of new units built. Utah has made some progress in decreasing required lot sizes, but we’re still, at about 10,000 square feet per new lot, far higher than where the market would go in the absence of zoning regulations. Luckily, national research, local stakeholder discussions and Utah public opinion all point to the same three reforms: allowing smaller lots, allowing more units on the same lot or in the same building (e.g., a duplex, town home, or basement apartment), and allowing the highest densities in mixed-use centers, which are places with housing, shopping, jobs and other destinations arranged close together in a walkable design. Of course, most zoning regulations exist for a reason, so we should target reforms for those regulations that have the highest impact on cost and the lowest public benefit. The converse is also true - less regulated markets often have more affordable homes. Areas with higher regulation tend to have lower permitting activity as well as higher prices. National research is clear: There is a strong correlation between strict zoning regulation and housing affordability. One key factor is government regulation, or zoning. So how do we stimulate more housing? That also has a simple answer: make it cheaper and easier to build. But if we can build more affordable new units, that’s even better. In fact, new homes will typically be more expensive than existing homes, but the new supply is critical. Even luxury, expensive units help, because the people who move into that housing open up homes for others. The solution is simply more housing - of all kinds. Spencer Cox: Our kids need paths to homeownership. ![]() How are young homebuyers affording homes these days? Help from mom and dad.Many others settle for something much smaller, or farther away, than they’d like. When there’s a shortage of homes, some people are forced to double up (maybe by living in their parents’ basements), and others experience homelessness. If you don’t have enough chairs, some people are left out, and the cost of the available chairs goes up. The result is like a game of musical chairs. That demand isn’t just people moving in from elsewhere (many of whom were born in Utah in any case), it’s also our own kids - Utah’s millennial and Z generations are a far larger percent of our population than is the case in the rest of the country.Īt the same time, multiple factors have constrained the construction of housing, including labor shortages, land and materials expenses, and, more recently, high capital interest rates. The root of the problem is that housing units haven’t kept up with high demand. This is a nationwide problem, although Utah has seen higher cost increases than most places. And we can do it without sacrificing quality of life in other ways.įirst, it’s helpful to put the housing affordability problem in context. If current trends continue, up-and-coming Utahns won’t have the same opportunities as prior generations to enter homeownership, they won’t have adequate space or financial capacity for a family, and they won’t be able to build intergenerational wealth.īut with some changes to our zoning ordinances, we can promote better affordability. When 76% of Utahns are unable to afford a median-priced home, we’ve reached a point of crisis. ![]()
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