Experts believe that the demand for homes in Utah is exceeding the available supply, mainly because of the state’s increasing population that can either be a bane or boon for the housing sector.
Jim Wood, a University of Utah’s Kem C. Garner Policy Institute economist, said that the rapidly growing number of households in Utah has surpassed the number of new homes for the first time in 40 years. This inevitably boosts demand for the construction of houses, something that can be positive for job growth and the economy.
On the flip side, a rising population certainly has its pitfalls.
The construction of new homes to accommodate more people is easier said than done and not everyone is capable of buying their own residential property. Home loans in Utah provide you with a chance to finance a property acquisition. It’s relatively simple to apply for a mortgage in the state, but the problem lies elsewhere.
Home builders are constructing homes at their peak capacity, according to Wood. These companies see a huge demand for their projects that almost instantly becomes sold out. Even if they wanted to launch more projects, issues such as high land prices and government regulations prevent them from doing so, he said.
Despite the challenges in meeting the robust demand for homes, some cities in Utah are already rolling out projects to address the situation. In Salt Lake City, local officials plan to provide affordable housing in the next five years through the Growing SLC initiative.
The program aims to help people acquire homes by creating a funding source among other goals. Salt Lake City Mayor Jackie Biskupski hopes that Growing SLC will finally relieve locals from the burden of paying rents.
While buying homes in Utah seems to be a tough ordeal, for now, there are some ways to beat the competition. Try to secure funding ahead of time, so you could immediately close a deal in case you find a house that suits your taste.