The US housing market gained a huge $2 trillion over the last year, amid a historic shortage of homes for sale.
The average home rose more than $20,000 and is now valued at $495,183 as of December 2023, up from $474,740 a year earlier.
According to Redfin analysis of more than 90 million homes across the country, the total value of US residential real estate increased 5.3 percent from a year earlier to $47.5 trillion in December.
While soaring mortgage rates mean housing demand is sluggish, home values continue to rise, pricing many Americans out of the market.
In the last two years, the housing market has gained $5.6 trillion, Redfin found.
However a disparity remains across the US. While affordable East Coast and Midwest metros saw the biggest rise in home values in the last year, so-called pandemic ‘boomtowns’ have seen the largest decline.
The average home rose more than $20,000 and is now valued at $495,183 as of December 2023. The biggest rises were on the east coast of America
Scroll down for the full list of metros with the biggest price rises.
According to Redfin, there are three major reasons why home values are continuing to rise.
Many homeowners are locked into ultra-low mortgage rates from previous years, meaning they are hesitant to put their houses on the market.
With supply tighter than demand, buyers are competing for a limited pool of homes. That is propping up values for both properties that are already for sale, and those that could hit the market in the future.
The total value of US homes was nearing a trough at the end of 2022, which is part of the reason year-over-year growth at the end of 2023 was so large, it added.
It is typical for home values to cool in the winter, but they experienced an abnormally large slowdown in 2022 as the shock of surging mortgage rates sent a freeze through the housing market.
While America grapples with a housing shortage, it is also continuing to build homes, which contributed to the gain in total home values last year, Redfin said.
Home values in Newark, New Jersey, saw the biggest gain in value in the year to December 2023 – increasing by 12.8 percent to $359.6 billion.
Next come two other East Coast metros, New Haven, Connecticut, and Camden, New Jersey. Homes in New Haven gained 11.9 percent in value to $86.5 billion, while properties in Camden went up by 10.8 percent to $153 billion.
Home values in Newark, New Jersey , saw the biggest gain in value in the year to December 2023 – increasing by 12.8 percent to $359.6 billion
Fixed 30-year mortgage rates are now hovering around 6.9 percent, according to Government-backed lender Freddie Mac
Charleston, South Carolina, ranked fourth – with values increasing by 10.8 percent to $188.5 billion.
Next are three Midwestern metros, Elgin, Illinois, Grand Rapids, Michigan and Milwaukee, Wisconsin.
Places like Newark and Camden are likely seeing home values jump in part because they are attracting demand from people who are priced out of New York and can now work remotely, Redfin said.
Midwestern metros like Milwaukee and Grand Rapids are experiencing home value gains for a similar reason.
They are affordable, and when mortgage rates and home prices are elevated, demand for affordable homes goes up.
‘America’s homeowners are sitting pretty. They’re holding a massive amount of housing wealth, despite lackluster demand from buyers, because home values skyrocketed during the pandemic and now a supply shortage is preventing those values from falling,’ said Redfin economics research lead Chen Zhao.
‘Prospective buyers aren’t as lucky. The combination of elevated mortgage rates, high home prices and a limited pool of homes for sale means homeownership is about as unaffordable as ever.’
But not every homeowner has seen their property increase in value.
‘Home values skyrocketed during the pandemic and now a supply shortage is preventing those values from falling,’ said Redfin economics research lead Chen Zhao
Four metros saw declines in overall home value, according to Redfin.
Pandemic ‘boomtown’ Boise, in Idaho, saw prices decline 3.8 percent to a total of $123.9 billion and New York saw prices fall 1 percent to $2.4 trillion.
New Orleans prices went down 0.8 percent to $124 billion and homes in Stockton, California, lost 0.7 percent in value – falling to a total of $109.2 billion in value.
The metros with the smallest increases were Philadelphia, at 0.3 percent, Honolulu, at 0.8 percent, Austin, Texas, at 1 percent, Denver at 1.3 percent and Riverside, California at 1.6 percent.
Most of these metros have something in common, said Redfin, which is that they have become unaffordable for many homebuyers. This means that there is a cap on demand, so home values no longer have much, if any, room to rise.
New York, Honolulu, Riverside and Denver all have median home sale prices of at least $550,000 – well above the national median.
And in Boise and Austin, which also have median sale prices above the national level, many people are priced out because an influx of out-of-towners caused home values to skyrocket during the pandemic.
But some experts predict that there will be a shift in the housing market in some parts of the US in 2024, driven by a surge in Baby Boomers downsizing into smaller properties.
Analyst Meredith Whitney, who is known as the ‘Oracle of Wall Street’ after she correctly predicted the 2008 financial crash, said house prices in some states will fall this year.
So-called pandemic ‘boomtown’ Boise, Idaho, saw prices decline 3.8 percent to a total of $123.9 billion in December 2023 – the most of any metro
Analyst Meredith Whitney, who is known as the ‘Oracle of Wall Street’, said house prices in some states will fall this year
This, in turn, will free up inventory and bring costs down for first-time buyers.
Whitney said homes in New York, New Jersey and Ohio will see a fall in prices. By comparison, homes in Texas, Tennessee and Utah will remain strong, she said.
She told DailyMail.com: ‘Around 90 percent of housing stock is owned by over 40s while 74 percent is by those over 50.
‘It makes logical sense that lots of these owners will start to downsize in the next decade. That’s almost 35 million homes – it’s a huge number to go through the system.
‘My advice to homeowners is: if you want to sell, you’re better off doing it sooner than later.’
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Utah’s luxury real estate market is a testament to the state’s natural beauty and thriving urban centers. From the stunning ski-in, ski-out properties in Park City to the elegant estates nestled in the picturesque landscapes of Salt Lake City, Utah offers a diverse range of high-end residential properties. With its breathtaking mountain views, vibrant cultural scene, and a strong sense of community, Utah’s luxury real estate market is a true reflection of the state’s unique charm and allure.
In this Redfin article, we’ll unveil 5 of the most expensive homes for sale by Redfin, offering a glimpse into the epitome of luxury living in the Beehive State.
1. Luxurious Bluffdale estate
1890 W Rock Hollow Rd S, Bluffdale, UT 84065
Listed by Sam Brinton
Priced at $5,500,000
This remarkable villa features professionally designed double pickleball courts, solar panels, radiant heating, zoned air conditioning and heating, water and irrigation rights, animal privileges, mature orchard, vineyard, indoor and outdoor bird aviaries, a 17-foot swim spa, patios, ample parking for RVs or boats, and a thoughtfully designed floor plan with natural light.
The main floor includes an office and bedrooms, totaling eleven bedrooms and seven bathrooms, two living and dining rooms, three laundry areas, two kitchens, a basement for storage, a three-car garage, an outdoor barn, two entrances for multigenerational living or income-generating opportunities. The massive acreage backyard offers limitless possibilities, from adding more pickleball courts to creating equestrian horse corrals.
2. One-of-a-kind Foothill estate
4601 N Foothill Dr, Provo, UT 84604
Listed by Sam Brinton
Priced at $2,600,000
Nestled in the Hillside Oaks community, this home offers a private, natural paradise designed for high-level entertaining. The grand entrance features marble columns, vaulted ceilings, and decorative chandeliers. The family room boasts thirty-foot ceilings, hardwood floors, elegant wood beams, a stone fireplace, and built-in bookshelves. The luxurious kitchen features new marble countertops, a stone farmhouse sink, Viking appliances, and a walk-in pantry.
The master suite is fit for royalty with a spacious sitting room, a 12-foot gas fireplace, and a palatial walk-in closet with custom cabinetry. The master bathroom includes a centerpiece bubble bathtub, a steam shower, and heated tile floors. Upstairs, an expansive theater room with vaulted ceilings, a stage, custom woodwork, and a kitchenette awaits. Enjoy the refined stone patio with a built-in Viking grill and stunning 180-degree views. The private backyard features a lush forest and a flowing waterfall, attracting wildlife.
3. Stunning Tuscan-style custom home
4821 N Vialetto Way, Lehi, UT 84043
Listed by Sam Brinton
Priced at $1,649,900
Enjoy breathtaking views of the valley from the main floor, featuring a large owner’s suite with an adjoining bathroom and extra-large walk-in closet. The family room is a masterpiece with vaulted ceilings, abundant natural daylight, a beautiful gas fireplace, custom-built cabinets, and two private decks overlooking the valley. Experience the luxury of a gourmet chef’s kitchen with Thermador stainless steel appliances, quartz countertops, and a spacious butler’s pantry. Additional highlights on the main floor include a spacious laundry room and guest bathroom. Your guests will love the private casita with a large bedroom and spacious bathroom.
Upstairs, discover two large bedrooms and a full bathroom. The large basement, with 9ft ceilings, offers two bedrooms, 1.5 baths, a daylight walkout, full kitchen, custom theater room, game room, exercise room, and a second laundry room. The home boasts a spacious four-car garage and an extra-large concrete RV pad.
4. Beautiful new modern farmhouse
306 N Santa Fe Dr, Mapleton, UT 84664
Listed by Sam Brinton
Priced at $1,700,000
The home welcomes you with a specially designed wood and glass front door, leading into an open concept layout with vaulted ceilings, white oak luxury vinyl flooring, custom tile and stone work, and large windows that fill the home with natural light. The main-floor gourmet kitchen boasts a massive quartz island, floor-to-ceiling custom cabinetry, an oversized walk-in butler’s pantry with a Costco grocery door, and high-end Cafe appliances. A huge sliding door from the kitchen opens to an oversized deck, offering views of the Mapleton sunrise and unobstructed mountain scenery.
The main-floor master bedroom suite features vaulted ceilings, custom lighting, and massive windows with stunning views. The master bath includes a soaker tub, separate tiled shower, walk-in closet, and a large dressing area with quartz countertops. Upstairs, a spacious area includes a sitting area, full bathroom, and two additional rooms, one styled as a cozy study nook with backyard views, and the other as an airy home office with neighborhood and mountain views.
5. Exceptional Avenues home
587 E 1st Ave, Salt Lake City, UT 84103
Listed by Dean Cotter
Priced at $1,399,950
This 1909 residence has been meticulously preserved, showcasing a harmonious blend of historic charm and contemporary functionality. The home features grand living spaces adorned with original walnut, pine, and oak woodwork, beautiful hardwood floors, fireplaces, 9 ft ceilings, and stained-glass windows. The expansive floor plan encompasses 5 bedrooms, 4 baths, walk-in closets, a modern updated kitchen, and a spacious master suite with a walk-in closet.
Ideal for summer evenings, the home offers a spacious front porch and an upper deck, providing an excellent vantage point for people-watching in this walkable neighborhood. Located in the lower Avenues Historic district, the property contributes to the neighborhood’s rich history and showcases important period architecture.
Thinking about buying or selling a luxury home in Utah?
Whether you’re in search of an upscale property in the Beehive State, exploring the featured listings mentioned earlier, or considering the sale of your high-end residence, a Redfin Premier agent can guide you through the entire process. With extensive real estate knowledge and a deep understanding of the local market, your Premier agent becomes an essential collaborator in ensuring the optimal deal as a buyer or maximizing your returns as a seller of luxury real estate in Utah.
- Meredith Whitney accurately predicted the 2008 financial crisis
- Now she claims US housing market is in the midst of a major shift
- It marks a reversal of the pandemic-inspired housing boom
America’s real estate landscape is in the midst of a major upheaval that will make homes more affordable to first-time buyers, claims a former Oppenheimer analyst.
Meredith Whitney earnt the nickname the ‘Oracle of Wall Street’ after accurately predicting the 2008 financial crisis.
Now she claims house prices are on the brink of decline after the pandemic inspired a real estate boom that saw the average property shoot up over $100,000 in value in less than four years.
However, she said the trend will be geo-specific with the likes of New York, New Jersey and Ohio worst-affected. By comparison, homes in Texas, Tennessee and Utah are among the states set to remain strong.
The shift will be driven by a surge in Baby Boomers downsizing into smaller properties – freeing up inventory and bringing costs down for first-time buyers, Whitney said.
Meredith Whitney, pictured, earnt the nickname the ‘Oracle of Wall Street’ after accurately predicting the 2008 financial crisis
In the year to November 2023, property prices in Detroit increased 8.2 percent, according to latest data from the leading measure of US house prices
A recent report by CoreLogic shows how property prices have shot up in certain US metros
She told DailyMail.com: ‘Around 90 percent of housing stock is owned by over 40s while 74 percent is by those over 50.
‘It makes logical sense that lots of these owners will start to downsize in the next decade. That’s almost 35 million homes – it’s a huge number to go through the system.
‘My advice to homeowners is: if you want to sell, you’re better off doing it sooner than later.’
During the pandemic the median US house price ballooned from $303,465 in March 2020 to $402,045 by December 2023, Redfin figures show.
Many families were embroiled in a so-called ‘race for space’ as they looked for bigger homes and gardens to spend lockdown. A widespread shift to working-from-home also unchained workers from their city center properties.
But house prices have remained elevated ever since – despite mortgage rates soaring in response to the Federal Reserve’s funds rate reaching a 22-year high.
The average rate on a 30-year mortgage is currently hovering at 6.77 – around double what they were two years ago, figures from Government-backed lender Freddie Mac show.
In a normal market this would be enough to dampen demand for homes and thus quash prices. However, several experts have noted that a widespread property shortage in the US has kept home values artificially high.
Whitney told DailyMail.com: ‘My advice to homeowners is: if you want to sell, you’re better off doing it sooner than later’
The average rate on a 30-year fixed home loan reached 6.77 percent, up from 6.64 percent last week, according to figures from Government-backed lender Freddie Mac
Data from Redfin shows that the typical US homeowner now spends twice as long in their properties as they did in 2005.
Today an owner can expect to spend 11.9 years in the same property, compared to 6.5 years two decades ago.
Whitney insists that there will be no house price ‘crash’ but rather an overdue correction.
She notes that in the last decade homeowners have built up $21 trillion in equity in their homes – so any price falls is unlikely to seriously harm them.
And some markets will fare much better than others.
She said: ‘Every 60 years we see a similar kind of seismic shift in the US economy from an economic standpoint.
‘Today we’re seeing businesses shift into those tax-friendly states across the Sunbelt and in Texas, Tennessee and North Carolina. These are the housing markets where growth will persist.
‘But New York, New Jersey, Ohio and Illinois will see an outmigration of population meaning there will be no growth in their housing markets.’
The Utah housing market is currently experiencing a shift towards a buyer’s market. The data reveals a decrease in closed sales both in the month of November and year-to-date. This suggests a higher inventory of homes available for buyers, providing them with more options and potentially giving them stronger negotiating power.
While the median sales price has seen a slight increase in November 2023 compared to the same month last year, the year-to-date data shows a decrease. The median sales price has dropped by 4.9%, indicating a potential decline in home values over the course of the year. However, it’s essential to consider other factors such as market demand, interest rates, and economic conditions influencing these price trends.
The current data does not suggest an imminent housing market crash. While there has been a decline in closed sales and a slight reduction in median sales prices, it’s important to monitor these trends over a more extended period. External factors like economic stability, interest rates, and job markets can significantly impact the housing market’s overall health.
How is the Utah housing market doing currently?
Here is the data for November provided by the Utah Association of REALTORS®.
November 2022 vs. November 2023:
- Closed Sales: 2,708 vs. 2,588 (-4.4%)
- Median Sales Price: $484,900 vs. $490,000 (+1.1%)
Year-to-Date 2022 vs. Year-to-Date 2023:
- Closed Sales: 42,218 vs. 35,792 (-15.2%)
- Median Sales Price: $510,000 vs. $485,000 (-4.9%)
Considering the shift towards a buyer’s market and a slight decrease in median sales prices, now could be a favorable time for buyers to enter the Utah housing market. The increased inventory provides more choices, and the relatively lower median sales prices may present opportunities for those looking to make a purchase. However, individuals should conduct thorough research, assess personal financial situations, and stay informed about market developments before making any decisions.
Utah Real Estate Market Report by UtahRealEstate
Here’s how the housing market performed, according to UtahRealEstate.com.
- In October 2023, around 2788 homes were sold on MLS, up 3.4% from last year.
- No. of single-family homes sold was 2060.
- No. of multi-family homes sold was 728.
- The median days on market were 34, up from 31 days last month.
- The median selling price was $540,000 for single-family homes, up 1.5% year-over-year.
- The median selling price was $410,000 for multi-family homes, up 1.2% year-over-year.
Utah Real Estate Market Trends for Q3 2023
According to the report by Windermere Real Estate Chief Economist Matthew Gardner, after a promising second quarter, year-over-year employment growth has experienced a slight setback. Utah added 39,000 jobs over the past 12 months, representing an annual growth rate of 2.3%. Notably, the Salt Lake City metro area led job growth with a rise of 2.7%, followed by Ogden and Provo metro areas with 2.4% and 1.7%, respectively.
Despite the positive job growth, Utah’s unemployment rate edged up to 2.5% in August, a 0.1% increase year over year. The county-level analysis reveals the lowest jobless rate in Morgan County (2.5%) and the highest in Weber County, where 3.1% of the workforce faced unemployment. Overall, the unemployment rate within the counties covered in this report averaged 3%.
Utah Home Sales
In the third quarter of 2023, 6,675 homes were sold in the analyzed areas, marking a 9.5% decrease compared to the same period in 2022. Although total sales volumes dropped, Wasatch, Summit, and Morgan counties experienced growth in both the third quarter of 2022 and the second quarter of this year.
Listing activity surged by 28.7% in comparison to the second quarter of 2023, indicating increased market choices. However, pending sales fell by 8.9%, suggesting potential lackluster closings in the fourth quarter.
Utah Home Prices
The average sale price in Utah grew by 4% from 2022 to $651,913. Regionally, median list prices remained flat in the third quarter compared to the second quarter of the year. However, Morgan County saw a significant price increase due to its smaller market size.
Price growth has been slowing, influenced by a substantial rise in mortgage rates. With the anticipation of limited price growth for the remainder of the year, market dynamics are impacted by both higher financing costs and increased market choices.
Mortgage Rates
Mortgage rates continued their upward trend in the third quarter of 2023, reaching levels not seen since the fall of 2000. Tied to the interest rate on 10-year treasuries, mortgage rates are influenced by economic factors. Despite a positive economy, mortgage rates are expected to remain elevated, with forecasts suggesting a potential downtrend in the spring of next year.
Utah Days on Market
The average time to sell a home in the analyzed counties increased by 17 days compared to the same period in 2022. Notably, Salt Lake County witnessed the fastest sales, while Wasatch County had the slowest. Despite the rise in market time, the third quarter saw a modest 3-day reduction compared to the second quarter of 2023.
Utah Housing Market Forecast for 2024
Zillow’s data indicates a slight decrease in the average home value over the past year. However, the market’s quick pace, with homes going pending in approximately 27 days, suggests continued demand. The sizable inventory of homes for sale (11,962) and a steady stream of new listings (3,088) offer a diverse range of options for potential buyers.
The median sale to list ratio of 0.995 suggests that homes are generally selling close to their list prices. This can be advantageous for both buyers and sellers as it indicates a balanced market where realistic pricing is key. The median sale price of $481,703 and median list price of $556,633 provide insights into the pricing dynamics within the market.
The percentages of sales over and under list price (26.1% and 53.0%, respectively) reflect a mixed landscape, indicating opportunities for negotiation and varying seller strategies.
The Utah housing market continues to exhibit dynamic trends, with Zillow reporting key statistics for November 2023.
- Average Home Value: $502,647
- Yearly Change: -1.2%
- Days to Pending: 27 days
Inventory and Listings
- For Sale Inventory (November 30, 2023): 11,962
- New Listings (November 30, 2023): 3,088
Sale and List Prices
- Median Sale to List Ratio (October 31, 2023): 0.995
- Median Sale Price (October 31, 2023): $481,703
- Median List Price (November 30, 2023): $556,633
Market Dynamics
- Percent of Sales Over List Price (October 31, 2023): 26.1%
- Percent of Sales Under List Price (October 31, 2023): 53.0%
Utah Areas Projected for Home Price Growth in 2024
According to the data on areas within Utah, there are distinct expectations for home price movements in 2024. The regions of Vernal, Price, Heber, Logan, and Ogden show varying trends in their anticipated home price changes.
Vernal, UT
In Vernal, Utah, a metropolitan statistical area (MSA), the housing market is poised for substantial growth. Based on data analysis, the median home prices are expected to experience a steady rise, projecting an increase from 0.9% on 29th February 2024 to an impressive 3.4% by 30th November 2024. This positive trajectory indicates a robust and flourishing real estate market in Vernal.
Price, UT
Similarly, Price, Utah, another MSA in the state, is anticipated to witness a notable surge in home prices throughout 2024. Despite a marginal decrease of -0.1% on 31st December 2023, the market is projected to rebound, showing a substantial increase of 2.9% by the end of November 2024. This resurgence signifies a resilient housing market in Price.
Heber, UT
Heber, Utah, is also on the radar for potential home price growth in 2024. While there might be a slight decline of -0.5% on 29th February 2024, the market is expected to recover, with a projected increase of 2% by 30th November 2024. This indicates a positive outlook for homeowners and investors in Heber.
Logan, UT
Lastly, Logan, Utah, is another region showcasing favorable prospects in the real estate landscape. Despite a minor dip of -0.5% on 29th February 2024, the market is forecasted to rebound, with an expected rise of 1.7% by 30th November 2024. Logan’s real estate market appears resilient, offering potential opportunities for those involved in property transactions.
Ogden, UT
In Ogden, Utah, part of the metropolitan statistical areas (MSA) in the state, the real estate market exhibits resilience and potential for growth in 2024. The data suggests a modest increase of 0.2% on 31st December 2023, followed by a slight decrease of -0.1% on 29th February 2024. However, the market is expected to bounce back, projecting a notable increase of 1.3% by 30th November 2024. This indicates a steady and positive trajectory for the housing market in Ogden.
Provo, UT
Provo, Utah, is another MSA where real estate is anticipated to experience positive trends in 2024. With a steady increase of 0.2% on 31st December 2023 and a marginal growth of 0.1% on 29th February 2024, the market is expected to maintain its upward momentum, projecting an overall rise of 0.8% by 30th November 2024. Provo’s housing market demonstrates stability and potential for appreciation.
Cedar City, UT
Cedar City, Utah, is also included in the areas where home prices are expected to rise in 2024. Despite a slight decline of -0.1% on 31st December 2023 and a more substantial decrease of -0.5% on 29th February 2024, the market is projected to recover, showing a notable increase of 0.8% by 30th November 2024. This suggests a resilient real estate market in Cedar City.
Salt Lake City, UT
Salt Lake City, a major metropolitan area in Utah, is poised for a moderate increase in home prices in 2024. While the market experiences a stability with no change on 31st December 2023 and a slight decrease of -0.4% on 29th February 2024, it is expected to rebound, projecting a modest increase of 0.3% by 30th November 2024. Salt Lake City’s real estate market remains a promising arena for potential appreciation.
St. George, UT
St. George, Utah, is a region where the real estate market is expected to recover from a decline in 2024. Despite a decrease of -0.3% on 31st December 2023 and a more significant drop of -1.2% on 29th February 2024, the market is projected to stabilize, showing a slight increase of 0.1% by 30th November 2024. St. George’s housing market demonstrates resilience and potential for a rebound.
Are Home Prices Dropping in Utah?
The overall data indicates mixed trends, with some areas anticipating price increases and others expecting declines. While Vernal, Ogden, and Provo show positive forecasts, regions like St. George and Cedar City project slight decreases. This dynamic suggests that while certain areas may experience price drops, the market as a whole is characterized by a level of volatility and heterogeneity in price movements.
The forecasted price changes do not necessarily imply an imminent housing market crash. Instead, the variations in projections across different regions highlight the complexity and localized nature of the real estate market. It is essential to consider additional factors, such as economic stability and national trends, to make a comprehensive assessment of the market’s health and potential risks.
Why Are Home Prices So High in Utah?
Utah boasts the nation’s strongest pace of job growth, along with rock-bottom unemployment, ultra-low mortgage rates, few mortgage delinquencies, and low state and local taxes. All those factors pushed Utah into first place in Bankrate’s Housing Heat Index for the fourth quarter of 2020. Utah’s home values increased by 15.39% in the 12-month period that ended Dec. 31, third-best among U.S. states, according to the Federal Housing Finance Agency.
Since 1991 Q1, HPI for Utah has increased by 414.95%. Idaho ranked #1 in FHFA State House Price Indexes. The HPI is a broad measure of the movement of single-family house prices. It is measured by reviewing mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac. According to a Bankrate analysis of Labor Department data, Utah also posted the second-strongest job growth in the nation from December 2019 to December 2020.
Even if inventory is significantly higher than it has been in the previous two years, it still does not address what has been a problem in Utah for years. There are still not enough houses. Even though homebuilding soared in Utah in 2021, putting the state on the national map for its housing boom. It made a decent dent in Utah’s housing shortage, but not enough to erase it.
Rapid population growth and job growth are the two most important drivers of housing demand in Utah right now. According to local real estate agents, there aren’t enough single-family homes to meet the rising housing demand. A balanced market has roughly a six-month supply of houses, which means that if we stopped listing new properties, we’d still have about six months before we ran out. And right now, Utah is down to about four weeks of supply of homes.
As a result, finding a dream house in this market is challenging for buyers, making it extremely competitive. Utah’s employment landscape is also one of the most impressive in the country. It has had the most rapidly growing job market in the country for the past decade. Utah’s population grew by 18.4% over the past decade, making it the fastest-growing state. It’s now the 30th most populated state, with nearly 3.28 million people, according to U.S. Census Bureau data.
A large number of Californians are relocating to Utah, putting extra pressure on the supply side. In-migration to the Salt Lake metropolitan area is still at an all-time high. The issue is that demand is so strong that inventory can’t reach a level that indicates a sufficient supply. People are also coming from New York, Boston, Vermont, Austin, Texas, and other cities, according to local real estate agents. They also think that people who are first-time homebuyers in Utah will be priced out of the market by people moving in from other states.
References:
- https://utahrealtors.com/
- https://www.zillow.com/home-values/55/ut/
- https://www.fhfa.gov/DataTools/Tools/Pages/House-Price-Index-(HPI).aspx