As we navigate Utah’s growth, housing affordability has become one of the most pressing issues. Over the past few years, home prices have skyrocketed and, as a result, many families in Utah are struggling to find affordable homes. As your representative, I am committed to striving toward making housing affordable for Utahns once again, while addressing the root causes of this housing crisis and preserving the values of free market principles and local community control.
The Issues Facing Our Community
The primary challenge we face is a housing supply shortage. As Utah continues to grow rapidly, especially with the influx of new residents drawn to the booming tech sector in Silicon Slopes, the demand for homes has far outstripped supply. Much of this demand comes from outside the state, with many skilled workers moving here for high-paying jobs. While this growth has helped fuel our economy, it has also contributed to the housing crunch, as local workers often find themselves unprepared or unqualified for many of these new jobs.
The Role of Investors in Utah’s Housing Market
Another major issue contributing to our housing shortage is the rise in investor purchases of homes, particularly for short-term rental properties such as Airbnb and VRBO. In 2023 alone, 30% of all homes sold in Utah were bought by investors. This is making it harder for Utah families to buy homes, as many of these properties are being converted into rental units rather than being owner-occupied.
While I firmly believe in the free market, it is important to recognize that the housing market is far from a true free market due to significant government intervention. Policies and incentives have shaped investor behavior, often encouraging large-scale purchases of residential properties for rentals. This can distort competition and reduce availability for potential homeowners.
When investors buy up large portions of the market, it drives up prices, limits supply, and creates barriers for individuals and families trying to enter homeownership. Proper checks and balances are crucial to ensure fair competition and access for everyone.
As an example, Farmington has introduced an innovative ordinance aimed at addressing housing affordability by expanding homeownership opportunities through the development of accessory dwelling units (ADUs).
Passed in July, the ordinance allows homeowners to subdivide and sell ADUs separately, giving families—particularly young and first-time homebuyers—a more affordable entry into the housing market. The ordinance also helps older residents stay in their neighborhoods by downsizing while retaining homeownership. A key feature of the ordinance requires the original property owner to live on the property for at least two years before selling or converting it into a rental, which discourages investor dominance and ensures that properties remain owner-occupied.
As a state representative, this ordinance offers valuable insights into alternative approaches to tackling housing affordability without resorting to high-density developments. Farmington’s program is particularly interesting because it explores how underutilized land can be converted into owner-occupied housing, allowing for multigenerational living arrangements and wealth building through equity.
By monitoring this pilot program’s success and identifying challenges, such as the long-term viability of owner-occupied ADUs or potential legal concerns over property control, we can evaluate whether similar policies might be feasible statewide. The program’s three-year timeline also provides an opportunity to assess its effectiveness in real-time, which could inform future housing policy discussions across Utah.
We, as a Legislature, are exploring every avenue to ensure that homeownership remains an attainable goal for Utah families. By balancing free market principles with thoughtful regulation, we can help ensure that everyone has a fair shot at owning a home.
Offering Incentives for Telecommuting and Developing Rural Utah
Another way we can ease the pressure on the housing market is by incentivizing telecommuting. With advances in technology and the rise of remote work, there is an opportunity to build out beyond the Wasatch Front and encourage development in rural areas of Utah. By expanding infrastructure and broadband access in these areas and offering incentives for companies to allow their employees to telecommute, we can encourage growth in rural communities while providing Utahns access to well-paying jobs without needing to live in the most densely populated areas of the state.
This approach would allow us to build more housing outside the valley and create new opportunities in rural Utah, bringing economic development to areas that have often been left behind. Telecommuting also offers the added benefit of reducing traffic congestion and pollution in the valley, improving the quality of life for all Utah residents.
Addressing the Wage Gap and Investing in Education
Part of the housing crisis is that wages have not kept pace with rising housing costs. Many Utah families are struggling to make ends meet because while home prices have surged, wages have remained relatively stagnant. To address this, we need to focus on creating more economic opportunities that promote wage growth and implementing policies to slow housing inflation. This will give wages a chance to catch up, helping Utahns achieve financial stability and access to affordable housing. By fostering a balanced approach between economic growth and housing affordability, we can ensure that more families thrive in our state.
Investing in education is a key part of the solution. By improving our education system and providing more pathways to well-paying jobs—including those in the trades and tech sectors—we can ensure local residents have the economic opportunities needed to afford housing.
Educating people on the value of careers in both the trades, tech, and other industries will help diversify and strengthen our workforce. Coupling this with efforts to address the housing supply and demand imbalance will be essential in making Utah more affordable for everyone.
Preparing Utah’s Workforce for Silicon Slopes Jobs
Another significant factor driving housing demand is the influx of highly paid tech workers from outside Utah. While this has helped fuel our economy, it also highlights a gap in our education system. Many Utah students are not being adequately prepared for the jobs of the future, particularly those in the tech sector. Additionally, there is a growing shortage of skilled trades workers, which will only increase as Utah prepares to host the Olympics in 2034. The demand for skilled labor in construction and infrastructure will skyrocket, and it would be far better to hire those workers locally rather than bringing them in from out of state.
To ensure that Utahns can access these well-paying jobs, we need to modernize our education system. This means investing in programs that teach the skills needed not only for tech jobs in Silicon Slopes but also for careers in the trades, where demand is rapidly growing. By doing so, we can reduce the need for out-of-state hires, help control population growth from outside the state, and provide local residents with the opportunities they need to succeed.
Our education system must prioritize not only traditional academic pathways but also vocational and technical training that can prepare students for a wide range of well-paying jobs in Utah’s growing industries. With the right education and skills, Utahns will be ready to fill these roles, which will in turn help address housing affordability by slowing the pace of migration into our state.
Other Possibilities
Gathering data on housing solutions in other states and being willing to research and pilot programs, as long as they are fiscally sound, are key steps the legislature can take to address Utah's housing crisis. Collaborating with nonprofits and Community Land Trusts (CLTs), which have effectively preserved affordable housing elsewhere, is one avenue worth exploring.
Innovative funding mechanisms like bond financing or housing trust funds could also help spur affordable development. Streamlining zoning and land-use processes would further support the creation of multifamily and mixed-use housing. There are many potential avenues, and as your representative, I am committed to learning, researching, and hearing your thoughts and opinions so we can find creative, long-term solutions to housing issues.
What the Legislature Has Done for Housing
The Utah Legislature is taking steps to address the housing crisis. In the 2024 session, we passed a number of bills aimed at increasing the supply of affordable, owner-occupied homes. These bills are designed to give cities the tools they need to work with private developers to build more housing while balancing local control.
Some key legislation includes:
HB476: This bill clarifies state code and places requirements on cities to streamline the process for approving residential developments. This creates more certainty for home builders and speeds up the construction of new housing.
HB465: This bill allows redevelopment agencies to use funds for income-targeted, owner-occupied housing, rather than rentals, helping families access homes they can afford.
SB268: Cities can now create "First Home Investment Zones," which use future tax revenue from growth to help lower the cost of housing. At least 25% of these homes must be owner-occupied, and cities must include an affordable housing plan in their proposals.
SB168: This bill sets a statewide building code for modular homes, encouraging more affordable housing options, and allows cities to create zones where smaller lots and more homes per acre can be developed, provided that 60% of the homes remain affordable and owner-occupied.
HB572: The Utah Homes Investment Program, administered by the state treasurer, provides low-interest loans to developers building affordable housing. This is part of a three-year pilot program to help increase the supply of attainable homes, with a statewide price target of $350,000.
Each of these measures was carefully crafted to help create more housing while empowering cities and local communities to remain in control of how these new developments take shape. We are empowering cities to be part of the solution, while also ensuring that developers have the tools they need to build homes that meet the needs of Utahns.
Looking to the Future
While we have made significant strides, there is still more work to be done. By encouraging telecommuting, developing rural Utah, improving education, and addressing the wage gap, we can build a future where every Utahn has access to affordable housing and where our communities can thrive.
As we move forward, I want to ensure that any new solutions benefit all Utahns. I welcome your thoughts, concerns, and ideas as we continue to explore ways to make housing more affordable. Together, we can build a future where every Utahn has access to a home they can afford and where our communities thrive.
— Anthony Loubet
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