Home prices in Utah continue to increase partly due to lack of enough home construction, which can indirectly affect the state’s economy.
Homeowners should not be eager to think that rising home values will bring any benefit, especially as salary growth in the states increases at a slower rate. The situation in California can be a good example, where businesses have packed up and relocated elsewhere due to rising costs.
Those planning to buy their own house should consider applying for home loans. Utah has promising home loan arrangements, which can help in facilitating transactions. Still, the state government should address the continual spike in prices by building more homes. If the current supply meets the burgeoning demand, home prices may return to affordable rates.
First-time buyers could also find it easier to buy homes if these are located in areas close to work. By building new houses in developed communities, people will no longer require traveling long distances. Hence, traffic jams and air pollution will somehow be reduced at the same time.
It’s no surprise that renters in Utah are on the rise because of surging home prices. A shortage of houses, however, led to the development of a new solution in the form of “tiny home.” These properties span less than 500 square feet. Builders can construct these houses on the ground or wheels.
A typical house of this kind has a loft bedroom, bathroom, kitchen and a common area. However, most local governments in Utah prohibit this type of home, due to issues on zoning, city ordinances and other regulatory restrictions.
A lack of housing supply primarily causes an increase in prices in Utah or any other state. If local governments encourage builders to develop more homes, it will benefit not people looking for affordable houses, but also the broader economy.