Townhomes are the New Starter Home

Utah has been rated the #1 economy in the US for over 15 years in a row, and that ranking continues as solid as ever. Business is booming here in the Beehive State and with that more people are relocating here. However, with growth comes challenges, and some local buyers have been slapped in the face with Utah’s popularity and thriving economy. 

Last year Utah County had a population growth of forty percent which is about ten percent more than the national average. The next closest county was Salt Lake with a twenty five percent growth. A large influx of people into Utah, especially in these counties, is creating a growing demand for housing. 

Between Utah and Salt Lake Counties, we are still 86,000 units short to break even with the estimated need in the next six years. 

Here are a few stats to put things in perspective: 

• Utah has moved to the #8 slot in “Most Expensive Median Home Sales Price” in recent years
• Only 1 in 10 renters can afford the median priced home. 
• Currently, it’s about 35% cheaper to rent than to own. 

Utah’s ebb and flow economy has brought change, but it isn’t all bad! There is still hope if you want to buy and/or sell real estate. 

Interest rates are coming down and are currently ranging from the high fives to a low six percent. All indicators suggest that rates will continue to decline to the five percent range, but with all of the unknowns in the economy, the change is happening slowly. 

There is a huge wave of next generation buyers entering the real estate market in future years, and the Utah legislature is planning and preparing for these new buyers by implementing measures to make housing more affordable. 

This will include more Multi-Unit Housing (Condos/Townhomes). This type of housing isn't going to go away, and you will see more and more of it. Townhomes are the new starter homes, so don’t be afraid of them.! 

If you are feeling stuck or overwhelmed, we hear you! It can be daunting for everyone, but we want to be a resource for you. There are grants and programs available and we can help you get on the path to home ownership regardless of your circumstances. 

If you are ready to make a plan or need some advice, reach out to your agent today!