This is one of the first questions I get asked by both buyers and sellers. Rightfully so. Up until the pandemic, it did seem like there wasn't an issue with the housing inventory. Buyers were still able to find homes and with rates at a historical low, they could afford more. The inventory shortage seemed like it didn't exist. The truth is we have been in a housing crisis for years and it's been right under our nose.
The problem started over a decade ago during the great recession. Builders found themselves with loads of spec homes and suddenly no buyers. This caused many home builders to go out of business and created a ripple effect in the housing market. New construction came to almost a halt for several years meanwhile our population continued to grow. Once builders had regained their confidence in the market, they were now already behind the eight ball. It was all they could do to keep up with the demand. According to NAR the U.S. is 3 million homes short while Utah is currently needing 31,000 more homes to accommodate our growing population.
Now not only do we have a housing shortage, we have a housing crisis. Covid taught us that we can work remotely and with that brought the great migration. With the ability to work from home many people chose to move out of state in favor of more affordability and an improved quality of life. This migration has many blaming the "Californian's" or anyone else that relocated to Utah during Covid for the housing shortage. The real cause is our growing families. As Utahns, we are known for having many children. Now those children have reached adulthood and are seeking homes of their own. Unfortunately the housing crisis is hitting them the hardest. With rising costs and interest rates, homeownership is unaffordable for many of them.
Not only can builders not keep up with demand, many city councils are opposed to the idea of high density owner occupied residences. The kinds of homes that our now adult children are in the market for. City officials incorrectly think that high density homes will negatively effect the value of single family homes in the area. What an absurd idea! They are unknowingly denying the American Dream to the next generation. Utah's housing crisis will only begin to be fixed when city councils realize that by not allowing high density residences, they are denying their children and grandchildren the opportunity of homeownership and a wealth building asset.