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Utah is facing a significant housing shortage. Demand continues to outpace supply, escalating home prices and creating affordability challenges for its residents. Rapid population growth, a booming economy, and lagging construction efforts have intensified the shortage, leaving policymakers and residents searching for solutions.
According to the Kem C. Gardner Policy Institute, the state faces a housing deficit of approximately 44,000 units — equivalent to about 18 months of homebuilding. This shortage has been exacerbated by construction delays caused by pandemic-related supply chain disruptions and a surge of out-of-state remote workers willing to pay premium prices for Utah real estate.
Data from the Utah Association of Realtors reveals the depth of the problem: between 2018 and 2024, the median home price in Utah skyrocketed from $305,000 to $535,000, far outpacing wage growth. As a result, homeownership has become increasingly unattainable for many Utahns.
A 2024 survey conducted by the Utah Foundation found that fewer than 12% of homes sold in the state in 2022 were affordable for individuals earning the median income. This affordability gap disproportionately affects younger generations seniors, and essential workers like teachers and first responders (Utah Association of Realtors and Utah Foundation).
"Residents point to housing as their greatest worry about life in Utah. Most Utahns realize this is one problem we can build our way out of–they just want us to do it in a well-planned way that doesn't threaten other aspects of our quality of life," said Ari Bruenning, president and CEO of Envision Utah
Roots of the shortage
Several factors have contributed to Utah's housing shortage. High land prices, labor shortages, and restrictive zoning regulations have constrained the construction of new homes, reports Kem C. Gardner Policy Institute research. In urban centers along the Wasatch Front, developers face significant challenges in meeting the demand for housing while navigating local opposition to increased density. Meanwhile, rural areas are also experiencing deficits, with fewer resources and limited land availability further hampering construction efforts.
Shifting demographics compound the issue. Utah's population grew more than 18% in the past decade, driven by natural growth and an influx of new residents drawn to the state's robust economy and high quality of life, according to the Kem C. Gardner Policy Institute. This rapid growth placed additional pressure on an already strained housing market.
Public perception and policy solutions
Utahns are acutely aware of the housing challenges. Research conducted in 2024 found that more than two-thirds of residents view housing as a serious or even crisis-level issue, according to a Deseret News article. However, opinions on the best path forward vary. While a majority agree that increasing the housing supply is essential, there is significant skepticism about the effectiveness of current development practices.
Gov. Spencer Cox has set a goal to create 35,000 new starter homes by 2028. Proposed measures to address the shortage include zoning reforms to increase housing density and diversity, financial incentives for affordable housing developments, and public-private partnerships to accelerate construction timelines (Utah Geospatial Resource Center).
In addition to new developments, one innovative solution under discussion involves converting vacant or underutilized properties into affordable housing units. Efforts to streamline the approval process for new projects and reduce regulatory barriers are also gaining traction. However, implementing these changes requires balancing the need for more housing with community concerns about overdevelopment and infrastructure strain.
The path forward
Despite growing awareness and ambitious goals, addressing Utah's housing shortage will require coordinated efforts from policymakers, developers and residents. Advocates emphasize the need for long-term planning and sustainable practices to ensure the state remains an affordable and desirable place to live.
Steve Waldrip, the Senior Advisor For Housing Strategy to Cox, said, "To ensure that the American Dream stays alive and well in Utah, we must add housing choice to the market. That's why we agree with the Demand More Supply campaign because it is focused on raising awareness of the core problem of high home prices - not enough supply."
As Utah continues to attract new residents, the state must prioritize housing solutions that balance growth with quality of life. While the challenges are daunting, a unified approach could help bridge the gap between supply and demand, ensuring a brighter future for the Beehive State.
Utahns can make their voice heard by participating in the statewide survey at demandmoresupply.com.
