Utah’s severe housing inventory shortage means homebuyers face competing offers well above the original asking price while searching for their dream homes. Utah Central Board of Realtors President, Aaron Drussel, explained to Daily Herald that buyers should expect to pay the purchase price or more in the current market. In some circumstances bids are coming in anywhere from $20,000 to $60,000 above the list price.
Although Utah is one of the fastest growing states in the nation, the real estate listings database shows that there are 15 percent fewer homes available in Utah County than last year. Nearby, Salt Lake City also suffers from a lack of available housing. According to data released by Trulia and compiled by the Associated Press, between 2012 and 2017 Salt Lake City experienced nearly 70 percent decline in available housing inventory. The shortage has caused desirable, reasonably priced homes to sell quickly and prices continue to rise.
Renters are feeling the effects of the housing shortage too. With only 3.5 percent vacancy rates and rising costs, finding an affordable rental unit also proves to be quite a challenge. As a result of Utah’s strong economy, there is a high demand for housing. As businesses and residents relocate to Utah building new housing is seen as one solution to the shortage. However, factors such as land costs, increased labor costs and regulations often inhibit new projects.