Utah has long been one of the fastest-growing housing markets in the United States. But in 2025, that growth has collided with rising construction costs and a widening affordability gap.
According to the Realtor.com® State-by-State Housing Report Card, the Beehive State earned a disappointing “C” grade, reflecting severe challenges in keeping home prices and housing supply in balance.
Realtor.com’s “C” Grade Explained
Utah’s overall score of 51 placed it near the middle nationally for housing affordability. The median home listing price reached $602,230 in 2024, while the average household income climbed to $88,438. Despite solid wages, income growth has not kept pace with soaring property prices.
Although Utah represents 1.0% of the U.S. population, it contributed only 1.6% of national housing permits in 2024. This produced a permit-to-population ratio of 1.0, signaling that new construction isn’t sufficient to meet demand.
The new construction premium — the price difference between newly built and existing homes — hit 9.3%, underscoring how material and land costs have made new housing increasingly unaffordable.
Why Utah’s Housing Market Is Struggling
Economists point to a “perfect storm” of factors weighing on Utah’s housing system:
- Strong population and job growth fueling demand
- Limited land availability in high-demand areas like the Wasatch Front
- Escalating labor, material, and zoning costs
Even with consistent construction permitting, supply continues to trail population growth, pushing families further from urban centers and driving up prices statewide.
Trump Calls Out Builders Amid National Shortage
Former President Donald Trump recently turned national attention to the homebuilding slowdown. On his Truth Social platform in October, he accused large developers of hoarding land to manipulate prices, comparing their actions to OPEC’s oil-output restrictions.
“They’re my friends… but now they can get financing, and they have to start building homes. They’re sitting on 2 million empty lots — a record,” Trump wrote.
He also urged Fannie Mae and Freddie Mac to push large builders into action to “restore the American Dream” through expanded construction efforts.
The Western States Lag Behind
While many U.S. regions have seen new construction narrow the affordability gap, the Western housing market continues to lag.
Realtor.com’s New Construction Insights report showed:
- Median new-home price: $450,797
- Resale price growth: +2.4%
- National new-home premium: 7.8% (lowest ever recorded)
However, in the West, restrictive zoning laws, high development costs, and limited land have driven a decline in new-construction listings, even as total construction rises.
The Nationwide Housing Deficit
“America is short more than 4.7 million homes, and every new home built helps close that gap,” said Shannon McGahn, Executive Vice President at the National Association of Realtors® (NAR).
McGahn emphasized that expanding housing supply not only helps stabilize prices but also creates jobs, strengthens local economies, and allows families to build long-term wealth.
Utah’s Policy Push: Governor Cox’s Housing Plan
In his 2024 State of the State address, Governor Spencer Cox pledged to build 35,000 starter homes within four years. Since then, he has pursued legislative reforms to simplify zoning laws and streamline permits.
On October 30, 2025, Cox delivered the keynote speech at the Ivory Prize Summit at the University of Utah’s David Eccles School of Business.
Over 100 national housing experts attended to discuss the growing affordability crisis and possible policy interventions.
State vs. Local Control Debate
A key topic at the summit was whether state government should take a stronger role in resolving the housing shortage or continue to let local authorities dictate land-use policies.
Governor Cox argued that fewer restrictions could help address the crisis, pointing to Texas as a model where deregulation has encouraged rapid housing development.
He also previewed a “more aggressive strategy” for 2026, which could include:
- Statewide zoning preemption to allow smaller, affordable units
- Mandatory fast-track permitting near public transit
- Relaxed local housing ordinances to accelerate supply
Recent Reforms to Speed Up Building
Utah has already implemented limited statewide preemptions requiring cities to approve transit-oriented housing and streamline permit processes. These steps aim to reduce delays that often stall construction projects for months or even years.
If Cox’s future reforms move forward, Utah’s housing policy could become a national example of how state governments can balance local control with urgent affordability needs.
Utah’s “C” grade is a wake-up call for a state once seen as a housing success story. With strong demand, high prices, and limited new supply, Utah’s housing affordability crisis remains one of the most pressing challenges facing its government and residents.
If leaders like Governor Spencer Cox succeed in scaling up construction and easing regulations, the Beehive State may yet restore its reputation as one of America’s most livable regions.
