Utah Housing Affordability: Why a Federal Emergency Could Be a Game-Changer

Utah’s housing market has been running hot for years, with prices outpacing incomes and thousands of families struggling to buy or even rent. Now, the federal government may be stepping in. U.S. Treasury Secretary Scott Bessent recently suggested that President Donald Trump could declare a national housing emergency this fall—a move that hasn’t been tried since the 2008 financial crisis.

For Utah, one of the country’s most expensive housing markets, this kind of bold action could be the relief buyers, builders, and communities have been waiting for.

What Would a Housing Emergency Mean for Utah?

The details are still unfolding, but here’s what experts say a declaration could bring:

• Zoning and permitting reform: Utah cities like Salt Lake, Provo, and Ogden are bogged down by complex zoning codes that limit housing supply. Federal action to standardize or streamline these rules could open the door for more homes, faster.

• Lower construction costs: Building in Utah isn’t cheap—Park City projects can run $500+ per square foot. Tariff exemptions on lumber and steel, paired with simplified building codes, could cut costs for developers and buyers alike.

• Cheaper financing: Builders often pay 2–5% more in interest than consumers. Rate relief would help developers bring more projects to life, while lower mortgage rates would directly ease the pressure on Utah buyers.

In short, this isn’t just a Washington, D.C. story—it could reshape the very foundations of Utah’s housing market.

Utah’s Housing Crisis by the Numbers

The urgency is clear. According to recent reports:

• Utah is short 30,000–40,000 homes every year, leaving many buyers on the sidelines.

• Only 8% of non-homeowners in Utah can currently afford a median-priced home.

• Construction permits have dropped to their lowest level since 2016—just 22,000 new units statewide in 2024.

• Affordable rentals are vanishing. Between 2013 and 2023, Utah lost more than half of its apartments priced under $1,000 per month.

Even insurance costs are squeezing budgets: in the Salt Lake metro, homeowners are now spending nearly 7% of their monthly mortgage on insurance—up sharply from just a few years ago.

Will Affordability Bounce Back?

Not overnight. Economists warn that even with a housing emergency, affordability will take years to improve. Studies project that if home price growth remains modest and mortgage rates fall to around 5.5%, affordability could return to 2018 levels by the end of this decade.

That may sound far off, but for Utah families who’ve seen prices climb relentlessly, the possibility of real progress is reason for cautious optimism.

Utah Is Already Taking Action

While the federal government debates, Utah is moving forward with its own housing solutions.

• Governor Cox’s Affordable Housing Plan aims for 35,000 homes priced under $400,000 by 2028.

• The state has invested in down payment assistance programs, land development loans, and incentives for landlords who accept Section 8 vouchers.

• A $2 million public campaign called “Demand More Supply” is pushing zoning reform and highlighting the urgency of Utah’s housing shortage.

Local buyers are also getting creative. Strategies like house hacking—renting out part of a home to offset mortgage costs—are gaining traction among young Utahns eager to break into the market.

What This Means for You

For buyers: Relief may be on the horizon, but don’t wait to explore programs like Utah’s $20,000 first-time buyer assistance. Taking action now could position you to take advantage of future rate cuts.

For sellers: If affordability improves, demand could surge. That makes now a strong time to list—while prices are still high and competition among buyers remains steady.

For builders and developers: Stay engaged in policy discussions and watch for opportunities. Lower material costs, streamlined zoning, and better financing could make new projects more profitable.

Conclusion

Utah’s housing emergency isn’t just about numbers—it’s about families chasing the dream of homeownership in a market that feels out of reach. A federal declaration could be the catalyst that accelerates supply, reduces costs, and restores balance.

But real change will take both national policy shifts and local determination. Utah has already laid the groundwork—now the question is whether Washington will deliver the push needed to get housing affordability back on track.