Salt Lake City's Zoning Changes Set to Transform Home Buying Options

The Utah housing market stands at a historic crossroads. As home prices continue to surge past the half-million dollar mark and thousands of new residents pour into the Beehive State each month, Salt Lake City is taking bold action. Revolutionary zoning changes to RMF-35 and RMF-45 zones—the most significant modifications in nearly a century—are poised to reshape how Utah families buy, build, and invest in homes. For current homeowners, prospective buyers, and real estate investors alike, these changes could unlock unprecedented opportunities in one of America's most competitive markets.

Salt Lake City Pushes Forward with Game-Changing Zoning Updates

Salt Lake City, Utah's vibrant capital and economic hub, is taking decisive steps to address the growing housing challenges faced by residents across the Wasatch Front. The Salt Lake City Planning Commission recently voted unanimously to recommend zoning changes that could revolutionize the Utah housing market trends we've seen developing over the past several years.

These changes, initially proposed by Salt Lake City Mayor Erin Mendenhall, specifically target the city's RMF-35 and RMF-45 zones (Residential Multi-Family zones). Unlike typical rezoning that merely adjusts boundaries, these modifications aim to remove barriers to development and enable more compatible infill housing within these moderate-density neighborhoods.

Understanding the RMF Zoning Changes

If you're considering buying a home in Utah, particularly in Salt Lake City, it's crucial to understand exactly what these RMF (Residential Multi-Family) zoning changes entail and how they could impact your options:

RMF-35 Zone Changes Explained:

• Height Allowances: Urban houses, two-family dwellings, and row houses can now reach up to 35 feet in height, allowing for more spacious multi-level homes
• Cottage Development: Cottage courts will be capped at 23 feet, creating opportunities for charming, community-oriented housing clusters
• Multifamily Options: Apartment buildings and condominiums in these zones can reach 35 feet, enabling 3-4 story developments
• Reduced Setback Requirements: Properties will require less unused space between buildings and property lines, maximizing usable land
• Density Increases: These areas will allow more units per lot size than previously permitted

RMF-45 Zone Changes Explained:

• Greater Vertical Development: In these zones, multifamily buildings can reach 45 feet, enabling true mid-rise development
• Mixed-Use Potential: These zones will accommodate ground-floor commercial spaces with residential units above
• Transit-Oriented Focus: Many RMF-45 zones are strategically located near public transportation corridors
• Streamlined Approval Process: Development in these zones will face fewer regulatory hurdles
• Incentives for Affordability: Developers can gain additional height allowances by including affordable units

Where These Zones Are Located:

• Lower Avenues: Historic neighborhood with tree-lined streets and proximity to downtown Salt Lake City
• Capitol Hill: Offering stunning views of the city and convenient access to government offices
• Central City: Urban core area with excellent walkability scores and amenities
• Select Areas: Portions of Sugar House, Ballpark, and other established neighborhoods

City planners indicate these changes would help spur "more housing in general," but the real impact goes deeper. For Utah homebuyers, these zoning modifications translate to more diverse housing options at potentially more attainable price points in some of Salt Lake City's most desirable neighborhoods.

The Timing is Critical for Utah Home Buyers and Sellers

The timing of these zoning changes couldn't be more crucial. According to recent Census Bureau data, Salt Lake City became Utah's fastest-growing city in 2024, adding nearly 6,000 new residents in a single year. This population surge has intensified the housing shortage across the Wasatch Front, driving up costs throughout the Salt Lake City homes market to unprecedented levels.

With the average Utah home value now approaching $550,000 and having doubled since 2017, these zoning changes represent a critical intervention in what has become one of the nation's most challenging housing markets for first-time buyers and growing families.

Why These Housing Type Amendments Matter for the Broader Utah Real Estate Market

The amendments to permitted housing types represent part of a larger transformation across Utah's housing landscape. As Nick Norris, Salt Lake City's planning director, explains, the city once allowed "all kinds of housing types" in the 1920s, but those options were gradually restricted over the next century as codes changed to reduce heights and density.

"Part of this is going back to what helped create a mix of housing types back when we had housing abundance in the city and there was more supply than demand," Norris noted.

These amendments aren't just about creating more housing—they're about creating the right types of housing to meet Utah's evolving demographic needs:

Meeting Diverse Household Needs

• Young Professionals: Compact urban houses and row houses near employment centers
• Young Families: Duplex options that offer more space than apartments at lower price points than detached homes
• Empty Nesters: Cottage courts and townhomes that provide community without maintenance burdens
• Multi-Generational Families: New urban house designs with flexible floor plans and potential accessory dwelling units
• Essential Workers: Multi-family developments with improved affordability near transit

Creating Economic Opportunities

For investors and developers in the Utah housing market, these amendments create substantial new opportunities:

• Small-Scale Development: The cottage court and row house amendments make smaller-scale development projects more financially viable
• Property Value Impacts: Existing properties in these zones may see value increases due to expanded development potential
• Renovation Potential: Current structures can be converted to the newly permitted housing types
• Transit-Adjacent Premium: Properties near UTA routes will become particularly valuable for multi-family development

Salt Lake City isn't alone in this approach. Cities nationwide are amending housing type regulations to address housing shortages, with promising results. For example, when Minneapolis enacted similar changes, its housing output tripled compared to the rest of Minnesota.

Mixed Reactions: How Utah Residents View the Housing Type Amendments

Despite the potential benefits, reactions from Utah residents have been mixed regarding these housing type amendments:

Supporters Highlights:

• Affordability Crisis Solution: Groups like Salt Lake County Neighbors for More Neighborhoods called the amendments a "powerful step" toward a city where families, seniors, and essential workers "can afford to live near jobs, schools, and opportunity"
• School Enrollment Support: Proponents note that more diverse housing types could help reverse declining school enrollments in Salt Lake City neighborhoods
• Environmental Benefits: Higher density housing types require less infrastructure, reduce per-capita energy use, and can decrease commute distances
• Economic Development: Housing type diversity attracts employers by ensuring their workforce can find suitable housing option.

Concerns Include:

• Neighborhood Character: Some residents worry that introducing new housing types could alter the historic character of established neighborhoods
• Targeted Approach Needed: Ester Hunter, chairwoman of the East Central Community Council, called for a more "surgical" approach to housing type amendments rather than broad changes
• Parking Considerations: Resident Judi Short highlighted that diverse housing types require thoughtful parking solutions, particularly in areas with limited street parking
• Displacement Risks: Some community advocates worry that property value increases could displace long-term residents in affected neighborhoods

The Salt Lake City Planning Commission acknowledged these varied perspectives but ultimately voted unanimously to recommend the amendments, emphasizing that diverse housing types are critical to addressing the city's housing challenges.

What's Next for Utah's Housing Type Evolution

The Salt Lake City Council still needs to approve these zoning changes, with discussions likely beginning in July 2025. If approved, the changes would immediately enable new types of development without forcing existing residents to make any changes to their properties.

For those interested in Utah real estate, these developments create several important considerations:

For Utah Home Buyers:

• Expanded Entry Points: The zoning changes create more diverse price points into desirable neighborhoods
• Investment Strategy: Properties in RMF zones may represent strong long-term investments
• Neighborhood Transitions: Areas at the boundaries of RMF zones may see the most immediate transformation
• Pre-Approval Opportunity: Consider purchasing in affected zones before changes are finalized and potentially drive up values

For Utah Home Sellers:

• Development Potential: Properties in RMF-35 and RMF-45 zones may now appeal to a wider range of buyers, including developers
• Marketing Strategy: Highlighting the potential for redevelopment could increase property values
• Timing Considerations: The period immediately following zoning approval may represent an optimal selling window
• Renovation vs. Selling: Some homeowners may benefit from adapting their properties to new allowances rather than selling outright

For Utah Real Estate Investors:

• Targeted Acquisition: The zoning changes create clear targets for property acquisition in specific neighborhoods
• Development Roadmap: Understanding the new height and density allowances provides a blueprint for profitable development projects
• Conversion Opportunities: Existing structures in these zones can potentially be converted to more lucrative configurations
• Partnership Potential: Local builders with experience in multi-family development will be valuable partners

The Bigger Picture: Utah's Housing Future Beyond Salt Lake City

Salt Lake City's housing type amendments may be just the beginning of a statewide transformation in how Utah approaches residential development. Other key developments to watch include:

Statewide Housing Type Reform

Governor Spencer Cox has supported construction initiatives to combat rising housing costs and has expressed interest in expanding housing type diversity across Utah. State legislators are currently drafting bills that would encourage other municipalities to adopt similar amendments.

Market Impact Beyond Salt Lake City

The ripple effects of these housing type amendments will likely extend throughout Utah's real estate market:

• Provo and Utah County: Already facing severe housing shortages due to student and tech sector growth, Utah County municipalities are developing their own housing type amendments
• Ogden and Weber County: Northern Utah cities are exploring similar housing type diversification strategies, particularly around transit hubs
• Park City and Summit County: Even luxury markets are considering housing type amendments to address workforce housing challenges
• St. George and Washington County: Southern Utah's explosive growth is prompting similar conversations about housing diversity

Despite these promising developments, Utah's housing challenges remain significant. Zillow recently named Salt Lake City the 10th hottest market for 2025, despite average home values approaching $550,000. Statewide, housing values have doubled since 2017, while rents are up 38% during the same period.

"Even as there's a desire to buy homes, people are simply priced out because housing is just so scarce," explains Alex Horowitz, director of the Housing Policy Initiative for Pew Charitable Trusts. These housing type amendments represent Utah's most promising path toward addressing that scarcity.

Don't Just Watch Utah's Housing Evolution – Be Part of It

The transformation unfolding in Utah's housing landscape represents not just policy changes but a once-in-a-generation opportunity. While others hesitate, savvy homebuyers, sellers, and investors who act decisively now will secure their position in one of America's most resilient and promising real estate markets.

Salt Lake City's zoning revolution is just the beginning. As these changes ripple through Provo, Ogden, and beyond, the entire Wasatch Front stands on the cusp of a housing renaissance that will redefine community living, property values, and investment returns for decades to come.

The question isn't whether Utah's housing market will transform – it's whether you'll be positioned to benefit when it does.

Our elite team of Utah real estate strategists doesn't just understand these zoning changes – we've been anticipating them. We're already helping clients identify emerging opportunities in Salt Lake City, Provo, and high-growth corridors that others haven't yet recognized.