Affordable Housing
Home prices in Utah are the 7th highest in the nation. Between 1991 and 2023 housing prices in Utah increased 593%, the highest in the entire country. That’s great if you bought your home in 1990, but if you’re just entering the market, it can be challenging.
The cost of rent follows a similar trend; as home prices go up, so does rent; and interest rates are currently higher than they have been in 20 years.
There are several reasons for these increases:
Short supply.
High demand.
Large private capital firms buying housing (last year 23% of all housing units sold in Utah were purchased by investment firms – 44% nationally).
An unprecedented infusion of new money into the economy by the federal government.
More people working from home.
An exodus from the coasts.
Utah’s beauty and culture.
Our strong economy.
Utah’s a great place to live!
Home ownership is about more than just a place to live. It’s the most significant financial driver of a strong middle class, and it’s the middle class that ensures democracy.
I like the ideas put forth by Robert F. Kennedy, Jr, candidate for President in this year’s election. He proposes to create a government mortgage guarantee program that will provide first-time buyers (not corporations or hedge funds) 3% mortgage financing. His idea is a free-market solution that won’t require the federal government to print more money and it won’t create a ‘too big to fail’ situation that will need to be bailed out at some future date.
There are solutions that the federal government can facilitate.
Is there anything we can do without the federal government’s help? Is there anything we can do in the 4th District to help our neighbors buy a home?
I think there is. One idea is to create partnerships between for-profit and charitable organizations, allowing both to contribute to the production of high-quality housing that can be sold for less than what would be required if the program was entirely for-profit.
Individual home ownership is one of the pillars of our economy and our society; it impacts family stability, social support, and culture. Let’s keep home ownership available for future generations.
Watch a discussion on Affordable Housing recently hosted by Vaughn.
