DAVE & DUJANOVIC

Demand is driving home prices in Utah through the roof

Aug 3, 2021, 4:40 PM

home prices utah...

A home under construction is offered for sale in Palatine, Illinois. (Photo by Scott Olson/Getty Images)

(Photo by Scott Olson/Getty Images)

SALT LAKE CITY — The supply of houses in Utah can’t keep pace with demand. And a realtor predicts that without more real estate to sell, home prices in Utah will continue to climb. 

New numbers show the median price of a single-family home in Salt Lake County rose to $530,000 in April, May and June. That’s nearly 29% higher than the same time a year ago, according to The Salt Lake Tribune. In June alone, that price was at $550,000, according to data released by the Salt Lake Board of Realtors.

A pro gives his take

Real estate agent Thomas Wright said it’s a matter of too little supply and too much demand. He shared his professional insights with KSL Newsradio hosts Dave & Dujanovic.

The pandemic slowed the supply chain of new houses everywhere. “That made materials really hard to get and obviously slowed down construction as people weren’t working as much,” Wright said.

More people are moving into Utah, and fewer people are selling their homes and moving out.

More homes need to be built and sold

“We’re not building fast enough, we don’t have enough inventory, so we absolutely have a supply and demand problem,” Wright said.

He added that before the pandemic, Utah was about 55,000 housing units short of meeting demand. Right now about 30,000 homes a year are built.

“Even if we build 30,000 [homes], according to a new report that’s out, for the next 10 years at the current demand levels, we would not catch up,” Wright said. “We would we would still have a supply problem.”

He said there are three types of buyers competing for homes right now: everyday homebuyers, institutional investors who are paying cash, buying homes and renting them, and the 1031 exchange buyers who move profit from real estate transactions into a new realty purchase. That way, they don’t have to pay a capital gains tax.

Wright predicted that with interest rates staying so low, prices for homes will likely just keep rising.

Listen to Dave and Dujanovic’s podcast segment with real estate agent Thomas Wright, below.

Dave & Dujanovic can be heard on weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, a.s well as Apple Podcasts and Google Play.  

Related reading:

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Dave & Dujanovic

Michael Bacon and Kevin Bacon (Bacon Brothers Band) during rehearsals for Mother Nature Netwok's Wh...

Curt Gresseth

After 40 years, Payson High bringing home Bacon

Kevin Bacon returns Saturday to Payson High School for the 40th anniversary of the movie Footloose.

2 days ago

Students participate in the groundbreaking ceremony for the new West Lake Jr. High building in 2022...

Kyle Remund

West Lake Jr. High rebuilds after 2020 earthquake

After being severely damaged in 2020, West Lake Jr. High is being rebuilt with earthquake safety in mind. KSL's Dave and Dujanovic interviewed Ben Horsley of Granite School District about how the new building is being brought up to seismic code and how the district is preparing for future emergencies.

2 days ago

FILE: Caution tape surrounds the VFW building on Magna’s Main Street on Tuesday, March 24, 2020, ...

Curt Gresseth

How an earthquake impacts homes and buildings 

A structural engineer discusses how an earthquake rattles homes and buildings.

3 days ago

buildings are destroyed following an earthquake...

Curt Gresseth

Great Utah Shakeout: How to make your home earthquake-safe

An adviser discusses how to make your home safe for the Great Utah Shakeout.

5 days ago

An old, white house sits in front of a blue sky....

Tammy Kikuchi

Instances of squatting in Utah are rare, but they happen

While Utahns have many legal protections to fight against squatters, it can still happen. Here's what to do, if it does.

6 days ago

bald eagle...

Curt Gresseth

Who shot, killed bald eagle near Cedar City? $10,000 reward available

A $10,000 reward is available for information leading to the conviction of the perpetrator who shot and killed a protected bald eagle near Cedar City.

9 days ago

Sponsored Articles

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Demand is driving home prices in Utah through the roof