National homebuilders are trying ten new ways to lower home prices

SALT LAKE CITY – The National Association of Home Builders is trying a 10-point housing plan to combat rising home prices.

Ultimately, the points were designed to get housing supply to meet demand. The points can be applied at local, state, and federal levels. 

Specifically, the points are:

• Eliminate excessive regulations
• Promote careers in the skilled trades
• Fix building material supply chains and ease costs
• Pass federal tax legislation to expand the production of affordable and attainable housing
• Overturn inefficient local zoning rules
• Alleviate permitting roadblocks
• Adopt reasonable and cost-effective building codes
• Reduce local impact fees and other upfront taxes associated with housing construction
• Make it easier for developers to finance new housing
• Update employment policies to promote flexibility and opportunity

In Utah, these points could apply differently across communities. Stacy Young, Southern Utah Home Builder’s Association’s government affairs officer, said these points have seen various degrees of success.

According to Young, some of the points are more applicable on a federal level. 

“We’re affected by all of these,” said Young.”But I would say our people are engaged in reforming the regulatory processes around homebuilding.”

Young explained that some communities aren’t growing as fast as others. Consequently, the housing supply will look uneven across Utah.

How is Utah faring? 

Despite the differences in community size, Young said Utah excels at a few of the ten points. He’s confident that Utah’s next generation of builders, which is covered under the second point, will help lower home prices.

Young said that you can’t meet demand without a skilled workforce. 

“Building is still a popular career path locally,” he said. “That’s definitely one area we’re more optimistic than not.”

Still, Young said that Utah needs to become more flexible in homebuilding to help new homebuyers. Flexibility is covered under point 10. 

“The ability to deliver the kinds of houses people can afford and prefer is going to be key… If we can create a system that allows for more flexibility in the types of housing we can deliver, I think that’s probably the most impactful thing we can do.”

Hopeful timelines for lower home prices

Young is hopeful that Utah can increase supply by getting the flexibility down. Additionally, he hopes we’ll live to see the results.

“We have a track record for meeting that challenge… I think this won’t be a permanent condition, but just a temporary problem we’ve had to solve.”

He guesses, under normal events, it’ll still take years before we start seeing results in home prices. 

“This is something we need to resolve structurally; therefore, it’s going to take a longer period of time before people feel that in their pocketbooks. I think realistically, three years is the soonest folks would start to feel that. And hopefully by five years, it’ll be much more obtained,” said Young. 

Related: New report ranks Utah as one of the least affordable places to buy a home in the U.S.