Housing, Construction & Real Estate
The Kem C. Gardner Policy Institute provides leading real estate and construction research for the State of Utah. Our research provides decision makers with critical information about residential and non-residential construction trends and issues. In addition to construction research, our work focuses on housing research related to affordability and market stability. Our team works closely with real estate professionals, planners, economists, researchers and business, and community leaders to make informed decisions about the Utah economy.
Featured Research
Policy Brief: Housing Prices and Affordability
In 2022, higher home prices and a doubling of the mortgage rate combined to erode housing affordability. Thus, homeownership has become more difficult for many of Utah’s 333,000 renter households.
Ivory-Boyer Construction Report, Second Quarter 2022
During the first six months of 2022, total permitted construction value reached $7.23 billion, a 1.8% decrease over the same time period from 2021 (see Table 1). However, when controlling for inflation, the construction value decreased 6.0% (see Figure 1). This is the first decrease in inflation-adjusted construction value activity since 2012.
The Changing Dynamics of the Wasatch Front Apartment Market
The demand for rental housing increased during the COVID-19 pandemic, resulting in higher rental rates across the Wasatch Front.
Ivory-Boyer Construction Report, 1st Quarter 2022
After three years of increases, permitted construction value decreased between 2021 Q1 and 2022 Q1. During the first three months of 2022, total permitted construction value reached $3.46 billion, a 2.2% decrease over the same time period from 2021.
Policy Brief: Short-Term Rental Inventory
The rise of short-term rental (STR) properties exploded globally over the last decade. Listing platforms such as AirBnB, Booking.com, and VRBO became readily accessible to individuals to list their properties to generate additional income and provide services to out-of-town visitors.
Ivory-Boyer Construction Report Fourth Quarter 2021
The continued record breaking pace of permitted construction activity reached new milestones in 2021. The rebound in commercial activity in 2021 put the year total on the second highest in terms of construction value. The residential market also reached into new territory.
Salt Lake County’s Historic Apartment Boom: Past, Present, and Future Presentation
Salt Lake County’s housing shortage and high home prices have led to the “tightest” apartment market in the county’s history. In 2021, the vacancy rate dropped below 2%, and rental rates increased by double-digits. Builders and developers responded with a record number of rental units under construction and proposed.
Salt Lake County’s Historic Apartment Boom: Past, Present, and Future
Salt Lake County’s housing shortage and high home prices have led to the “tightest” apartment market in the county’s history. In 2021, the vacancy rate dropped below 2%, and rental rates increased by double digits.
Ivory-Boyer Construction Report, 3rd Quarter 2021
Construction activity continued its record-breaking momentum into the third quarter of 2021. While concerns over inflation and monetary policy bring a level of uncertainty into the real estate world, Utah’s construction activity continued at a record pace.
The State of the State’s Housing Market
Utah's housing market faces a severe imbalance that creates record price increases for homeowners and renters. The COVID-19 pandemic made the housing shortage worse by disrupting supply chains for building materials and distorting demand through lower interest rates and increased liquidity. For renters, the path to ownership narrowed further. Rental vacancy rates dropped to record levels and rental rates increased dramatically in the large Wasatch Front counties. Analysts expect price acceleration and production to remain positive in 2022. A housing bubble looks unlikely.
