Utah's Housing Market Is Booming.

• Author: Miller, Derek B.

By the time our children are grown, the average home in Utah will cost $700,000. Here's how we can keep housing prices affordable for the next generation.

For the first time in 40 years, Utah has more households than available housing units. This housing shortage creates a serious threat to our state's cost of living and overall economic prosperity. While most of us recognize that we have a strong housing market, we may not all have a clear understanding of the issues at play.

One impact of high and increasing housing prices is that businesses across the state are having a difficult time recruiting and retaining talent. Noticing this trend and feedback from our members, the Salt Lake Chamber decided to take a closer look by commissioning a study from the Kem C. Gardner Policy Institute at the University of Utah. This landmark study examines Utah's housing market over the last generation, current trends, and projections for the future.

UTAH IS GETTING MORE AND MORE EXPENSIVE

The study clearly shows that Utah faces a looming housing affordability crisis. The findings also validate business leaders' concern that many of their current or potential employees could be priced out of the housing market. If trends persist in the next several years, the typical Utah family will spend nearly 50 percent of its income on housing. Already, housing is 20 percent more expensive than some of our top competitor cities in economic development such as Boise, Las Vegas, and Phoenix.

For me, the report has personal implications. By the time my children are grown and have children of their own, at the most conservative number, a modest-sized, single-family home in a suburban community could cost more than $700,000. Part of our growth and prosperity is due to the fact that Utahns want to stay here, close to their families and in the communities they love. The way things are going, that simply may not be possible for many.

A FEW WAYS WE CAN KEEP IT AFFORDABLE

In 2006, Clark Ivory, CEO at Ivory Homes, could see the market turning for the worst. He sounded the alarm bells with local media, the Federal Reserve Board, and other builders. Ivory now feels that same sense of urgency.

"While we are facing a totally different market, one of robust demand but limited supply, we all need to focus on how we're going to handle our current gap in housing with our state's growing population," Mr. Ivory says.

To address this, Ivory Homes has been working to try to keep Utahns from...