The Story
Housing development trends of the last two decades continue. By 2050, most Utahns live in single-family homes. Because many communities do not allow a full range of housing options and mandate minimum lot sizes, the housing that is built does not always correspond with what Utahns can afford. Housing options are limited for low-wage earners because Utah has fewer townhomes, low-rise apartments, condominiums, duplexes, and small-lot homes than needed. As a result:
- Utahns spend more on housing and less on other needs.
- More people require public assistance for housing and other needs.
- People with low incomes can afford to live in only a small number of neighborhoods, limiting their access to opportunities like good schools.
- Transportation costs are high for most Utahns because public transportation is limited and people must drive long distances to reach destinations.
Results
- Most households along the Wasatch Front are far from public transportation.
*Percent of households in Weber, Davis, Salt Lake, and Utah counties that are within 1/2 mile of public transportation in 2050.
- Housing supply marginally matches what people can afford.
- The average household spends $19,660 per year for transportation.
- Local infrastructure (roads, water, sewer, etc.) costs $30,155 per household.
- 15% of households are within one mile of a center with daily services.
Background
Reasonably priced housing and an affordable cost of living are vital for maintaining a high quality of life and improving Utah’s economy. Utahns spend a significant portion of their monthly budgets on housing and transportation. The less we spend on these needs, the more we have left to spend on other goods and services. As housing and transportation costs rise, more Utahns have difficulty finding a decent place to live and meeting monthly expenses without public assistance. However, if the cost of living is affordable, Utahns are more likely to stay and workers and employers are more likely to come to the state, improving Utah’s economy.
Housing Costs
To maintain affordable housing, the supply of housing types must match Utahns’ wants and incomes. If Utahns desire to live in a housing type (such as townhomes or apartments) that is in short supply, housing costs will increase for many. Providing a variety of housing options helps ensure that everyone has a good, affordable place to call home. Supplying the right mix of housing is challenging, however, because people’s housing needs evolve as their family size, income, job locations, or other circumstances change. In addition, Utahns’ demand for housing is changing as Baby Boomers age, average family size decreases, land for housing near job centers becomes less available, and market preferences change.
Increased costs for local infrastructure like roads and pipes can also increase the price of housing, because these expenses are typically passed on to homebuyers and renters, or included in tax bills.
Transportation Costs
Transportation costs are also a large part of a typical family’s budget. These costs are determined by how close housing is to jobs and daily needs and by the availability of good public transportation. If Utahns can drive less and own fewer or no vehicles, transportation costs will lower.
* Lowest 20% of Utah households
