Soaring Demand for Homes Causes Utah’s Affordable Housing Problem

Soaring Demand for Homes Causes Utah’s Affordable Housing Problem

Home buyers in Utah will need to find additional funding resources to improve their chances of acquiring properties.

A booming population has made it more difficult for buyers to find homes with prices that align with their budgets, leading to an unequal ratio of demand and supply. In July 2016, U.S. Census data showed that the state’s population reached around 3.1 million people.

Sellers’ Market

As demand is high and inventory remains low, prices are expected to be steep, especially for first-time home buyers, according to some real estate agents. The market is currently challenging for those looking to buy a house worth between $150,000 and $300,000. In the rare event that you do find one, be ready to compete with several buyers.

There are, however, some ways to ease the process of buying a home. Primary Residential Mortgage, Inc. noted that a fixed-rate mortgage or a Federal Housing Administration loan are only some options that can help you close a deal. At a time when many buyers try to outbid each other, lending companies also compete to drum up business from homebuyers by providing the most attractive rates.

Rental Rates

You might be thinking that renting an apartment or an existing home will be a better alternative than buying property. However, negotiating rents are only a part of the bigger problem. Some homeowners are wary of their neighbors renting out their apartments because of familiarity issues with strangers.

Other concerns involve eligibility since not everyone can simply sign up for a lease. The Utah County Housing Authority, for example, screens those that want to rent out their portfolio of apartments.

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Utah’s housing market is currently riddled with many challenges for buyers. Even if you’re willing to pay a premium to a seller’s price, that doesn’t always guarantee a done deal. Still, are you more willing to buy a house instead of renting it?