Nationally, home building slowed down this year. Total housing permits fell 2.3% year over year, and multifamily construction dropped even more, down 6.3%. Here in Utah, it feels like new developments popping up on everywhere, but it really heavily depends where you live. St. George, Utah County, and Salt Lake City are all building at very different speeds right now.

Builders across the country pulled back slightly this year. Single-family permits dipped just 0.2% year over year, basically flat, but permits for larger apartment buildings (5 units or more) fell a sharp 6.3%. Houston and Dallas remain the biggest builders in raw volume, while smaller Sun Belt metros are leading on a per-person basis.

Here's what’s crazy though... Over the past year, St. George permitted 11.9 single-family homes per 1,000 residents. That ranks 8th highest among the nation's 250 largest housing markets, ahead of Austin, Nashville, and nearly every other major Western metro.

To put that in perspective, that's roughly 5 times the per-capita rate of Salt Lake City. St. George is one of the most active homebuilding markets in the entire country right now, not just in Utah.

Utah County area permitted 7.24 single-family homes per 1,000 residents over the past year (5,501 total single-family permits). That's well below St. George's boom, but more than three times Salt Lake City's rate of building single family homes.

Salt Lake City on the other hand has scaled back on building single family homes quite a bit. Single-family permits per capita sit at just 2.4 per 1,000 residents, one of the lower rates among major metros, and it’s a trend that’s been accelerating the past several years. SLC issued 6,471 single-family permits back in 2021. This year, SLC single family permits are down to 3,157, a drop of more than 50% in five years.

That being said, Salt Lake City's multifamily permitting rate (31.3 units per 10,000 residents) is actually one of the higher rates in the country, meaning a lot of new apartments are on the way as new single-family construction slows.

Between just these three larger markets within Utah, you get a state building in three different directions. St. George is adding new single-family supply rapidly, so much so that single family home prices have softened here most between the three markets. Utah County on the other hand is building at a steady, sustainable rate that matches its price growth. Salt Lake City is holding back on new single family homes while building up its apartment stock. With housing affordability as strained as it is in Utah, we’re blessed to live in a state where new supply is being added regardless. But you’ll find very different products being built between all three markets.

If you're shopping in the St. George area, you're going to see a lot of new construction competing for your attention, and that competition usually means builder incentives are on the table. Ask about rate buydowns, closing cost credits, or design upgrades before you assume the listed price is firm.

In Utah County, supply and demand are mostly moving together. While a lot of supply is being added, Utah County is also experiencing the most consistent and accelerating population growth. That being said, we’re still finding pretty heavy incentives on a lot of new builds. I think the average among big production builders in the area is around 9% right now. Meaning the builders are paying 9% of their sales price towards your closing costs, buying down interest rates, upgrades, etc.

If you're shopping in Salt Lake City for a single-family home, you're shopping in a supply constrained market, which means less competition from freshly built homes and a resale market that will hold its value over time.

Curious how this plays out in your specific price range or neighborhood? Just let me know by replying and I'll pull numbers for where you're looking.

If your home is near Utah County or St. George, know that your buyers have a lot of new-construction options competing for their attention, and builder incentives can make new homes look more attractive on paper. Pricing sharp and highlighting what a resale home offers that new construction can't (mature landscaping, established neighborhoods, no construction next door) matters more than you might think.

In Utah County specifically, you’ll find that specific zip codes perform differently when competing against new construction. Regardless of your zip code, realistic pricing based on current comparable listings is what moves a home fastest in this market.

If you're selling in Salt Lake City, the slowdown in new single-family building is actually working in your favor. Less new competition means your home isn't competing against a wave of brand new homes down the street.

Thinking about listing soon? Let's talk before you settle on a number. I'll pull current data for your specific neighborhood so you know exactly where you stand.

Here to serve,

P.S. Curious what your home is actually worth in today's market? Reply with your address and I'll send you a free, no-pressure breakdown.