Utah Proposes Law To Encourage Starter Home Construction

Utah lawmakers will consider legislation aimed at easing the construction of new starter homes.

Last week, state lawmakers introduced House Bill 184, which would create a process to allow people to request to build homes on smaller lots than is typically allowed by their local code. The city and zoning bodies would then have 30 days to respond, and if they don't, the request is deemed accepted.

The bill is aimed at the construction of starter homes on smaller lots that are a minimum of 5,400 square feet, as well as accessory dwelling units.

This follows the introduction of House Bill 68 late last month, which, if passed, would create a centralized housing division within the Office of Economic Opportunity that would oversee efforts to promote housing production that are now spread across different government departments.

In a press event previewing the state Legislature's priorities for the coming year, Steve Waldrip, senior adviser for housing strategy and innovation to Gov. Spencer Cox, said the state is focusing additional effort on improving homeownership.

"We have scarcity, and so the value of the homes we do have and are available has gone up, and it's outstripped our ability to provide adequate housing at a reasonable cost," Waldrip said.

A 2024 report prepared for the Utah Legislature estimated the state needs to build 153,000 new homes to keep up with an estimated demand of 248,000 new homes by 2030.

That includes 35,450 new starter homes, leading Cox to set a goal of building more for first-time homebuyers.

In the Realtor.com® state-by-state report cards, Utah received a C grade when it comes to affordability and construction on new homes.

The state joins several others that are currently considering new laws aimed at easing requirements for starter homes, including Florida, Maryland, Massachusetts, and Indiana.

Many of these proposals reduce lot size and setback requirements.