Construction of more starter homes is prioritized in Utah due to their scarcity. Here's an update on the progress.
In Utah, the search for affordable housing has become a pressing concern, with median home prices soaring to over half a million dollars. Amidst this housing crisis, Jed Nilson, the head of Nilson Homes, is making strides to bring down the cost of starter homes.
Nilson, who started out as a real estate agent while in college, is aiming to build 35,000 lower-cost starter homes in the state over the next five years. His vision is to create a home that is once again affordable on a single income, a goal that resonates with many Utah residents.
One such couple who have already moved into Nilson's Plain City development are Miranda and Cole Potokar. They expressed their gratitude for their new home, feeling fortunate to have found it in the current market.
However, Utah's governor, Spencer Cox, has faced opposition in his proposal to change zoning laws to facilitate the construction of more affordable homes. Despite this setback, the state has collaborated with Nilson to add more homes to his Plain City development and place them on smaller plots.
The homes built by Nilson Homes come with priority for first-time buyers, teachers, first responders, and active military service members, reflecting a commitment to helping those who struggle to enter the housing market. The company's three-bedroom model is priced just under $400,000, while a smaller two-bedroom home goes for about $370,000.
In an effort to cut costs and improve affordability without compromising quality, Nilson is exploring various strategies. This approach has seen him secure low-interest construction loans from Utah lawmakers, a move that is expected to help bring down costs for potential homebuyers.
Despite these efforts, only about 5,100 starter homes have been built or are in the process of being built so far. Housing experts argue that bolder changes, such as altering zoning laws to allow smaller lot sizes, are needed to address the housing crisis effectively.
Interestingly, a growing number of states, including Texas, have taken this approach, preempting local laws to allow smaller lot sizes. It remains to be seen whether Utah will follow suit.
In the meantime, the median age of first-time U.S. homebuyers has reached a record high of 38, a reflection of the challenging housing market. For Nilson, this statistic underscores the need for more affordable housing solutions like those offered by Nilson Homes.
As the housing crisis continues to unfold, the work of developers like Nilson is more crucial than ever. Their efforts to make homeownership a reality for more Utah families are a beacon of hope in a challenging market.
