![]() These types of units form excellent starter homes for young families that start building equity. The result is that starter homes are essentially illegal.īuilders have developed very attractive new homes with multiple units in the same building, in many cases designed in a way that looks like a large single-family home. Yet, of 35 local governments that were sampled in a recent Envision Utah study, only nine allow lots less than 7,000 square feet in any single-family zone. Putting the exact same home on a 5,000 square foot lot rather than a 10,000 square foot lot can reduce the home price by 22%, while doubling the number of new units built. Utah has made some progress in decreasing required lot sizes, but we’re still, at about 10,000 square feet per new lot, far higher than where the market would go in the absence of zoning regulations. Luckily, national research, local stakeholder discussions and Utah public opinion all point to the same three reforms: allowing smaller lots, allowing more units on the same lot or in the same building (e.g., a duplex, town home, or basement apartment), and allowing the highest densities in mixed-use centers, which are places with housing, shopping, jobs and other destinations arranged close together in a walkable design. Of course, most zoning regulations exist for a reason, so we should target reforms for those regulations that have the highest impact on cost and the lowest public benefit. The converse is also true - less regulated markets often have more affordable homes. ![]() Areas with higher regulation tend to have lower permitting activity as well as higher prices. National research is clear: There is a strong correlation between strict zoning regulation and housing affordability. One key factor is government regulation, or zoning. So how do we stimulate more housing? That also has a simple answer: make it cheaper and easier to build. But if we can build more affordable new units, that’s even better. In fact, new homes will typically be more expensive than existing homes, but the new supply is critical. Even luxury, expensive units help, because the people who move into that housing open up homes for others. The solution is simply more housing - of all kinds. Spencer Cox: Our kids need paths to homeownership.
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