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THE UTAH ECONOMY AND HOUSING MARKETS

THE UTAH ECONOMY AND HOUSING MARKETS. Presentation by James Wood Bureau of Economic and Business Research University of Utah November 2011. Forecast for Utah’s Major Economic Indicators Source: Governor’s Office of Planning and Budget . Year Over Percent Chg. in Utah’s Nonfarm Employment.

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THE UTAH ECONOMY AND HOUSING MARKETS

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  1. THE UTAH ECONOMY AND HOUSING MARKETS Presentation by James Wood Bureau of Economic and Business Research University of Utah November 2011

  2. Forecast for Utah’s Major Economic IndicatorsSource: Governor’s Office of Planning and Budget.

  3. Year Over Percent Chg. in Utah’s Nonfarm Employment

  4. Employment Drivers in Utah2002-1010

  5. HOUSING PROBLEM: VANISHING DEMAND • Household Growth Slows. Marriages/divorces, headship, decouple, marriage/divorce, migration • Deep Job Loss Due to Great Recession. • Income & job uncertainty • Credit Troubles. Credit worthiness, foreclosures & short sales • Middle Class Struggles

  6. 2011 First & Second Quarter Short Sales & REO Sales as % of Total SF Sales. Source: WFRMLS.

  7. CHANGE IN MEDIAN SALES PRICE OF EXISTING HOME

  8. BUY OR RENT? • 3 Bdrm 2 Bath Rent = $1,050 • Mortgage Pmt on Median Price Home = $1,100. • Tax Advantages = deductions, capital gain, yield. • Extreme Levels of Affordability for Ownership but Credit Worthiness Prevents Purchase. 70% of all homes, condos, twin & town homes sold in WF affordable to moderated income family. 65% of all single family homes in SL Co. affordable to moderate income family.

  9. Change in Renters and Rental Inventory in Utah • .

  10. WHAT ABOUT LOW INCOME RENTERS IN UTAH? Rental subsidy programs provide assistance for about 43,200 households: LIHTC (22,000), HUD (17,000), RD (1,600), Public Housing (2,600). Estimated 90,000 very low income (50% AMI; SL Co = $35,000) renter households with no assistance.

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