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> Utah Cities Use Accessory Dwelling Units to Combat Rising Housing Prices

Several Utah cities are turning to accessory dwelling units (ADUs) as a way to address skyrocketing home prices and the growing housing crisis, offering more affordable living options for both homeowners and renters.

Main takeaways:

• Cities like Farmington and Millcreek are promoting ADUs to increase housing supply and help homeowners afford their properties, with Farmington relaxing regulations to make ADUs easier to build.

• ADUs, often basement or detached units, are being used by young couples, aging adults, and even families housing elderly relatives to manage living costs and provide care.

• Despite growing interest in ADUs, high construction costs remain a barrier, with some officials suggesting developers could build homes with ADUs pre-designed to alleviate costs and help solve housing shortages in the future.

More News and Reports

> Debating Development on Utah's Public Lands: Despite the allure of using public lands for housing development to combat Utah's housing crisis, such a strategy may not be as beneficial as hoped. Infrastructure costs, environmental impact, and the potential perpetuation of urban sprawl raise concerns about the viability of this approach. Advocates argue for alternative solutions, like revising local land use policies to favor higher-density and infill development, which could potentially offer more sustainable relief to the housing shortage without encroaching on public lands.

> Optimism in Commercial Real Estate Market: Despite facing significant challenges, commercial real estate (CRE) investors are expressing confidence that the worst is behind them. A recent survey indicates that a majority believe CRE asset values are bottoming out this year, with 38% already seeing stabilization. Interest rate cuts anticipated from the Federal Reserve are expected to provide a much-needed boost, particularly benefiting sectors outside of office spaces, which have been hit hard by remote work trends and high vacancy rates. However, rising insurance costs remain a concern, potentially impacting growth across all regions. This sentiment is captured in the Burns + CRE Daily Fear and Greed Index, which reflects a modestly positive outlook for the coming months.