Utah Pushes for "Starter Condo" Development

Sold Multi-Unit Listings Down 6.7% and $/SqFt Down 8.8% YTD; Trump Mulls End to Fannie/Freddie Conservatorship

Author

David Robinson
May 28, 2025

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Sold Multi-Unit Listings This Past Week

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Utah Market Data

> Multi-Unit (2+ Units) - Sold Listings

The number of sold multi-unit listings is down 6.7% YTD going from 194 to 181. Meanwhile the median price per square foot for sold multi-unit listings is down 8.82% YTD going from $252 to $245.

> Single Family Homes - Sold listings

The number of sold single-family listings is down 1.7% YTD going from 14,198 to 13,956. Meanwhile the median price per square foot for sold single-family listings is up 1.49% YTD going from $231 to $235.

Rates & Financing

> Mortgage Rates as of 5/28/2025

Headlines & Insights

FEATURED

Utah is expanding Governor Spencer Cox’s affordable housing initiative to include starter condominiums, aiming to boost homeownership opportunities for first-time buyers priced out of single-family homes.

Key insights for Utah:

  • Condo development was added to the state’s $300M low-interest loan program to address affordability and land constraints, especially near transit zones.

  • Developers face fewer regulatory barriers under recent legislation, and the Utah Housing Corporation is set to finance condo projects similarly to single-family starter homes.

  • Cities like Salt Lake, Ogden, Murray, and Spanish Fork are being eyed for new starter condo developments, with prices potentially below $350,000—well below Utah’s current entry-level home prices.

What this means for Utah investors:
The shift toward starter condos signals a statewide push for more for-sale housing inventory in the $300K–$450K range—filling a gap between costly single-family homes and increasingly expensive rentals. For investors, this could reshape competition, particularly in the entry-level segment. Investor strategies may need to shift from targeting new build rentals to acquiring or converting older assets, as more first-time buyers transition into ownership via lower-cost condos. Additionally, deed restrictions on some projects will limit rental opportunities, reinforcing the importance of understanding local zoning and project qualifications when evaluating deals.

Utah Headlines

Utah lawmakers start process designed to more effectively address housing crisis

Utah lawmakers are taking a look at the state's housing policies to try to make them more efficient and effective in addressing the housing crisis.

www.ksl.com/article/51317499/utah-lawmakers-start-process-designed-to-more-effectively-address-housing-crisis

Utah Among Top 5 States for YOY Employment Growth

Nonfarm payroll employment increased in 40 states in April compared to the previous month, while it decreased in 10 states and the District of Columbia.

eyeonhousing.org/2025/05/state-level-employment-situation-april-2025

Utah Eyes Starter Condos

Starter condos in addition to affordable single family homes? See Utah's latest plan to get more affordable housing built.

www.deseret.com/utah/2025/05/26/starter-condos-are-new-plan-to-get-affordable-housing-built-in-utah

National Headlines

Trump Mulls End to Fannie/Freddie Conservatorship

Experts say it could reduce government backing, while increasing risk and mortgage rates.

www.globest.com/2025/05/27/multifamily-investors-brace-for-change-as-trump-mulls-end-to-gse-conservatorship

Experts Warn Housing Could Be the Tipping Point for the Next Recession

Make housing expensive enough, and millions will have to pull back all sorts of other spending.

www.globest.com/2025/05/28/experts-warn-housing-could-be-the-tipping-point-for-the-next-recession

U.S. Home Purchases Were Canceled at the Second Highest April Rate on Record

1 in 7 deals fell through last month. The share was higher in much of Florida—home to 5 of the 10 metros with the highest cancellation rates.

www.redfin.com/news/home-purchase-cancellations-april-2025

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David Robinson

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