Utah's 2025 legislative session concluded with several measures aimed at addressing the state's housing affordability crisis. While these initiatives represent progress, experts suggest that continued efforts are necessary to effectively tackle the issue.
Key Legislative Measures Passed
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Increased Housing Density for Affordability and Ownership (HB37):
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This bill permits local governments to approve denser single-family and multi-family developments if they meet specific criteria, such as:
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Deed restrictions requiring owner occupancy for at least five years on 60% or more of the units.
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Allocating at least 25% of units as affordable for households earning no more than 120% of the county’s median income.
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Ensuring 25% or more of units are under 1,600 square feet.
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Providing a 30-day initial preferential period for sales.
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Regulation of Short-Term Rentals (HB256)
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This legislation empowers cities, towns, and counties to enforce local short-term rental regulations more effectively. Officials can now use listings from platforms like Airbnb or Vrbo as evidence of violations, provided they have additional supporting information.
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Utilization of Utah Homes Investment Program Funds by Cities (HB360)
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This bill allows the state’s largest cities to create revolving loan funds aimed at promoting homeownership, thereby facilitating more residents in purchasing homes.
Expert Insights
Laurie Goodman, a fellow at the Urban Institute’s Housing Finance Policy Center, emphasized that while these measures address various factors contributing to high housing costs, no single solution exists. She highlighted the importance of incremental changes, noting that each legislative effort contributes to alleviating the housing shortage. Goodman cited California's approach, where successive bills since 2016 have significantly increased accessory dwelling unit permits, as a model for Utah to consider.
Democratic Perspective
Senate Minority Leader Luz Escamilla, D-Salt Lake City, expressed cautious optimism regarding the legislative developments. She acknowledged the progress made but indicated a desire for more comprehensive actions to address the housing crisis fully.
Conclusion
The recent legislative session in Utah introduced several measures aimed at improving housing affordability. While these steps are commendable, ongoing efforts and additional policies will be essential to effectively resolve the state's housing challenges.
