Foundation Report: Utah housing taking swing toward multi-unit

The Utah Foundation has released the third part of its study, “Is the Middle Missing? A Guide to Expanding Options for Utah Homebuyers and Renters.” The new release, “Utahns’ Development Preferences,” reveals what Utahns favor for new housing.

The foundation explained that “Missing Middle Housing” is a term that encompasses a variety of multi-unit housing buildings that are house-scale, facilitate neighborhood walkability, accommodate changing demographics and preferences and are available to people with a range of incomes. Middle housing offers the potential to increase the supply of housing, but at a scale that is not objectionable to most neighbors and in a manner that can improve upon neighborhoods. There are obstacles to increasing this type of housing, though they are not insurmountable, the foundation report said.

Among the findings of the new report are:

• Housing development is changing. For example, in Salt Lake County, single-family detached development is becoming less common (24 percent of new units in 2020), while middle housing is on the increase (32 percent) and larger multifamily units are taking up the lion’s share of new development (44 percent).

• Utah Foundation survey respondents prefer single-family detached housing, but they offered positive responses to some small middle housing with the appearance of a single-family home.

• Utahns’ preference for the appearance of single-family homes suggests that middle housing will meet with greater acceptance if developed in a manner that mimics the style and scale of single-family dwellings.

• Nearly three-quarters (72 peercent) of survey respondents said that style is the most important factor (other than housing type) in their housing preferences, followed by scale — or the size compared to other homes (64 percent). Topping the list for open-ended comments is having lower density (35 percent).

• Half of survey respondents prefer housing of similar prices (47 percent) and similar types (50 percent) in their neighborhoods, but not far behind are people who prefer housing with a variety of prices (36 percent) and a variety of types (42 percent), which includes middle housing.

• Most survey respondents (60 percent) support more affordable housing options in their neighborhoods, with 38 percent strongly supporting more options. About 18 percent of respondents oppose more affordable housing options, while 22 percent are neutral.

• To address affordability issues, about 46 percent of survey respondents would accept middle housing in their neighborhoods, 33 percent of respondents oppose middle housing and the remainder are neutral.

• Expanding homeownership opportunities is an important component to any development strategy focused on middle housing. Homeownership is correlated with wealth; the median homeowner net worth is $255,000, while the median renter net worth is $6,300. However, in 2020, the share of renters priced out of Utah’s median-priced home jumped to 73 percent from 63 percent the year before.

“Given the socio-economic importance of homeownership, it is imperative to explore new ways to open entry-level ownership opportunities,” said Utah Foundation President Peter Reichard. “Utahns’ clear preference for single-family home types suggests there is a way to expand small multi-unit options in a way that neighbors will accept.”

Salt Lake County, the Sorenson Legacy Foundation, the Utah League of Cities and Towns, the Wasatch Front Regional Council and Y2 Analytics contributed to the foundation project.