The Salt Lake City area is ranked near the middle in a 50-city study of the value of a home and the cost to build it.
In the study, titled “Paying for Dirt: Where Have Home Values Detached from Construction Costs,” Salt Lake City ranks 23rd and in 2016 had a “construction cost ratio” of 1.45. The ratio, it said, is a rough gauge of the extent to which home values are driven by the value of land. It is determined by average home value to average construction cost. A ratio between 1 and 1.5 indicates that cities are producing enough new housing to keep home values loosely tethered to construction costs, it said.