Utah County home construction costs surge 45% since 2020 raising insurance concerns

Harrisville City officials are grappling with rising construction costs that are impacting home affordability in the area. During the Planning Commission Work Session on January 8, 2025, discussions highlighted that the average cost for new home construction in Utah County has surged to $664,000, a significant increase attributed to a 45% rise in direct construction costs since 2020.

Commission members emphasized the importance of understanding these costs when establishing pricing for new developments. They noted that the current market conditions necessitate a careful evaluation of new construction pricing to ensure that future housing remains accessible to residents.

The conversation also touched on the geographical considerations for zoning and development. Some members suggested that expanding the zoning radius beyond Harrisville could provide more opportunities for affordable housing. However, concerns were raised about the implications of such expansions on land prices, particularly in areas adjacent to the city.

While no definitive decisions were made during the session, the discussions underscored the urgent need for strategies to address housing affordability in Harrisville. As the city continues to navigate these challenges, officials are expected to explore various options to balance development with community needs. The outcomes of these discussions will be crucial in shaping the future housing landscape in Harrisville.