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Utah construction lender warns of rising townhome costs amid new tariffs and housing demand

January 23, 2025 | Cottonwood Heights Planning and Building, Cottonwood Heights, Salt Lake County, Utah


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Utah construction lender warns of rising townhome costs amid new tariffs and housing demand
The Cottonwood Heights Planning Commission held a business session on January 22, 2025, addressing key issues related to housing development and community concerns. The meeting focused on the challenges of increasing housing costs and the implications of new construction in the area.

One of the primary discussions centered around the rising expenses associated with building townhomes in Cottonwood Heights. A speaker highlighted that the use of high-grade materials in construction, combined with new tariffs affecting lumber prices, is driving costs up significantly. The speaker noted that the lumber package, which is a major component of townhome construction, could see a 20% increase due to tariffs, further complicating the affordability of housing in the region.

The speaker also referenced data from the Salt Lake Board of Realtors, indicating that Utah experienced an influx of 91,000 new residents in 2024, while only 11,000 building permits were issued across three counties. This disparity between demand and supply is contributing to escalating housing prices, making it increasingly difficult for residents to find affordable options.

Concerns were raised by community members regarding the impact of new developments on local infrastructure, including parking and school capacity. The speaker acknowledged these concerns but emphasized that limiting housing options ultimately leads to higher prices for everyone. They pointed out that even in the vicinity, single-family homes are priced at around $2.3 million, illustrating the stark contrast in housing affordability.

The meeting concluded with a call for the commission to consider the broader implications of housing development and the necessity of addressing the challenges posed by rising costs and community concerns. The speaker urged the commission to support the development process, which involves significant financial investment and extensive planning efforts, to ensure that more housing options become available in Cottonwood Heights.

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