Representative Bennion proposes bill to enhance homeownership in Salt Lake County

In a pivotal meeting of the House Political Subdivisions Committee on February 25, 2025, lawmakers gathered to discuss a proposed bill aimed at addressing the declining rates of homeownership in Salt Lake County. The bill, introduced by Representative Bennion, seeks to implement a 30-day cooling-off period for investors looking to purchase single-family homes, allowing potential owner-occupants a chance to secure properties before they are bought by corporate entities.

As the discussion unfolded, Representative Bennion highlighted alarming statistics from a study by the Lincoln Land Institute, revealing that over 10,000 homes in Salt Lake County transitioned from owner-occupied to rental properties between 2018 and 2023. This trend, she argued, is contributing to a moral crisis in homeownership, with young families and workers leaving Utah in search of affordable housing elsewhere. Bennion emphasized the importance of homeownership for community stability, civic engagement, and economic growth, stating that homeowners are more likely to invest in their neighborhoods and local schools.

The bill proposes that during the first 30 days a home is on the market, buyers must sign an affidavit declaring their intent to occupy the property. This measure aims to prioritize owner-occupants over investors, who often have the advantage of cash offers and fewer contingencies. However, the bill also allows sellers to bypass this requirement if they can demonstrate an exigent circumstance, thus maintaining flexibility for those in urgent need to sell.

Committee members raised concerns about the potential implications of the bill. Some real estate professionals argued that the cooling-off period could inadvertently prolong the selling process, leading to increased costs for sellers who may face financial pressures. They cautioned that the bill might not effectively address the root causes of housing affordability issues, as the percentage of homes owned by large investors remains relatively low in Utah.

Public testimony reflected a spectrum of opinions. Supporters of the bill, including first-time homebuyers and real estate agents, expressed hope that it would level the playing field against corporate investors. They shared personal stories of struggling to find affordable homes in a competitive market dominated by cash offers from large firms. Conversely, industry representatives voiced skepticism, suggesting that the bill could complicate transactions and fail to significantly impact the overall housing market.

As the meeting concluded, the committee members were left to ponder the balance between protecting homeownership and ensuring a fair market for all buyers. The discussions underscored the complexity of the housing crisis in Utah, highlighting the need for comprehensive solutions that address both affordability and the dynamics of investor participation in the real estate market. The fate of the bill remains uncertain as lawmakers continue to weigh its potential benefits against the concerns raised during the meeting.