Jed Nielsen outlines Utah's urgent need for affordable starter homes

The Provo City Council Work Meeting on February 25, 2025, focused on the pressing issue of attainable and owner-occupied housing in Utah. Jed Nielsen, president and CEO of Nielsen Homes, presented a comprehensive overview of the current housing crisis, highlighting the challenges faced by first-time homebuyers in the state.

Nielsen emphasized that Utah ranks as one of the least affordable states for housing, with a significant shortage of starter homes. He noted that in 2024, the state faced a deficit of 37,000 housing units, a stark contrast to previous years when there was an oversupply. The median home size in Utah is notably larger than in other states, contributing to the affordability crisis. In 2022, only 12% of homes sold were affordable for individuals earning the median income, underscoring the difficulties many face in achieving homeownership.

In response to these challenges, Governor Spencer Cox initiated a plan to construct 35,000 starter homes over the next five years, which Nielsen described as the largest initiative of its kind in the country. The goal is to ensure that future generations have the opportunity to own homes, a prospect that has become increasingly elusive.

Nielsen's presentation included details about the design and pricing of new starter homes, which aim to be affordable while maintaining quality. The proposed homes will feature smaller lots and innovative designs to keep costs down, with prices expected to range between $350,000 and $450,000. The initiative also includes a 10-year deed restriction to ensure that these homes remain owner-occupied, preventing them from being converted into rentals.

The meeting highlighted the collaborative effort required from various stakeholders, including local municipalities, developers, and financial institutions, to address the housing crisis effectively. Nielsen expressed optimism that by working together, they could create communities that not only provide affordable housing but also foster a sense of pride and belonging among residents.

In conclusion, the Provo City Council's discussion on attainable housing reflects a growing recognition of the urgent need for solutions to the housing crisis in Utah. With the governor's initiative and the commitment from local builders, there is hope for a future where homeownership is within reach for more families in the state.