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Utah official says state fund aims to spur 35,000 starter homes by 2028; cites zoning, lending and tax incentives as barriers
Summary
The Utah official described barriers to starter‑home construction—local zoning (minimum lot sizes and garage requirements), a tightened lending market for small builders and tax incentives favoring retail—and outlined the Utah Homes Investment Fund using $300 million to lower interest rates for developers building homes under $400,000.
The interview turned to housing, where the Utah official said the market has failed to deliver starter homes for several reasons: restrictive local rules that prevent smaller lots and require garages, reduced lending availability for small builders after recent bank stress, and local tax structures that favor retail development over rooftops. "I don't think people understand that in so many cities right now, you cannot build a home without a garage," the official said, linking regulatory specifics to higher costs.
To address the gap, the official described the Utah Homes Investment Fund (about $300 million) intended to subsidize loans and lower interest rates for developers who build attainable homes priced under roughly $400,000; the state also plans to incentivize density near transit and consider changes to local tax incentives. The official said rents in some cities, including Salt Lake City, have declined (citing a 6.5% drop) amid increased apartment construction, but the "missing middle" of starter homes remains a policy target.
