(The Center Sq.) – Housing rates in at the very least three cities in Utah are overvalued by extra than 50%, according to a new report.
Scientists at Florida Atlantic College and Florida International University scored the best 100 most overpriced U.S. towns utilizing open-source info from Zillow and other vendors. They found residence prospective buyers in several Utah cities are paying out nicely higher than what houses are really truly worth.
Scientists stated Ogden home prices are overvalued by over 64%, with the common dwelling listing at $535,818, as of the stop of April. In the meantime, the predicted home value in phrases of worth was significantly reduce at $325,264. Only two other U.S. cities, Boise and Austin, Texas, experienced far more inflated home costs.
The scientists located homes in Provo have been overvalued by at the very least 57%. The normal property listing was $585,024 when compared to the anticipated value of $372,568.
The researchers explained that a further Utah metropolis in the prime ten was Salt Lake Town, with residences overpriced by 55.7%. Regular property listings attained $602,765 at the conclude of April, although the anticipated selling price of people exact same properties averaged close to $386,998.
Gov. Spencer Cox acknowledged Utah’s much less than great housing sector previous 7 days in an on line chat hosted by the J. Ronald Terwilliger Bipartisan Coverage Heart.
“The housing issue in Utah is worse than most of us recognized or anticipated,” the governor reported, introducing that housing is at present a person of the state’s largest worries.
House prices in Utah grew 27% just in 2021 on your own, stated Cox. It comes as the condition is suffering from a housing scarcity that has exacerbated the difficulty. The governor stated they are small by about 40,000 residences.
“Utah is at the moment now a person of the best 10 worst housing markets in terms of affordability when you appear at the money relative to what housing price tag,” Cox stated.
Although properties are currently being developed at an expedited level, the governor reported it is not holding up with the need. He pointed to inhabitants density, lack of “deeply affordable housing,” and the increased use of small-time period rentals like Vrbo and Airbnb as contributing things to the housing scarcity. His administration estimates about 20,000 properties in Utah are staying utilized as short-time period rentals, but AirDNA estimates somewhere around 12,000 households are outlined as rentals.
“That’s housing inventory that now isn’t staying rented to people or obtainable to order,” said Cox.
Other cities mentioned in the top rated ten overvalued housing markets in the U.S. bundled Las Vegas, Atlanta, Georgia, Phoenix, Fort Myers, Florida, and Spokane, Washington.