Utah lawmakers are advancing a pair of proposals aimed at increasing the supply of starter homes as the state grapples with rising housing costs and a growing gap between supply and demand.
House Bill 184, introduced last week, would establish a new process allowing builders or property owners to request approval to construct homes on smaller lots than typically permitted under local zoning rules. Under the proposal, cities and local zoning authorities would have 30 days to respond to such requests. If no action is taken within that timeframe, the request would automatically be approved.
The legislation is designed to encourage development of starter homes on lots as small as 5,400 square feet, as well as accessory dwelling units, offering builders more flexibility while maintaining minimum standards.
The bill follows another proposal introduced late last month, House Bill 68, which would create a centralized housing division within Utah’s Office of Economic Opportunity. That division would consolidate housing-related responsibilities currently spread across multiple state agencies, with the goal of streamlining oversight and accelerating housing production.
State officials say the legislation reflects a growing recognition that affordability challenges require structural changes in how housing is planned and approved.
In a press event outlining the Legislature’s priorities for the upcoming session, Steve Waldrip, senior adviser for housing strategy and innovation to Gov. Spencer Cox, said the state is placing renewed emphasis on improving access to homeownership.
“We have scarcity, and so the value of the homes we do have and are available has gone up, and it’s outstripped our ability to provide adequate housing at a reasonable cost,” Waldrip said.
Housing demand in Utah has continued to outpace construction. A 2024 report prepared for the Utah Legislature estimated the state would need to build 153,000 new homes to meet projected demand of 248,000 additional households by 2030.
Of that total, analysts said approximately 35,450 new starter homes would be required, prompting Gov. Cox to set a goal of expanding supply for first-time buyers.
Despite Utah’s strong population and economic growth, affordability remains a concern. In Realtor.com®’s state-by-state housing report cards, Utah received a C grade for affordability and new-home construction.
Utah is not alone in pursuing changes aimed at expanding starter-home construction. Lawmakers in several other states — including Florida, Maryland, Massachusetts, and Indiana — are also considering measures to reduce minimum lot sizes, ease setback requirements, or otherwise remove barriers to smaller, entry-level homes.
Supporters argue that such reforms could help address affordability without sacrificing neighborhood character, while critics in some communities have raised concerns about infrastructure capacity and local control.
Lawmakers are expected to debate both Utah bills during the upcoming legislative session as housing affordability remains a central issue statewide.
Originally reported by Tristan Navera in Realtor.
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