Housing and Neighborhood Development - Housing Indicators

Market Indicators 

Construction Permitting - Q2 2017

The rate of permitting for new residential units has continued to slow into the second quarter of 2017. 2015 brought with it an incredible boom in permitting which fueled comparable new-unit sales into 2016, but the market appears to be tappering some.

While construction should continue at a steady pace for the coming 9-12 months, by Q2 and 3 of 2018, multi-family residential construction is likely to slow considerably compared to the recent trend.

Looking at the table below, it is easy to see why. 

  New Construction Additions/Alterations/Repairs Total Construction Value
  Permitted Units  Residential Valuation  Nonresidential Valuation Residential Valuation Nonresidential Valuation
Apr-17 112 $18,536 $74,423 $4,171 $25,131 $122,261
May-17 4 $2,350 $0 $3,593 $67,928 $73,872
Jun-17 4 $1,506 $10,545 $4,108 $16,899 $33,058
Q2Y17 Totals 120 $22,392 $84,968 $11,872 $109,958 $229,190
             
Apr-16 280 $33,607 $1,948 $3,877 $22,126 $61,558
May-16 271 $41,227 $12,013 $2,868 $23,968 $80,075
Jun-16 324 $43,195 $6,450 $5,582 $11,813 $67,039
Q2Y17 Totals 875 $118,029 $20,411 $12,326 $57,907 $208,672
             
Percent Change -86% -81% 316% -4% 90% 10%

*All $values are in the thousands*

The number of new residential unit permits is down by 86% compared to Q2 of 2017. A cooresponding reduction in residential valuation follows. However, non-residential construction in the city is up by a staggering 316% over the period last year.  
 

Home Sales 

Home prices continue to climb in Salt Lake City with Q2 of 2017 ending with the highest median sales point for any quarter in history at $310,000.

Home Prices                                                      

The graph below dipicts the total number of homes listed and homes sold since 2009. 2016 was the first year that more homes were sold in Salt Lake City than were actually listed on the market. This trend has through Q1 and Q2 of 2017, with 2,042 homes listed for sale and 2,114 actually sold. 

Listings vs. Sales

Vacancy Rates

Rental Vacancy Rates are consistently low. Across 7 different surveys of the downtown market, vacancy rates hover between 2% and 4.5%, averaging 3.9% over a 12-month period for buildings surveyed in the greater downtown area. Such a low vacancy ratereally complicates things for residents who want or need to move, forcing many people to look outside the city when their lease is up.  

Wages & Employment

Another incredibly important indicator for assessing Salt Lake's livability is the relationship between wages and employment. Salt Lake's employment rates are continually a national standout, as the graphs below detail. But wages in the region lag behind the national average. This imbalance is driving the high demand for housing but prevents many people from being able to afford a home. 

Salt Lake Employment Rate vs. National Average                                                                             

      

Salt Lake Employment by Key Sectors

Salt Lake Average Wages  

HAND Program Indicators 

Housing Trust Fund

Portfolio Overview 

Loans

43

Total Lending

$22,398,381

Estimated Repayments Per Year:

$550,000

Annual Budget

$6,500,000

Recent Projects

Property Name

Type

Affordable Units

Affordable Defined

HTF LOAN

The Road Home

(House 20 Program)

Transitional

20

>30%

$128,000

Tenfifteen Partners

Multifamily

11

31-60%

$380,000

Low Wage Workers Subsidy

Transitional

8

31-60%

$200,000

Granary Place LLC.

Multifamily

134

31-60%

$1,000,000

Liberty Blvd. Apartments

Multifamily

54

31-60%

$1,200,000

Village Marmalade

Multifamily

24

31-60%

$750,000

616 South Holdings

Multifamily

274

31-60%

$1,000,000

900 East Lofts

Multifamily

54

31-60%

$750,000

North 4th

Multifamily

80

31-60%

$1,525,000

 

Housing Rehabilitation - Q2Y17

HAND provides rehabilitation loans and grants to households in need throughout Salt Lake City. These projects may include roof repairs, heating and electrical improvements, and accessibility upgrades that make a home livable for individuals with disabilities. 

Single Family Projects   Multi-family Projects
Projects Closed 15   Number of Projects 1
Dollar Amount $169,513.00   Dollar Amount $12,139.00
Average Per Project $11,300.87   Average Per Project $12,139.00
Number of Units 15   Number of Units 2
Average Per Unit $11,300.87   Average Per Unit $6,069.50

To make these projects a reality, HAND balances financing across a series of different sources, matching each applicants situation with the most appropriate fund soruce. 

FUNDING SOURCES Fiscal YTD % OF FUNDS 4th Quarter % OF FUNDS
07/01/16 – 6/30/17 4/01/17 – 6/30 /17
Community Development Block Grant $848,900 42% $80,040 60%
Rental Rehab Funds  $248,540 18% $2,300 29%
Personal Contributions $234,177 7% $65,075 8%
Private Funding Sources $169,680 0% $169,680 0%
HOME $536,840 33% $80,970 3%
Other Funds $2,273 0% $0  
TOTAL $2,040,399   $398,065  

For more information regarding Salt Lake City's Housing Programs, visit slcgov.com/hand/housing-programs.