I live in Utah, and I’d never exactly thought of the state as an expensive place to live, but changes creep up on you. When we moved to Cedar City, not quite thirty years ago, the cost of living was statistically about 94% of the national average. Today, depending on which index you use, we’re between 99% and 103% of the national average, and I suspect that those numbers are low. My property taxes, while not insignificant and low by the standards of some states, have doubled over the last eight years. The price of natural gas has tripled since last year.
But where Utah has really taken a hit is in the increase in housing prices. Depending on which figures or indices you look at, Utah is on average between the fourth and tenth most expensive state for housing, and housing prices have roughly doubled over the past fifteen years. Housing prices in Cedar City have more than doubled.
Four factors, I suspect, lie behind the rapid and substantial price increases. First, Utah has the highest birth rate in the nation, and has had for decades. Second, immigrants are pouring into the state, especially into Cedar City, which has one of the fastest growth rates in the nation, and the majority of those immigrants, at least here in town, are from California. Third, the local university has expanded from 3,500 students to over 15,000. And fourth, despite new housing developments everywhere, the amount of new housing hasn’t matched the demand.
There’s another factor, as well – that too many of the developers and builders are concentrating on higher-end housing, and that’s reflected in the fact that Cedar City now has a small but growing number of homeless people, while high-priced houses up for re-sale take a long time to sell, because the majority of newcomers insist on building new houses, most likely with the gains from selling houses in California and elsewhere.
But then, what’s happening here is also occurring in far too many other areas as well.