Utah residential building permits drop 20 percent from 2022 to 2023

As permits and housing starts decline nationwide, Utah finds similar challenges in its residential construction sector. Permitting activity in the state dropped for a second consecutive year in 2023, down 20 percent compared to the previous year, according to a new report from Point2, an international real estate search portal and a division of Yardi Systems Inc.

“This slowdown hints at challenges for housing affordability and availability across the state,” Point2 authors said.

Utah issued 25,289 new residential building permits last year, a 20 percent drop from 2022. The permit declines for both single-family and multi-family units reflects a tightening housing market, potentially limiting options for homebuyers.

In the Salt Lake City metro area, new permits dipped to 9,199 in 2023, a 7 percent year-over-year decrease, with single-unit buildings experiencing the steepest decline, down 17 percent, and highlighting growing pressures on the region’s housing market.

Medium-sized metros were not spared either, with Provo-Orem and Ogden-Clearfield registering permit decreases of 25 percent and 34 percent, respectively. The impact of permit declines also reached smaller metros like St. George (down 11 percent) and Logan (down 7 percent).

Nationwide, housing starts were down 9 percent.

The full Point2 report is available at www.point2homes.com/news/residential-construction-data.