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Turning Houses into Homes®

Table of Contents Features

spiritofamerica©/ Adobe Stock

10 Rising Housing Prices: Two Sides of a Coin James Wood

10 Rising Housing Prices: Two Sides of a Coin

18 Steve Perry – 2022 President of the Salt Lake Board of Realtors® 20 13 Home Trends Stealing the Spotlight in 2022 Barbara Ballinger 30 How Jobs, Inflation May Influence Borrowing Costs

Columns 7 Raising the Bar Steve Perry – President’s Message

Departments 8 Happenings 8 In the News 28 Housing Watch

18 Q & A with Steve Perry

On the Cover: Cover Photo: jonbilous©/ Adobe Stock

murattellioglu©/ Adobe Stock

This Magazine is Self-Supporting

20 13 Home Trends in 2022

Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.

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slrealtors.com 4 | Salt Lake Realtor ® | January 2022

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Salt Lake

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President Steve Perry Presidio Real Estate

Morelza Boratzuk RealtyPath Hannah Cutler Coldwell Banker

First Vice President Rob Ockey Century 21 Everest

Laura Fidler Summit Sotheby’s

Second Vice President Dawn Stevens Realty One Group Signature

Amy Gibbons Keller Williams Jennifer Gilchrist Utah Key Real Estate

Treasurer Claire Larson Woodside Homes

Tony Ketterling Equity Real Estate

Past President Matt Ulrich Ulrich Realtors®

John Lucky Berkshire Hathaway Jodie Osofsky Signature Real Estate Utah

CEO Curtis Bullock

Janice Smith Coldwell Banker

Directors

Carlye Webb Summit Sotheby’s

Jenni Barber Berkshire Hathaway

Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com

Managing Editor Dave Anderton Publisher Mills Publishing, Inc. www.millspub.com President Dan Miller Art Director Jackie Medina Graphic Design Ken Magleby Patrick Witmer

Sales Staff Paula Bell Paul Nicholas

Office Administrator Cynthia Bell Snow Salt Lake Board: (801) 542-8840 e-mail: d ave@saltlakeboard.com Web Site: w ww.slrealtors.com The Salt Lake Board of REALTORS® is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support the affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. The Salt Lake REALTOR® is the monthly magazine of the Salt Lake Board of REALTORS®. Opinions expressed by writers and persons quoted in articles are their own and do not necessarily reflect positions of the Salt Lake Board of REALTORS®. Permission will be granted in most cases, upon written request, to reprint or reproduce articles and photographs in this issue, provided proper credit is given to The Salt Lake REALTOR®, as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication. Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR® are not necessarily endorsed by the Salt Lake Board of REALTORS®. However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.

OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ®

Raising the Bar As the Internet gained momentum in the 1990s, some predicted real estate agents would no longer be needed. However, real estate agents have not only survived, but thrived. Why? As the real estate transaction grew in its complexity, home buyers and sellers increasingly turned to professionals to navigate the process. That’s why my vision for 2022 is to continue to raise the level of professionalism and education among our 10,000 members. With more than 100 new members joining every month, it is important that our Realtors® are skilled and provide the “human element” in the real estate transaction process. The human element is something that apps, websites and algorithms can never provide. Ultimately, brokers have the responsibility to properly train their agents, but the Salt Lake Board of Realtors® does supplement those efforts. The Board offers live training courses and regular legal updates and will continue to do that in 2022. Everything we do at the Board fits within our Vision Statement. The vision of the SL Board of Realtors® is that real estate professionals receive value from and participate in Board membership. This is accomplished under four main areas. I will highlight a few things under each category. 1. Advocacy – The Board is the principal advocate and representative for its members. Our goal is to make sure elected officials acknowledge the Board and consult with us when real estate is involved. We are so fortunate to have such an amazing Government Affairs Committee. 2. Education – I mentioned that we will continue to offering training and education to our members through live classes. But I would encourage each of you, especially brokers, to help set the example of what a good agent represents. We all need to represent the real estate profession well. 3. Communication – In 2022 we intend to continue a marketing campaign of the benefits of using a Realtor®. We are advertising this campaign at Utah Jazz games, University of Utah athletic events, the Salt Lake Bees, Hale Centre Theatre, and UTA buses. We will also continue to promote the Realtor® brand on social media. We have hired an advertising agency to make the Realtor® message strategic and help distribute it. 4. Service – This year the Board is awarding 24 American Dream homeownership grants. The grants are worth $5,000 each and are awarded to first-time home buyers. The grants can help with a down payment or pay closing costs. The Board is committed to serving and making the community a better place. This year will prove to be challenging and rewarding for Realtors®. Make sure you’re the kind of professional a home seller or buyer would hire. Happy New Year!

Steve Perry President

REALTOR® is a registered mark which identifies a professional in real estate who subscribes to a strict Code of Ethics as a member of the NATIONAL ASSOCIATION OF REALTORS®. October 2005

January 2022 | Salt Lake Realtor ® | 7

Happenings

In the News

Image licensed by Ingram Image

Kevin Ruck©/ Adobe Stock

Utah Ranks No. 7 Among States in Numeric Growth With a population of 3.3 million people, Utah ranked No. 7 in numeric growth from July 1, 2020 to July 1, 2021, according to the U.S. Census Bureau. During the period, Utah had a numeric population gain of 56,291 people. Texas was No. 1 in numeric gain, increasing by 310,288. Florida came in second place with a numeric gain at 211,196. Arizona was No. 3 at 98,330. In contrast, New York had the largest annual numeric population decline, decreasing by 319,020. New York’s declining population in the last year was attributed to negative domestic migration, the report said. California saw a numeric decline of 261,902 people. Illinois came in third place in largest numeric decline at 113,776.

Realtors® Raise Funds to Help Colorado Wildfire Victims The new year began in tragedy for households in Colorado, as wind-driven wildfires swept through numerous suburban neighborhoods and left homes and businesses in rubble and ash. About 991 homes were destroyed after the Marshall and Middle Fork fires blanketed the Denver suburbs and Boulder County, Joe Pelle, Boulder County Sheriff, told USA Today. An additional 127 homes were damaged by fire. Officials continue to assess the full extent of the damage. Most of the damage took place in just half a day, USA Today reports. Tens of thousands of Colorado residents were forced to flee their homes as the fires scorched about 6,000 acres. The wildfires erupted on Dec. 30 in and around Louisville and Superior, about 20 miles northwest of Denver. “New Year’s Eve is usually a time of celebration, but with more than 600 homes burned from the Marshall and Middle Fork Fires in Boulder County, our hearts are heavy this year,” the Denver Metro Association of Realtors® posted on its Facebook page on Dec. 31, 2021. “We hope that our members and their loved ones impacted by the devastation are safe.”

Salt Lake’s Top 10 Best Years in Home Sales More existing homes were sold in 2020 than any other year in Salt Lake County. Housing sales in 2021 were down about 8% year over year, but 2021 still ranked as the No. 8th best year in units sold in the county. The pre-recession years of 2005 and 2006 rounded out the top three highest sales years. Housing sales will continue to rise in 2022. A new report by the Kem C. Gardner Institute estimates that 160 new residents are moving to Utah every day. Nearly 60% of Utah’s population growth is now attributed to net migration. 8 | Salt Lake Realtor ® | January 2022

Realtors® are already making plans to help wildfire victims. On its Facebook page, the Colorado Association of Realtors® announced it is working with local and national association leaders to help raise and donate housing-related relief funds to those affected. The Colorado association said it will work with local associations and the National Association of Realtors® to provide additional resources and financial support to the victims in the coming days, including to any Realtors® who may have been affected by the wildfires.

We’re a national company with national strength, but we have local heart. That’s who we are. For 30 years we’ve been building homes Utahns want to live in, and many of us live in the communities we have built. Boyd Martin, Utah Division President

D.R. Horton is an Equal Housing Opportunity Builder. **D.R. Horton is America's largest new home builder by volume.

Rising Housing Prices: Two Sides of a Coin

The income required to buy the median-priced home in Salt Lake County has increased from $58,100 in 2015 to $101,400 in 2021. By James Wood Ivory-Boyer Senior Fellow at the Kem C. Gardner Policy Institute David Eccles School of Business at the University of Utah

ing Housing Prices: Two Sides of a Coin

income required to buy the median-priced home in Salt Lake County has increased from $58,100 015 to $101,400 in 2021.

ames Wood y-Boyer Senior Fellow at the Kem C. Gardner Policy Institute d Eccles School of Business at the University of Utah

or’s Note: This report was commissioned by the Salt Lake Board of Realtors®.

ah Housing Prices, Prone to Rapid Acceleration

2021 Utah housing market will be long remembered for its record-breaking price increases. ewide, housing pricesNote: increased 27%, shattering the 43-year-old record ofLake 20.1% set in 1978, set in 1978, Figure 1. Record price increases were not confined Editor’s Thisby report was commissioned by the Salt re 1. Record price increases were not confined to Wasatch Front counties; nearly every county in to Wasatch Front counties; nearly every county in the state Board of Realtors®. state saw record increases. Twenty-four of Utah’s 29 counties had double-digit gains. Undoubtedly, record increases. Twenty-four of Utah’s 29 counties had year is bound to become a historical reference point, much like the Great Recession—a pointsaw in time double-digit gains. Undoubtedly, the year is bound to become n housing prices went seriously awry. For the Great Recession, it's the historic plunge in prices, 15 I. Utah Housing Acceleration ecutive quarters of price declines,Prices, whereas Prone for 2021,to it'sRapid the historic price increase during the a historical reference point, much like the Great Recession—a ID-19 pandemic. point in time when housing prices went seriously awry. For the

The 2021 Utah housing market will be long remembered for Recession, it’s the historic plunge in prices, 15 consecutive itsinrecord-breaking price increases. Statewide,inhousing pricesIn 1994 andGreat he data show Figure 1, Utah is subject to a rapid acceleration housing prices. again quarters of price declines, whereas for 2021, it’s the historic price increased by 27%, shattering 43-year-old record 20.1% 006, the state led the country in housing pricethe increases, and in 1978 wasofnear the top state. In 2021, increase during the COVID-19 pandemic. h ranked second behind Idaho. Figure 1 As the data show in Figure 1, Utah is subject to a rapid Figure 1 Year-overYear-over Quarterly Percent Increase in Housing Price Index, Utah acceleration in housing prices. In 1994 and again in 2006, the Quarterly Percent Increase in Housing Price Index, Utah (all(alltransactions) transactions) state led the country in housing price increases, and in 1978 was near the top state. In 2021, Utah ranked second behind Idaho.

30.0%

27.0%

25.0% 20.0%

20.1%

18.0%

16.8%

15.0% 10.0% 5.0% 0.0% -5.0% -10.0%

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

-15.0%

Source: Federal Housing Finance Agency.

10 | Salt Lake Realtor ® | January 2022

Not surprisingly, housing price increases in the Salt Lake Metropolitan Area (Salt Lake and Tooele counties), also rank among the highest of all major metropolitan areas. The Federal Housing Finance Agency tracks prices in the 100 largest metropolitan areas in the country. From 1991 to the third quarter of 2021 prices in the Salt Lake Metropolitan Area have increased by 601.9%, second behind Austin (614.5%) and ahead of third ranked Boise (587%), Table 1. Over the past five years, Salt Lake Metropolitan Area, also ranks second with an increase in prices of 84.6% The National Association of Realtors’ data provides quarterly estimates of the median-priced home for 183 metropolitan areas. In 2007 Q1, Salt Lake ranked 53rd among all the

Not surprisingly, housing price increases in the Salt Lake Metropolitan Area (Salt Lake and Tooele counties), also rank among the highest of all major metropolitan areas. The Federal Housing Finance Agency tracks prices in the 100 largest metropolitan areas in the country. From 1991 to the third quarter of 2021 prices in the Salt Lake Metropolitan Area have increased by 601.9%, second behind Austin (614.5%) and ahead of third ranked Boise (587%), Table 1. Over the past five years, Salt Lake metropolitan areas, butwith byinan2021 due ofto84.6% the acceleration Metropolitan Area, also ranks second increase in prices Not surprisingly, housing price increases the Salt Q3, Lake Metropolitan Arearapid (Salt Lake and Tooele

counties), also rank highestranks of all major The Federal Housing of prices, Saltamong Lakethenow 24thmetropolitan Table 2. areas. Housing prices inFinance the Agency tracks prices inofthe 100 largest areas in estimates the country. 1991 to the third quarter The National Association Realtors' datametropolitan provides quarterly ofFrom the median-priced home for rd Salt Lake Metropolitan Area are higher than 87% of all major of 2021 prices in the Salt Lake Metropolitan Area have increased by 601.9%, second behind Austin 183 metropolitan areas. In 2007 Q1, Salt Lake ranked 53 among all the metropolitan areas, but by 2021 th past five years, Salt Lake (614.5%) and ahead of third ranked Boise (587%), Table 1. Over the Q3, due to the rapid acceleration of prices, Salt Lake now ranks 24 Table 2. Housing prices in the Salt metropolitan areas.second with an increase prices of 84.6% Lake Metropolitan MetropolitanArea, Areaalso are ranks higher than 87% of all majorinmetropolitan areas.

Table 1

The National Association of Realtors' data provides quarterly estimates of the median-priced home for Table 1 rd 183Percent metropolitan areas. In 2007 Q1, Salt LakePrices ranked 53in among all the metropolitan areas, but by 2021 Change in Housing Major Metropolitan Areas Percent Change in Housing Prices in Major Metropolitan Areas Q3, due to the rapid acceleration of prices, Salt Lake now ranks 24th Table 2. Housing prices in the Salt (100 Metropolitan Areas) (100 Metropolitan Areas) Lake Metropolitan Area are higher than 87% of all major metropolitan areas.

jonbilous©/ Adobe Stock

an obvious exception to this textbook theory of wealth creation. In 2021 Utah’s 700,000 homeowners realized an increase in the home equity (wealth) of at least $82 billion, Table 3. Wealth was created not by developing a new product or learning a new skill but rather by simply paying the monthly mortgage. In contrast, the 300,000 renter households in Utah had no increase in wealth and faced double-digit increases in rents. Table 3 Table 3 Windfall of Wealth: Increase in Value of Windfall of Wealth: Increase in Value of Owner Occupied Utah, Owner Occupied Units Units inin Utah, 20212021

Rank Table 1 Salt Lake Metropolitan PercentPrices Change 100 Metro Areas Percent Area Change in Housing in Major Metropolitan Areas US Change (100 Metropolitan Areas)2nd to Austin 1991 to 2021 3Q 601.9% 246.9% Last 5 years 84.6% 2nd to Boise 51.9% Rank 3Q 3Q 2021 Area 28.1% 6th Areas 18.5% 100 Metro Salt2020 Lake to Metropolitan Percent Change US Change Source: Federal Housing Finance Agency. nd

Total Value of Owner-Occupied Average Units Year Price (billion) 2020 $438,792 $307.2 2021 $556,146 $389.3 Increase 26.90% $82.1 Source: Derived from UtahRealEstate.com data. Source: Derived from UtahRealEstate.com data.

1991 to 2021 3Q 601.9% 2 to Austin 246.9% Last 5 years 84.6% 2nd to Boise 51.9% Table 2 Table 2 Compared 6th 3Q 2020 toin 3QSalt 2021 28.1% 18.5% Areas Median Home Price Lake Metropolitan Area to Other Metropolitan Source: Federal Housing Finance (183Agency. Metropolitan Areas)

Median Home Price in Salt Lake Metropolitan Area Table 2 Compared to Other Metropolitan Areas Compared Median Home Price in Salt Lake Metropolitan Area Compared to Other Metropolitan Areas Median Sales to US (183 Metropolitan Areas) US Median (183 Metropolitan Areas) Price $212,300 $363,700

Median

Compared 97.5% to US 137.5% III. Median Is the Increase in Housing Prices Slowing Down? There's no sign yet, of a slowdown. For the past nine months, prices have consistently increased at over 97.5% 20%, when compared to the same month a year early. In December, prices were up 24.3%, just slightly 137.5%

III. Is the Increase in Housing Prices Slowing Down?

below the largest gain of sign 26.7%yet, in June, 2. There’s no of aFigure slowdown. For the past nine months,

Wealth in a capitalist economy is created by innovation (creating new products) and learning (a deepening human capital). That is, in most cases. Owning real estate in a high-growth market is an II. Housing Prices and the Windfall of Wealth obvious exception to this textbook theory of wealth creation. In 2021 Utah’s 700,000 homeowners Wealth in a capitalist economy is created by innovation (creating new products) and learning (a realized an increase in capital). the home equity (wealth) of Owning at leastreal $82estate billion, 3. Wealth was created not deepening human That is, in most cases. in Table a high-growth market is an by developing a new or learning a new skillisbut rather In by2021 simply paying the monthly mortgage. Wealth in aproduct capitalist economy created by innovation (creating obvious exception to this textbook theory of wealth creation. Utah’s 700,000 homeowners In contrast, 300,000inrenter households in Utahofhad no increase in wealth faced double-digit realizedthe an increase the home equity (wealth) at least $82 billion, Table 3.and Wealth was created not new products) and learning (a deepening human capital). That increases in rents. by developing a new product or learning a new skill but rather by simply paying the monthly mortgage.

II. Housing Prices and the Windfall of Wealth

In the 300,000 households in Utah had noinincrease in wealth and faced double-digit is,contrast, in most cases.renter Owning real estate a high-growth market is increases in rents.

prices have consistently increased Figure at 2 over 20%, when compared to Year-over the same month a year early. In December, prices up Monthly Percent Change in Median Sales Price, Saltwere Lake County (Year-over 24.3%, just slightly below the Monthly largest Increase) gain of 26.7% in June, Figure 2. 30.0% 25.0% 20.0%

January 2022 | Salt Lake Realtor ® | 11

24.3%

Rank 53rd 24th

Price $212,300 US Median $363,700

26.5%

First Quarter 2007 $206,900 Third Quarter 2021 $500,000 II. Housing andAssociation the Windfall of Wealth Source:Prices National of Realtors.

Rank 53rd 24th

26.7%

Price Salt Lake Metropolitan Area First Quarter 2007 $206,900 Median Sales Third Quarter 2021 $500,000 Salt Lake Metropolitan Area Price Source: National Association of Realtors.

Owner-Occupied Units Average (billion) Price Year 2020 $438,792 $307.2 2021 $556,146 $389.3 Increase 26.90% $82.1 Source: Derived from UtahRealEstate.com data.

least back to World War II, confirms the market has experienced only one housing bubble, despite nation-leading price spikes in 1994 and 2006. Every period of price decline, whether brief or prolong from the 1950s to 2008–2011 has been associated with a weak or contracting labor market. From th historical data, it appears that a housing bubble, with its extended price decline, must be associated with a substantial loss in jobs. For Utah to experience a housing bubble in the near term it would req a loss of jobs, an unlikely prospect in the next few years.i

Furthermore, Utah's only housing bubble occurred during the first U.S. financial crisis since the Grea I. Is the Increase in Housing Prices Slowing Down? Depression. Financial here's no sign yet, of a slowdown. For the past nine months, prices have consistently increased at over crises are much rarer, more serious, and destructive than recessions. The 2008 financial was precipitated, in large part, by loosened banking regulations, reckless lending prac 0%, when compared to the same month a year early. In December, prices were up 24.3%, crisis just slightly (subprime loans), and risky financial innovations (mortgage-backed securities and collateralized deb elow the largest gain of 26.7% in June, Figure 2.

25.0%

24.3%

26.5%

26.7%

obligations), all By of which ledmost to a dangerously leveraged global financial market. far, the likely outcome for housing prices in Utah These over conditions we Figure 2 Figure 2 not present in 2021. the next two to three years is a period of price moderation Year-over Monthly Percent Change in Year-over Monthly Percent Change in Median Sales Price, Salt Lake County similar to what occurred after price accelerations in the late Median(Year-over Sales Price, Salt Lake County Monthly Increase) By far, the most likely outcome for housing prices in Utah over the next two to three years is a perio 1970s and seeprice yellow lines in Figure An1970s and the mid-19 (Year-over Monthly Increase) price moderation similar to the whatmid-1990s; occurred after accelerations in the 3. late of price declines created bycreated a bursting bubblebubble is see yellow linesextended in Figure 3.period An extended period of price declines by a bursting is ver 30.0% very unlikely. unlikely.

Figure 3 Figure 3 Percent Change in Housing Prices in Utah Percent Change in Housing Prices in Utah (year-over) (year-over)

20.0% 15.0%

25.0%

10.0%

20.0%

November

September

July

May

March

21-Jan

November

July

September

May

March

20-Jan

November

July

September

10.0%

May

0.0%

March

15.0% 19-Jan

5.0%

Source: UtahRealEstate.com Source: UtahRealEstate.com

IV.Have Does UtahBubble? Have a Housing Bubble? V. Does Utah a Housing

5.0% 0.0% -5.0% -10.0%

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

n the aftermath of the Great Recession, prices fell byhousing 15.6%. Thisprices is the only instance in the past In the aftermath of the housing Great Recession, fell by 5 years of housing history when price declines lasted more than a few consecutive quarters. There -15.0% 15.6%. This is the only in the past 75 years housing were two single-year declines during theinstance 1950s, a single-year decline in the of 1960s, and a few history in when declinesBut lasted more than a few consecutive onsecutive quarters 1983 price and 1987–1988. the rare occurrence of falling prices over an extended Source: Federal Housing Finance AgencyFinance Agency. Source: Federal Housing eriod (2008–2011), theThere bursting of Utah’s housing bubble, set the stagethe for a1950s, long period quarters. were two only single-year declines during a of price

single-year decline in the 1960s, and a few consecutive quarters in 1983 and 1987–1988. But the rare occurrence of falling prices over an extended period (2008–2011), the bursting of Utah’s only housing bubble, set the stage for a long period of price acceleration. Certainly, the first few years of the current acceleration were a recouping of falling prices during the Great Recession and its aftermath. Have the nine years of rising prices created the potential for a housing bubble? Utah’s housing past, at least back to World War II, confirms the market has experienced only one housing bubble, despite nation-leading price spikes in 1994 and 2006. Every period of price decline, whether brief or prolonged, from the 1950s to 2008–2011 has been associated with a weak or contracting labor market. From the historical data, it appears that a housing bubble, with its extended price decline, must be associated with a substantial loss in jobs. For Utah to experience a housing bubble in the near term it would require a loss of jobs, an unlikely prospect in the next few years. Furthermore, Utah’s only housing bubble occurred during the first U.S. financial crisis since the Great Depression. Financial crises are much rarer, more serious, and destructive than recessions. The 2008 financial crisis was precipitated, in large part, by loosened banking regulations, reckless lending practices (subprime loans), and risky financial innovations (mortgagebacked securities and collateralized debt obligations), all of which led to a dangerously leveraged global financial market. These conditions were not present in 2021. 12 | Salt Lake Realtor ® | January 2022

V. Homeownership Prospects for Future Generations Utah is the only state since 1900 where the homeownership rate has never fallen below 60%. The homeownership rate is the percent of occupied housing units that are owner-occupied. While the relentless rise in housing prices doesn’t yet threaten this distinction, homeownership rates for future generations, given the dire trajectory of housing prices, are in jeopardy, as illustrated in Figure 4 In the third quarter of 2015, the median sales price of a singlefamily home was $280,000. The mortgage payment for this home was $1,743. By 2021, the home price had increased to $550,000, and the mortgage payment jumped to $3,043, a 75% increase in six years, despite the drop in mortgage interest rates from 3.94% to 2.87%. The rising housing costs overwhelm the advantage of lower interest rates. Assuming a debt-to-income ratio of 36%, the income required to buy the median-priced home increases from $58,100 in 2015 to $101,400 in 2021. Consequently, a growing share of renters and first-time buyers are priced out of homeownership, and the demand for rental housing increases. The high cost of homeownership is contributing to the biggest apartment boom in the county’s history and an increased share of renter households. In 2020, 34.3% of all occupied housing units in the county were renter households, Table 4.

n the third quarter of 2015, the median sales price of a single-family home was $280,000. The mortgage payment for this home was $1,743. By 2021, the home price had increased to $550,000, and the mortgage payment jumped to $3,043, a 75% increase in six years, despite the drop in mortgage interest ates from 3.94% to 2.87%. The rising housing costs overwhelm the advantage of lower interest rates.

Assuming a debt-to-income ratio of 36%, the income required to buy the median-priced home increases rom $58,100 in 2015 to $101,400 in 2021. Consequently, a growing share of renters and first-time buyers are priced out of homeownership, and the demand for rental housing increases. The high cost of homeownership is contributing to the biggest apartment boom in the county's history and an increased hare of renter households. In 2020, 34.3% of all occupied housing units in the county were renter households, Table 4.

Figure 4 Figure 4 Monthly Mortgage Payment for Median Priced Monthly Mortgage Payment for Median Priced HomeHome in Salt Lake County, 2015 2021* in Salt Lake County, 2015and and 2021* $3,043

$4,000 $3,500

P&I

Taxes

PMI

Table 4 The Share of Owner and Renter Occupied Units Table 4 Salt Lake County The Share of Ownerin and Renter Occupied Units in Salt Lake County Category 2000 Total Housing Units 311,000 Total Occupied 295,150 Owner Occupied 203,600 Renter Occupied 91,550 Percent Share of Renter Households of Occupied Units 31.0% Source: U.S. Census Bureau and Kem Gardner Policy Institute.

2010 365,000 338,925 229,450 109,475 32.3%

2020 433,300 424,600 279,117 145,480 34.3%

VI. High Prices Boost Real Estate Commissions Since 2015, residential real estate sales in Salt Lake County have been relatively stable, fluctuating within a range of 17,000 to 19,000 annual sales (single-family, condominium, townhome, twin home) Table 5. Although sales have been stable, the growth in commissions has been spectacular, driven Since residential salesthe incommissions Salt Lakegenerated Countybyhave primarily by the2015, rising value of homes. real In theestate past six years, the sale of residential realrelatively estate have nearly doubled, increasingwithin from $246.6 million in to $480.8 been stable, fluctuating a range of2015 17,000 to million in 2021, Table 6.

VI. High Prices Boost Real Estate Commissions

$67

$500

$445

$163

$1,000

$226

$1,500

$321

$2,000

$1,287

$2,500

$1,743

$2,211

$3,000

Insurance

Mortgage Pmt

19,000 annual sales (single-family, condominium, townhome, twin home) Table 5. Although Table sales5 have been stable, the growth *Mortgage payments assume a 3% down payment, taxes at .007% of the Real Estate Sales in driven Salt Lake County in commissionsResidential has been spectacular, primarily by the *Mortgage payments assume a 3% down payment, taxes at .007% of the value of the home, private (single-family, condominium, twin home, townhome) value of the home, private mortgage insurance (PMI) at 1% of the value of mortgage insurance (PMI) at 1% of the value of the home, home insurance of $800 annually, and rising value of homes. In the past six years, the commissions the mortgage home, home insurance of $800 annually, mortgage interest rate of of 2020 as interest rate of 3.95% in the third quarterand of 2015 and 2.95% in the third quarter generated by the sale ofYear residentialSales real estate have nearly reported Freddie Mac. The value of a home substantially increases the cost of PMI and 3.94% in thebythird quarter ofincreased 2015 and 2.87% in the third quarter of 2021 2015 property taxes, which are based on home value. doubled, increasing from $246.6 million17,268 in 2015 to $480.8 million as reported by Freddie Mac. The increased value of a home substantially Source: Derived from UtahRealEstate.com data by James Wood. 2016 18,013 increases the cost of PMI and property taxes, which are based on home value. in 2021, Table 6. 2017 17,944 2015

2021

Source: Derived from UtahRealEstate.com data by James Wood.

2018 18,077 2019 18,010 2020 19,039 2021 17,655 Source: UtahRealEstate.com

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Owner Occupied 203,600 Renter Occupied 91,550 Percent Share of Renter Households of Occupied Units 31.0% Source: U.S. Census Bureau and Kem Gardner Policy Institute.

229,450 109,475 32.3%

279,117 145,480 34.3%

High Prices Boost Real Estate Commissions ce 2015, residential real estate sales in Salt Lake County have been relatively stable, fluctuating hin a range of 17,000 to 19,000 annual sales (single-family, condominium, townhome, twin home) ble 5. Although sales have been stable, the growth in commissions has been spectacular, driven marily by the rising value of homes. In the past six years, the commissions generated by the sale of idential real estate have nearly doubled, increasing from $246.6 million in 2015 to $480.8 million in 21, Table 6.

Table 5 Table 5 in Salt Lake County Residential Real Estate Sales Residential Real Estate Sales in Salt Lake County (single-family, condominium, twin home, townhome) (single-family, condominium, twin home, townhome) Year Sales 2015 17,268 2016 18,013 2017 17,944 2018 18,077 2019 18,010 2020 19,039 2021 17,655 Source: UtahRealEstate.com

Table 6 Residential Real Estate Commission, Salt Lake County

Commissions* (millions) Year 2015 $246.6 2016 $274.4 jonbilous©/ Adobe Stock 2017 $302.2 2018 $329.8 VII. Forecast for 2022 2019 $352.8 High prices, likely interest rates increases, listing shortages, and 2020 $416.2 a lower rate of job growth will combine to hold sales in Salt Lake 2021 $480.8 County to aroundIncrease 17,000 2015-2021 units in 2022. Although $234.2mortgage rates *Assumes average will of 5% are expected to rise, the increase becommission. modest. The average Source: Derived from of seven organization, rate for 2022, based on the forecasts UtahRealEstate.com data.

is 3.55% Table 7. The price momentum will trend lower, but

VII. Forecast another for 2022 year of double-digit increase is likely, count on a 10% to 12% increase, which will produce an additional in will comb High prices, likely interest rates increases, listing shortages, and a lower $50 rate million of job growth to hold sales commissions. in Salt Lake County to around unitsof in the 2022.price Although And finally,17,000 two sides coin;mortgage existingrates are expect to rise, the increase will be modest. The average forstrong 2022, based the forecasts homeowners will benefit againrate from priceonincreases, butof seven organization, is 3.55% Table 7. The price momentum will trend lower, but another year of double-dig homeownership for future generations will become less likely, increase is likely, count on a 10% to 12% increase, which will produce an additional $50 million in wealth for commissions.producing And finally,greater two sidesinequality of the priceand coin;diminished existing homeowners willthese benefit again from households. strong price increases, but homeownership for future generations will become less likely, producing greater inequality and diminished wealth for these households.

Table 6 Table 6 Residential Real Estate Salt Lake County Residential Real EstateCommission, Commission, Salt Lake County Commissions* Year (millions) 2015 $246.6 2016 $274.4 2017 $302.2 2018 $329.8 2019 $352.8 2020 $416.2 2021 $480.8 Increase 2015-2021 $234.2 *Assumes average of 5% commission. Source: Derived from UtahRealEstate.com data.

Table Table77 Mortgage Interest Forecast Mortgage InterestRate Rate Forecast Organization Freddie Mac Mortgage Bankers Association Bankrate National Association of Realtors Corelogic Realtor.com Fannie Mae National Home Builders Average Source: Organization websites.

Rate 3.5% 4.0% 3.5% 3.7% 3.4% 3.6% 3.3% 3.45% 3.55%

I. Forecast for 2022 gh prices, likely interest rates increases, listing shortages, and a lower rate of job growth will combine hold sales in Salt Lake County to around 17,000 units in 2022. Although mortgage rates are expected rise, the increase will be modest. The average rate for 2022, based on the forecasts of seven ganization, is 3.55% Table 7. The price momentum will trend lower, but another year of double-digit crease is likely, count on a 10% to 12% increase, which will produce an additional $50 million in mmissions. And finally, two sides of the price coin; existing homeowners will benefit again from ong price increases, but homeownership for future generations will become less likely, producing eater inequality and diminished wealth for these households. Table 7 Mortgage Interest Rate Forecast Organization Freddie Mac Mortgage Bankers Association Bankrate National Association of Realtors Corelogic Realtor.com Fannie Mae National Home Builders Average Source: Organization websites.

Rate 3.5% 4.0% 3.5% 3.7% 3.4% 3.6% 3.3% 3.45% 3.55%

14 | Salt Lake Realtor | January 2022 ®

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Steve Perry

2022 President Salt Lake Board of Realtors®

Photos: Dave Anderton

18 | Salt Lake Realtor ® | January 2022

Your background includes the military and mayor of a city. How did you choose a career in real estate?

What advice do you offer new agents starting in the profession?

I was also in law enforcement for 11 years. I chose real estate to continue to help people and make a difference in their lives. I wanted to be involved in the community still. Real estate was a great way to do that.

My advice to new agents is to find a brokerage that works for them. I would recommend one that would provide a mentor for them to hold their hand and teach them how to properly execute contracts and one that is very education heavy.

What are your goals as president of the association in 2022? My theme for the year is Raising the Bar. I want to help improve professionalism within our board. Realtors® should be the experts when it comes to writing contracts, understanding market values, and helping their clients. By taking CE education courses and brokers training their agents we can all rise together. Utah was the second fastest growing state in 2021 when measured by percent growth. What role do Realtors® play in making the dream of homeownership possible? Realtors® play a vital role in homeownership. With the changing economy, the complexities of buying and selling a home has never been more difficult. There are so many legal aspects that need to be looked at and performed in a proper manner to avoid the risk and pitfalls that can happen when buying or selling without a Realtor®.

What qualities make a successful Realtor®? I find that the most successful Realtors® are ones that will go out of their comfort zone to meet new people and that will market themselves properly so that they’re not secret agents. When you are not selling real estate, what do you do for fun? I love to play sports with my children Such as pickleball, spike ball, and crossnet. We also love to go hiking in our beautiful mountains. What does 2022 hold for the Wasatch Front real estate market? This market and economy will continue to be the same as it has been the last year. Home values will increase about 7% To 9% . There is still a shortage of homes in our market. First-time home buyers will continue to struggle with the higher prices. Homeowners can look to utilize their equity to purchase investment properties. January 2022 | Salt Lake Realtor ® | 19

Photo Credit: Casey Halliday/Windermere Real Estate

13 Home Trends Stealing the Spotlight in 2022 While buyers are still seeking homes that offer safe, enjoyable shelter, new wish list items are emerging that give houses better design and function. By Barbara Ballinger Home design trends that are expected to loom large in 2022 are an evolution of what started during the pandemic when life was disrupted and more homeowners started reevaluating their surroundings. Cases in point: the rise of the home office and backyard pools. Some hot trends started years earlier, including energy efficiency, conservation of natural resources (especially in fire- and hurricane-ravaged areas), and affordable housing. In addition, each cohort has its own wish list—baby boomers want lower maintenance and millennials want strong broadband connectivity. 20 | Salt Lake Realtor ® | January 2022

One caveat: Know that there’s no universal agreement about what’s in and what’s out, even among our pundits who offered these ideas. 1. High-Speed Internet and Broadband: A home office or workspace remains essential for many home buyers, but if a house doesn’t have a good digital infrastructure, work-from-home buyers may not be interested, said associate broker Lori Hoffman with the Usha Subramaniam Team at Compass in Chappaqua, a suburb of New York. “Young buyers coming from urban areas expect it, yet it’s not always available,” she said. Her advice is to make sure high speed is available for

your buyers, and if it’s not, find an alternative before they invest.

lounge or parlor—that includes club chairs and a bar, but no TV.

2. Quality, Quality, Quality: Location may still be king, but buyers want quality in building materials, systems, and appliances since they know how hard it is to secure materials due to supply chain disruptions and find a contractor who’s available and can get the work done right. “They don’t want inexpensive gray and white vanities with a composition top. They prefer something like a dark navy or sleek modern dark wood with a thick porcelain top, something that echoes Mid-Century style,” Hoffman said. They also want personalized items that suggest quality, such as a kitchen island that resembles a piece of furniture, said J.T. Norman, business development, product, and design innovation specialist at Kitchen Magic in Nazareth, Pa. Buyers also prefer that original brick is left unpainted but given trim that’s accented with a dark color, said architect Eddie Maestri, founder of Maestri Studio in Dallas.

4. Purple is the New Gray (or Black): Once considered the color of royalty, purple has become one of the “reigning” requests in the increasingly colorful world of home design, said Scottsdale, Ariz.–based designer Julia Buckingham of Julia Buckingham Interiors. “It’s a jewel tone that is both rich and neutral as a base for bright or more earthy hues.”

3. An Encore for Home Theaters, and a Welcoming to Yoga Studios and Sophisticated Lounges: After losing appeal because they took up too much space, home theaters are popular again as homeowners seek more at-home entertainment. Most are constructed on the first floor or lower level, said designer Joe Fava, CEO of Fava Design Group in Miami. A newcomer to the trends list is a yoga studio as homeowners look for ways to unwind and stay fit at home, he said. Maestri also has received more requests for an intimate living space—what he terms a

In one project, she mixed it with a lively red and a natural stone chandelier. “It plays well with both vintage and modern, which makes my ‘Modernique’ heart very happy,” she said. Norman said an earthy khaki green is also a current favorite choice. Color expert Amy Wax of Your Color Source predicts the popular colors in 2022 will relate to nature. She anticipates softer greens, earthy taupes, warm browns, and off-whites. We may also see a nod to happier times and a carefree lifestyle in the form of brighter teals, Kelly greens, peaches, and oranges. 5. More Outdoor Changes: Having a yard or balcony gained ground during the pandemic and remains a big draw for buyers. As homeowners spent more time outdoors, their wish list for that space evolved. Hoffman finds that buyers want a flat yard that’s more usable than a hilly one. More people want a pool, so much so that many installers are booked into next year. Huntsville, Utah–based landscape architect Laurie Van

22 | Salt Lake Realtor ® | January 2022

Zandt of The Ardent Gardener said she usually designs one or two a year, but in 2021 she designed eight. A fire pit is also still high on wish lists, but an elaborate outdoor kitchen with a pizza oven and beer tap has waned in popularity—many found they rarely use these bells and whistles. What’s needed is a good 42-inch grill and cabinetry, said Chicago kitchen designer Mick De Giulio of de Giulio Kitchen Design.

spaces to indoors, more homeowners are replacing windows with movable glass walls, said Norman.

When it comes to furnishings, Van Zandt said several clients have asked for nostalgic items that remind them of their grandparents, such as a porch swing, or have wanted to reflect their heritage through plant choices, colors, or design items. They also favored less-manicured gardens and yards with native grass seed blends.

7. First-Floor Bedroom: Yes or No? Some experts say a house without a first-level bedroom is challenged. Not so, said Hoffman, who said it depends on who’s sleeping there. “It’s more important to boomers. My younger buyers considering a two-story home want all the bedrooms to be together on the upper level,” she said.

Greenwich, Conn.–based landscape architect Janice Parker said she has started incorporating lighting that looks like it comes from a natural source, such as candles. In climates where bugs are prevalent or homeowners want to extend their outdoor enjoyment, there’s greater interest in screened porches, said home staging expert Kristie Barnett of Nashville-based The Decorologist. To connect outdoor or quasi-outdoor 24 | Salt Lake Realtor ® | January 2022

6. Mid-Century Modern + Contemporary Chic: Design styles vary, but there’s agreement that a house with Mid-Century Modern architectural details and home furnishings stay a favorite, followed closely by contemporary, so long as the latter is warm and inviting rather than cold and spare, said Fava.

8. Open Plan Living? Yes, But … While there’s no single plan that appeals universally, Hoffman finds that most of her buyers still want an open concept plan. “A choppy plan with rooms broken up takes longer to sell, and the kitchen has to open to some sort of family room. However, the dining room can be its own room,” she said. When there’s a separate traditional living room, she finds her buyers ask, “What do I do with this room?” Others say the openness between rooms is closing a

bit. “Homeowners still want sight lines from a kitchen to family room, but they no longer need rooms in a row and prefer some separation, maybe, with pocket doors or an island,” said Maestri. 9. Maximalism: The minimalism of the last few years is fading, while maximalism is soaring. What that means is rooms are being filled with comfortable furnishings, rugs, art, and collections with character, according to Laurel Vernazza, home design expert at The Plan Collection, a company that sells house plan designs. The fresh look doesn’t mean crowded, overstuffed spaces. One way to achieve the look is by mixing materials, like stones, metals (lots of bronze and less polished chrome and brushed nickel of recent years), fabrics with a nubby feel, different woods, and trendy matte black hues. “It’s a way to add richness,” said Fava, who finds clients want cocktail tables with several metal finishes or sofas with a metallic base. Another way to inject the look is to use curved elements instead of straight lines, such as arched openings, barrel-vaulted ceilings, and curvy furniture and walkways, said Vernazza. There’s also more architectural detail like fluting, Maestri said. 10. Spotlight on Ceilings: Periodically, the fifth wall of a room gains prominence. Now is one of those moments. The ceiling is being designed to stand out and be more attractive. Dated ceilings, such as those with the popcorn look, textured Styrofoam, or bumpy stucco are being targeted by homeowners for remodeling. Ted Speers, president of The Patch Boys, a national drywall, ceiling, and plaster repair franchise, suggested owners first test for asbestos, then scrape off the texture, repair the ceiling with drywall compound, and sand. In upper-level rooms, designers like Buckingham make lighting fixtures the focal point of a ceiling or stairwell to create a modern art display that adds height, volume, and a light play when lit. But the caveat, she said, is that it can be a “beast to navigate the correct proportions and heights.” That’s where an interior designer can help. What’s out, she said, are small, mass-produced, lantern fixtures in an industrial or farmhouse style. Maestri likes to use high-gloss paint for reflectivity or wallpaper. 11. Smaller, But Not Tiny: Ever since author and architect Sarah Susanka published her first book on smaller homes in 1998, The Not So Big House, there’s been interest in how smaller homes can offer comfortable, functional living. Author Sherri Koones’ book, Bigger than Tiny, Smaller than Average, also explores the subject. Smaller houses—2,000 square feet or less— are in high demand but short supply. The reasons for their popularity, Koones said, are that people are getting married later and having fewer children, while boomers are opting for smaller homes. Certain features help spaces look larger and function better, such as integrated outdoor areas, high ceilings, light-colored walls, open floor plans, well-placed windows, and niches and hallways that serve as workspaces.

26 | Salt Lake Realtor ® | January 2022

12. All-Electric Homes: More homeowners understand the importance of “decarbonizing” everything from products to transportation, and especially their homes, said Chicago- and Boulder, Colo.-based architect Nate Kipnis of Kipnis Architecture + Planning. “The way we can best do this is by eliminating all fossil fuels use from houses and including induction cooktops rather than gas for cooking, which offers safer, faster, and more even cooking,” he said. Kipnis recommends using either an air-source heat pump (mini-split) for the HVAC system or a ground source system (geothermal). The big payoff, he said, is that renewable energy has become the cheapest form of electricity generation. 13. Multifamily Breakout Spaces: The pandemic taught developers and managers of multifamily buildings the importance of flexible shared spaces for socializing and work, termed breakout rooms by some. All the buildings that Keith Gillan’s Maryland-based firm Murn Management runs include such spaces for shared use, plus smaller conference rooms on each residential level. Another change in his company’s buildings is bigger residential units to facilitate working from home. “It’s not that much more expensive to do so at the beginning of the design process and be sure every apartment has a den,” Gillan said. Bonus Trend: New Model for Affordable Multifamily Living In urban centers, affordable housing is in great demand, yet there are often obstacles to developing it. A new zoning rule in New York is giving rise to a new way to bring affordable units to underserved neighborhoods— it’s termed “transgenerational housing.” An early example of this growing trend now occupies the corner of 700 Manida St. in the Bronx’s Hunts Point neighborhood. Designed by RKTB Architects for nonprofits MHANY Management and Nos Quedamos, Phoenix Estates II is one of the first developments to employ the Affordable Independent Residences for Seniors program, a modification of Zoning for Quality and Affordability rules that the city adopted in 2016. “Utilizing the new rule made the project financially feasible by including senior units in the development plan, which increased the amount of developable floor area allowed on the site by 45%,” said RKTB principal Alex Brito, lead architect on the project. Of the 108 studios and 1-, 2-, and 3-bedroom units, 100% are affordable and 48 studios and one 1-bedroom unit are reserved for seniors. The programming for Phoenix Estates II also commingles seniors and families rather than group them separately. The result fosters a sense of community and a more stable and positive living environment for all. The project team’s success in leveraging an obscure zoning rule is inspiring other designers and nonprofit developers to follow. Barbara Ballinger is a freelance writer and the author of several books on real estate, architecture, and remodeling, including The Kitchen Bible: Designing the Perfect Culinary Space (Images Publishing, 2014).

NOVEMBER

HOUSING WATCH Six Months of Falling Home Sales

Salt Lake home sales fell 11% in November year over year, marking the sixth consecutive month of declining sales year over year. From January through November, home sales were down 7% compared to the same 11-month period in 2020. Despite the decline, 2021 was on track to being the eighth best year in overall housing units sold in Salt Lake County. While sales fell, home prices increased. The median price of all housing types sold in November climbed to $487,000, up 26% compared to a median price of $387,750 a year earlier. Nationally, Utah ranks second in the highest percent change in house prices in the third quarter of 2021, according to FHFA. The report noted that Utah house prices increased by 30% in the one-year period that ended on Sept. 30. Idaho had the biggest percent change in house prices in the nation, with prices soaring 36%. Nationally, home prices are up 18%. The inventory of homes in Salt Lake County continues to dwindle. There were just 1,043 homes for sale in November, down 16% from 1,244 homes in November 2020. New listings in November totaled 1,249, down 3% from 1,283 new listings a year ago. Nationally, home sales were down 2% in November year over year. “Determined buyers were able to land housing before mortgage rates rise further in the coming months,” said Lawrence Yun, NAR’s chief economist. “Locking in a constant and firm mortgage payment motivated many consumers who grew weary of escalating rents over the last year. Mortgage rates are projected to jump in 2022, however, I don’t expect the imminent increase to be overly dramatic.” Yun forecasted the 30-year fixed mortgage rate to average at 3.7% by year-end of 2022. The median existing-home price for all U.S. housing types in November was $353,900, up 13.9% from November 2020 ($310,800), as prices increased in each region, with the highest pace of appreciation in the South region. This marks 117 straight months of year-over-year increases, the longest-running streak on record. “Supply-chain disruptions for building new homes and labor shortages have hindered bringing more inventory to the market,” said Yun. “Therefore, housing prices continue to march higher due to the near record-low supply levels.” Yun noted that inflation and the pace of price appreciation is expected to subside next year. Last week, NAR held its third annual Real Estate Forecast Summit, featuring economists and housing experts whose consensus found inflation would likely ease in 2022 at a 4% rate, while home prices are expected to rise at a moderate pace of 5.7%. First-time buyers were responsible for 26% of sales in November, down from 29% in October and from 32% in November 2020. NAR’s 2021 Profile of Home Buyers and Sellers – released in November – reported that the annual share of first-time buyers was 34%.

28 | Salt Lake Realtor ® | January 2022

January 2022 | Salt Lake Realtor ® | 29

How Jobs, Inflation May Influence Borrowing Costs About four in 10 workers say they’d look for a new job if their employer makes them come into the office five days a week. There are nearly 11 million job openings in the U.S., a near-record high level. The real estate industry is closely watching the so-called “Great Resignation,” a movement that started with the pandemic in which people are leaving the workforce in historically higher numbers. As more Americans quit their jobs, will they set out for greener pastures by moving to a new location? The trend is only growing: In November, 4.5 million Americans left their jobs, pushing the nation’s resignation rate to a record high of 3%, MarketWatch reports. Some of the resignations have come as employers look to bring their workers back to the office after more than a year of remote work. About four in 10 workers say they’d look for a new job if their employer makes them come into the office five days a week, according to a survey of more than 2,300 people by University of Chicago researchers. “Help wanted” signs seem to be everywhere, as there are 10.6 million job openings. That is much higher than the figures for unemployed Americans in search of a job, at 6.3 million,” said Lawrence Yun, chief economist at the National Association of Realtors®. “The wage rate is showing an accelerating trend, with a 6% annualized gain in the fourth quarter of last year, up from 5% in the third quarter and 2% to 3% before the onset of the pandemic. Higher wages could feed into 30 | Salt Lake Realtor ® | January 2022

higher consumer price inflation, which, in turn, will lead to higher mortgage rates because lenders need to compensate for the loss in value of the purchasing power of money.” More Americans may be feeling less tethered to a certain location. About 41% of employed Americans say they’d be willing to take a pay cut or accept a new job with a lower salary to move to a more affordable location, according to the latest consumer survey from Coldwell Banker. Younger people appear more willing to move than older workers: The Coldwell Banker survey found that respondents ages 18 to 44 are more likely than those ages 45 to 54 to be willing to accept a lower income in order to move to a more affordable location. Miami, Atlanta, and Austin, Texas, have emerged as top locations where Americans say they’d like to relocate once they resign from their jobs, the survey found. According to the U.S. Census, Texas was the top state in numeric growth from 2020 to 2021, adding 310,288 people. Florida ranked No. 2 with 211,196 people added. Arizona was third with 98,330 new people. Utah came in seventh place, adding 56,291 people. The top five states in numeric decline were: 1. New York, which lost 319,020 people. 2. California, -261,902; 3. Illinois, -113,776; 4. Massachusetts, -37497; and 5. Louisiana, -27,156.

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