Is Your New Neighbor in Utah Some Big Investment Firm?

Investment in Homes 

Large firms trying to get a return for their investors have increasingly bought homes because it is a physical asset that goes up in value. By paying cash for blocks of homes, firms can avoid the high rates and entice home builders to sell blocks of new houses. 

This creates problems for first-time home buyers who don’t have cash and can’t compete. It also limits the number of houses available and raises rents and causes home values to go up. This can trap young people in a cycle they can’t get out of. 

Are Investment Firms Buying up Utah Houses? 

This article from KSL shows that there have been more homes bought by investment firms lately. In the Salt Lake area 25% of homes have sold as investment properties and in Provo/Orem area it is up to 26.8%. 

I lived on a cul-de-sac where two of the five homes were owned by someone who lived in another city and put the houses up for rent. They stood empty for a long time. The landscaping slowly became weedier, and the lawns died. It was frustrating.  

What to do About Investment Firms Buying Blocks of Houses 

Other states and countries have tried different ways to deal with much of their available housing being bought up by these firms. Some have put taxes on investment properties and others have just limited what big firms can buy. 

This presentation on the Utah.gov sight talks about making it easier for first-time buyers in the state to purchase a home. It also suggests ways to find out who is purchasing these properties, so they have more information. They also suggest taxing owners of homes that stay vacant over a long period. 

Read More: Don’t move In Southern Utah Until It Is Blistering Hot

The problem becomes real when you are the only family on your street that lives there and the rest are vacant investment properties. It starts to feel like living in a post apocalypse world.