Home builders in Utah have another reason to buy steel from Wasatch Steel even if prices increased due to the new tariffs, as most people in the state believe more projects are beneficial for the state.
A survey showed that almost half of voters believe that building more apartments, condominiums and standalone homes will help in solving an affordable housing crisis. In Salt Lake City, home prices in the area have led the region to be among the top 20 most expensive markets in the US.
It takes an average of 4.5 years of the median household income to afford a house in Salt Lake City, which could be one reason why residents are in favor of more housing projects. Only 19% of voters think that more houses won’t be a good thing for the state.
However, some builders have become reluctant to launch new projects because of an additional 25% federal tax on steel imports from Canada, China, Europe, and Mexico.
The tariffs serve as the biggest factor for a likely increase in home construction prices in Utah. Still, the state’s growing population could encourage them to develop more projects.
A bigger population means a stronger demand for residential properties. By 2032, around 4 million people will be living in Utah from 3 million today. Interstate migration could be a factor since employment growth in the state has been steady.
While the additional steel tax may affect a home builder’s bottom-line, it may encourage people to buy from local suppliers. When choosing among steel product and service providers, look for those who sell their items online for better price comparisons.
Whether construction costs increase in Utah, the need for housing will continue to increase because of a growing population. Hence, home builders should focus on how to capitalize on strong demand for properties.