Building Costs Per Square Foot in the State of Utah, USA

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Utah 203 E Valley VW Coalville UT84017 - 2 Bed and 2 Baths with Two Storeys on Gross Floor Area 1,055 sqft - Built in 2022 - Price $575,000 (5)

Newly Built House in Utah 203 E Valley VW Coalville UT84017 – 2 Bed and 2 Baths with Two Storeys on Gross Floor Area 1,055 sqft – Built in 2022 – Price $575,000 (5)

Residential Construction Market Analysis in the State of Utah, USA

Building costs are 3% below the national average in the state of Utah, and equivalent to the states of Indiana, Iowa, Missouri, Montana and Oregon. Utah is a state that shines due to its landscape,that goes from canyons, mountains, and praires. In the state of Utah you can find over 10 stunning national parks, the most famous ones being sandstone cliffs of Zion, six prehistoric villages of Hovenweep, among other natural wonders. The biggest cities in Utah are Salt Lake City, Provo, and Moab, however, smaller towns like River Heights, Kaysville, and Providence are the perfect place to live with a family, or if you are looking for a more quiet lifestyle.

This means that Utah has become in recent years a receiving pole for families who want to start their lives in this state of the western region, and also for investors who see it as a unique possibility of obtaining quick profits thanks to the arrival of people looking for housing.

If you are interested in learning more about the real estate market in Utah, especially the residential construction market, then keep scrolling down this article. Here we will talk more about that, showing the prices of houses, as well as the trends in the market and what is expected to happen this year.

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Utah Construction Outlook

In the state of Utah, the cities with the most inhabitants are Salt Lake City, West Valley City, and Provo, exceeding 100,000 inhabitants in each case. However, do not expect to see large buildings or exotic constructions. Even its capital Salt Lake City is not characterized as a concrete jungle, quite the opposite. Only on the main streets in the city center can there be buildings with more than 20 floors, but then they are all residential houses for families.

All towns have the same composition of median houses, in very few cases there are some exclusive neighborhoods with luxury houses, but this is not common in the state of Utah. The houses are made of concrete and in many cases, they have exposed bricks, the same thing happens with the buildings.

All the houses are prepared to face the winter since it is very harsh in Utah and you have to be prepared for snowstorms. Winter is so cold that there have actually been Winter Olympics in Utah, to give you an idea of ​​how low temperatures can get.

Utah Housing Market Analysis and Forecast

As of 2021, one of the most prosperous times in the history of the Utah real estate market began. With a large number of people looking to reside in this state, high demand was generated in the market. In 2021 alone, there was a 27% increase in home prices according to a report published by the Utah Association of Realtors, which is good for sellers but not so good for buyers.

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However, not everything is bad for people who are looking to buy a property. In fact, Utah is one of the states with the lowest interest rates, so specialists insist that it is still a good time to buy a home despite rising prices.

By 2022, the price of housing is expected to increase by 1.28% each month, exceeding an increase of 15% on an annual level. Despite this price increase, there are still affordable properties (especially when compared to other states), making properties take less than 40 days to sell on average. There are currently only a little over 4,000 properties listed, which is a pretty low number compared to other states, but considering the size of the state and the number of people who live in it, it’s a good number.

Utah Average House Price (Median Home Price)

The value of a median house with 3 bedrooms, 2 bathrooms, a kitchen, a living room, a garage, and a small garden in Utah is $500,000. Don’t panic, this is the average price, which is mostly influenced by the values in Salt Lake City, making them very high. In other parts of the state such as Saint George or Eagle Mountain, you can find houses with similar characteristics for less than $400,000.

If you are looking for a place to live, those towns may be fine, but to invest, let me tell you that the money is in Salt Lake City. From investment in buildings, condominiums, residential complexes, luxury homes, and even trailer parks, in Salt Lake City you have everything and more, making it a paradise for investors.

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The most luxurious houses, with more than 4 bedrooms, two floors, more than two bathrooms, and all newly equipped, are usually priced above $700,000.

Proposed Residential Building Projects in Utah

Some housing complexes are being created around Utah State University, to be able to house students who could not find a place to live on the university campus. This is something that was taken advantage of by a group of investors but it is likely that more similar projects will appear, since year after year the number of students who enroll in this university increases. Something similar happens around Brigham Young University, located in Provo, which is one of the best private universities in the country and has offices in other towns.

In Salt Lake City there are some building construction projects that are expected to be completed by 2023 and will bring a new look to the Utah landscape. These are 5 buildings that have innovative and modern designs, especially when compared to the buildings that are currently in the city. The apartments are modern and are prepared to receive families, couples, and even studio apartments for those who want to live alone.

Utah 2548 W 190-S Hurricane UT84737 - 4 Bed and 3 Baths with 3 Attached Garages on Gross Floor Area 2,379 sqft - Built in 2022 - Price $744,900

Under Construction – Newly Built House in Utah 2548 W 190-S Hurricane UT84737 – 4 Bed and 3 Baths with 3 Attached Garages on Gross Floor Area 2,379 sqft – Built in 2022 – Price $744,900

Building Costs Per Square Foot for Single Family Homes in the State of Utah, USA

Building costs are 3% below the national average in the state of Utah, and equivalent to the states of Indiana, Iowa, Missouri, Montana and Oregon.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Utah ranges from $334.54 per sqft to $512.84 per sqft, with the average being $394.81 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Utah ranges from $203.32 per sqft to $311.66 per sqft, with the average being $239.94 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Utah ranges from $131.44 per sqft to $199.64 per sqft, with the average being $153.88 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Utah ranges from $95.92 per sqft to $147.10 per sqft, with the average being $113.21 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Utah ranges from $77.86 per sqft to $119.24 per sqft, with the average being $91.81 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Utah ranges from $61.41 per sqft to $94.13 per sqft, with the average being $72.44 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 5 Metropolitan Areas/Cities in Utah – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 253 municipalities grouped into 29 counties in the state of Utah. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in Utah is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Utah:

Utah Average -3% (3% less than X)

  • Ogden 843-844 -9%
  • Provo 846-847 -6%
  • Green River 845 -3%
  • Clearfield 840 0%
  • Salt Lake City 841 1%

The Metropolitan Area List above as well as the Bar Graphs below shows that Ogden is the cheapest city to build a private home in the state of Utah, and Salt Lake City is the most expensive city to build a home. Building costs are -9% below the national average in the city of Ogden.  Property developers will pay 1% above the national average to build a house in Salt Lake City.

Cheapest Places To Build in Utah:

Ogden is the cheapest to place to build at -9% below the national average, followed by Provo City at -6%. The third cheapest place to build is Green River at -3% below the national average. The fourth cheapest city to build a house is Clearfield, with costs resembling the national average, followed by Salt Lake City at 1% above the national average.

Expensive Places To Build in Utah:

If anything between 5% and 10% is considered expensive, then there are no such metropolitan areas in the state of Utah.

More Expensive Places To Build in Utah:

If anything between 10% and 15% is considered more expensive, then there is no such metropolitan area in the state of Utah.

Very Expensive Places To Build in Utah

The most expensive places to build a house in the USA are those 15% above the national average. There are no such places in Utah.

Utah State Average Costs:

Private home building costs in the state of Utah are -3% below the US average. Construction costs in the city of Green River are equivalent to the state average. Residential development costs in Clearfield are equivalent to the national average. Salt Lake City is the most expensive city to build a home in Utah, and the state of Utah is number 22 on the national ascending costs scale.


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