A new study shows homes in Utah are among the least affordable in the country. News Specialist Shannon Ogden, explains:
Deea Hobbs and her husband are in the middle of an exhaustive and exhausting house hunt.
((DEEA HOBBS: "WE'VE BEEN DISAPPOINTED WITH WHAT WE COULD FIND."))
The Hobbs are looking for their second home, they want something a little bigger--five bedrooms--for less than $160,000.
((DEEA HOBBS/HOME BUYER: "WE ARE FINDING SOME THINGS THAT ARE FIXER-UPPERS. NOTHING CLOSE TO MY DREAM HOUSE."))
Their situation is not unique... not here, anyway.
National Association of Home Builders Survey:
Three of the least affordable home markets in the nation are right here in Utah. Provo-Orem is the state's worst. The average family income there, $41,800 a year, the average price of a home $139,000, meaning the average family can only afford 41 percent of all the homes for sale in the Provo area.
Close behind is Salt Lake-Ogden. Average annual family income $47,700 and the average price of a home $155,000.
These prices are slamming doors closed for low-income families.
((STEVE FRAHM/SALT LAKE BOARD OF REALTORS: "THAT GROUP IN THE MIDDLE IS TAKING UP ALL THE LOW-INCOME HOUSING."))
((SHANNON OGDEN: "IT WASN'T ALWAYS LIKE THIS. A FEW YEARS AGO, UTAH WAS CONSIDERED ONE OF THE MOST AFFFORDABLE HOUSING AREAS. IN 1992, AVERAGE PRICE OF A HOME LESS THAN $97,000."))
Reasons: demand outweighs supply, increased building costs, and people simply want to build and own nicer homes.
As for the Hobbs, there is a silver lining to their exhausting house hunt. Last week they sold their Midvale home. It took only four days and sold for $30,000 dollars more than they paid, just three years ago.
Things could be worse. Homes, in San Francisco are the least affordable, nationwide. Average family income, there is $64,400 a year Average price of a home is $315,000.