Why High Building Permits Benefit Utah Buyers

At the gym the other day, a guy asked me, “Do you ever think a big housing correction is coming?” It’s a fair question and one I hear a lot. With the Federal Reserve cutting rates by a quarter percent this month and speculation about more cuts by year-end (though I doubt we’ll see four), people are understandably uneasy. Add in tariffs, stubborn inflation, and talk of a recession, and it feels like the market could tip at any moment.

But here’s the thing. Utah’s rising number of building permits is actually a reason for optimism. More permits mean more homes, and that is good news for buyers. Let me break it down.

The Bigger Economic Picture

There’s no denying the economy feels uncertain. Tariffs are driving up concerns about prices and growth. JPMorgan recently put the odds of a recession in 2025 at about 40 percent, citing tariffs as a major factor. Surveys show most Americans are worried about a downturn, and economists are warning that global inflation could hit 4.2 percent this year if tariffs push prices higher. Some reports say the chance of a U.S. slowdown is closer to 45 percent.

Here in Utah, those concerns are being taken seriously. Governor Cox has even asked state agencies to prepare for a possible recession. Tariffs could mean higher costs, delays in hiring, and slower growth for local businesses. Consumer confidence is down, and families are keeping a close eye on their finances.

These risks are real, but they don’t tell the whole story. The local housing market is showing strength, and building permits are a big reason why.

Building Permits Show the Future

A building permit is essentially the green light for new construction, whether it’s a single-family home, townhome, or apartment. In Utah, demand has been outpacing supply for years, so permits are one of the best indicators of where the market is headed.

In 2024, Utah issued nearly 22,000 residential permits. Projections for 2025 are closer to 23,000, about a 5 percent increase. Through July of this year, more than 9,900 permits have already been authorized, which puts us on track to meet or even beat that number. Cities like Eagle Mountain, Saratoga Springs, and Lehi are leading the charge, with nearly one in five permits coming from that region alone.

This activity matters because it shapes the kind of market you, as a buyer, will face in the months ahead.

Why More Permits Are Good for Buyers

More homes, less frenzy. As more new homes come online in the next 6 to 18 months, competition should ease. Instead of bidding wars and skyrocketing prices, the extra supply creates balance. That means more options, more time to decide, and often more room to negotiate.

Protection against economic swings. Rate cuts will make mortgages more affordable and bring more buyers back into the market. But if tariffs and inflation cause bumps in the economy, having a stronger pipeline of new homes helps keep things stable. It prevents the market from overheating and, in a slowdown, gives buyers a better shot at fair deals.

Confidence in Utah’s future. Builders don’t invest millions in new projects unless they believe in long-term growth. The fact that permit activity is so high shows confidence in Utah’s population and job growth, especially in industries like tech and healthcare. This steady expansion makes a housing crash far less likely.

Don’t Wait for a Crash

If you’re holding out for the market to collapse, you may be waiting a long time. Utah’s fundamentals, job growth, population increases, and an ongoing housing shortage, are too strong. With builders stepping up, we’re looking at a market that is stabilizing, not crashing.

For buyers, that means more inventory, better opportunities, and a chance to find the right home at the right price.

Your Next Step

With more homes on the horizon and interest rates starting to shift, now is a smart time to start exploring your options. Whether you’re buying your first home or upgrading to your next, I’m here to help you navigate the market. Reach out, and let’s look at local listings, review comps, and create a strategy that works for you.