April 2021 Update
Jonathan Lee, Rich County Commission
I plan on doing at least one written update monthly now that I am in the swing of things as county commissioner.
There are a few common problems among lawmakers and elected officials throughout Utah, and I will try my best to address these issues from the Rich County perspective.
This month I want to talk about housing. I hope to speak about water soon since it is the main topic affecting all people in the county from agriculture, recreation, construction, and everything in between. But I need a lot more time to learn about it, so bear with me. There are some other issues regarding growth that I will address later as well concerning county services like sanitation, roads and emergency services.
Housing: Practically every part of the state is struggling to keep up with housing for growth. The housing market is red hot, leading to outrageous construction costs and insane home prices.
This housing issue is compounded in Rich County as many of our homes are second homes. A few of these homes are built to be investment properties that create wealth for the owners. Rich County is an intelligent investment; there is no doubt about that. New homes on the market can sell in hours. BUT the fact that big groups of homes are second homes (not for rent), or short-term rentals, means that the options to buy or even long-term rent are minimal for anyone looking to call Rich County home. New home prices are too high for full-time residents to purchase, and construction costs are also too costly when building a new primary home. On top of that, there are not enough LONG-TERM (6 months and longer) rentals available throughout the entire county that would usually help alleviate two previous issues. Those facts are strangling our long-term outlook regarding healthy growth. Growth is coming, but it may not be healthy.
Lack of affordable housing isn't only a problem for families that want to stay and live here or even those whose property taxes keep increasing; it is also a business problem. There is not enough full-time labor to run businesses since we have hit a plateau in primary homes. This plateau has essentially capped the in county labor force of primary residents but also leaves businesses without the homes needed to house the seasonal workforce. The obvious solution has always been to bring in seasonal employees from outside Rich County. Again, we face the same problem; where do they stay?
The demand for almost all types of products is growing in Rich County and Utah. We have the # 1 economy in the country. We have the lowest unemployment. We have visitors in droves, and the year keeps extending, allowing for more opportunities regarding businesses that rely on customers. BUT it would still be hard to make a business successful when you have no one to work for you. Demand is here. The labor is not. The labor is not because there is nowhere for families to live that is reasonably priced.
The low-hanging fruit right now and the area I would encourage private investment is multihomed dwellings. DEDICATED TO LONG TERM RENTAL or for primary residents to purchase, not to be thrown into the short-term rental pool. Apartments, fourplexes, and the like. We need these types of homes on BOTH sides of the county. Many townhomes are being slated for construction in Garden City over the next few years, but I am afraid they will fall into the short-term rental pool (which is their choice) and only further compound this issue. Maybe there is a discussion to be had about retaining a percentage of new apartments for long-term rentals?
Maybe the market will dip and alleviate some of the problems. But Rich County is a fantastic place, and with the growth of Utah as a whole, my prediction is visitors will not stop coming even in a market decline. The growth of Utah will buffer investments from being lost on a big scale. But the development of Utah will also force us to deal with issues sooner rather than later.
Some people get triggered when talking about growth in the county. I have found that when I ignore a problem, it will come back time and time again but harder to solve with fewer options each time. Let's try to deal with this one now.
Let me know your thoughts.
