Construction has officially begun on an ambitious project to build 35,000 affordable starter homes in Utah, a goal set by Gov. Spencer Cox as part of his effort to combat the state's housing shortage. The announcement was made during his State of the State address, and just one day later, construction crews started work on the first batch of homes in Plain City.

Brad Jacobson, a realtor with Nilson Homes, highlighted that twelve starter homes in Plain City are nearly finished and ready for sale. He emphasized that the state will need to unite all Utah builders to meet the governor's ambitious goal. “And maybe then some. It would have to be a massive undertaking, and we need the municipalities to work with us as well, to help us with the zoning, land, and entitlement, all the developers to make this possible,” Jacobson explained.

This large-scale development is a direct response to Utah’s growing need for affordable housing. The state has faced an ongoing housing crisis, with home prices rising rapidly in recent years, pushing many potential homebuyers out of the market. Jacobson believes that if builders across the state can work together, the goal of 35,000 starter homes is achievable. He noted that the initiative’s success will also depend on municipalities facilitating zoning and land entitlement processes to allow for more construction.

Jed Nilson, the owner of Nilson Homes, has played a significant role in the project, having worked closely with the governor to develop a plan that would offer affordable housing solutions. Nilson’s company currently builds between 300 and 350 homes annually and focuses on producing homes that are more affordable for middle-class Utahns. He explained the vision behind the starter homes in Plain City, which will range from 1,000 to 1,400 sq. feet. These homes will offer modern amenities like two-car garages and fully landscaped yards.

The price point for these homes is aimed at helping first-time homebuyers. “We really want to have them down as low as $350K. We think we can get as low as $330K,” Nilson said, highlighting the importance of keeping costs affordable to accommodate Utah’s growing population and housing needs.

Nilson Homes’ plans align perfectly with Gov. Cox’s goal, giving them a head start. However, to meet the target of building 35,000 starter homes by the end of Gov. Cox's four-year term, the pace must continue. At this rate, Nilson Homes would need to be joined by at least 24 other builders who can maintain an annual output of 350 homes each.

For now, the focus is on the initial 12 homes, with construction underway, and plans in place to scale up significantly over the coming years. "This project is just the beginning," Jacobson remarked. "If we can keep this momentum going, we’ll make a real difference for families looking for affordable housing in Utah."

The overall success of this initiative could provide a significant boost to the state's housing market and help thousands of Utah residents achieve homeownership. With the collaboration of builders, local governments, and industry partners, Utah may be able to make a substantial dent in the ongoing housing affordability crisis.

As the state moves forward with this plan, more details are expected to emerge about how it will impact the real estate market and how other builders can get involved. While the path ahead may be challenging, Jacobson and Nilson remain optimistic that they are on the right track to meet the governor's goal and make homeownership more accessible for Utah residents.