The end of February will mark an exciting transition in the property management industry. As we move beyond the "slow season," preparations are already underway for the busy summer leasing period. In this update, we’ll cover the latest economic trends, provide key legislative updates that impact Utah landlords, and discuss some interesting changes to Utah’s real estate market. Let’s start with the headlines.
Headlines
January Jobs Report - The U.S. added 143,000 jobs in January 2025, lower than expected, but the unemployment rate dropped to 4%. Wage growth exceeded forecasts, with hourly earnings rising 0.5% for the month and 4.1% year-over-year. Job gains were led by healthcare, retail, and government, while labor force participation increased slightly to 62.6%. Revisions to 2024 data lowered previous job estimates but showed higher employment due to population adjustments. Markets reacted little, and the Federal Reserve is expected to keep rates steady until at least June. Despite slower job growth, strong wage gains indicate a resilient labor market.
Weekly Jobless Claims - The number of Americans filing for unemployment benefits decreased last week, indicating a stable labor market in early February. Initial jobless claims fell by 7,000 to 213,000, slightly below economists' expectations. Layoffs have remained historically low, supporting economic growth. The Federal Reserve has paused interest rate cuts, keeping the benchmark rate at 4.25%-4.50% after reducing it by 100 basis points since September. Despite low layoffs, job opportunities are less abundant than a year ago as businesses take a cautious approach. Utah also saw a decline in jobless claims, with 1,653 claims filed, down 44 from the previous week's 1,697. This decrease aligns with the broader national trend of low layoffs and steady employment levels.
Consumer Price Index - Inflation rose 0.5% in January and 3.0% year-over-year, exceeding expectations. Core inflation also climbed 0.4% monthly and 3.3% annually. Markets reacted negatively, with Dow futures dropping 400+ points. The hot inflation report pushed expectations for a Fed rate cut to September, with traders now predicting only one cut in 2025. Despite Trump urging lower rates, Fed Chair Powell signaled patience, suggesting the Fed will delay cuts until inflation shows clearer signs of easing.
Fed Meeting - The Federal Reserve kept interest rates at 4.25%-4.5%, pausing after three cuts since September 2024. While the labor market remains strong, inflation is still above the 2% target, leading the Fed to drop its earlier confidence in inflation progress. Chair Jerome Powell stated that rate cuts require clear inflation decline or labor market weakness. Despite pressure from President Trump, Powell confirmed no contact with him. Markets expect cuts to start in June, with a 61% chance of two cuts by year-end. The economy continues to grow, though private investment has weakened.
2025 Legislative Session - Week 4
The 2025 Utah Legislative Session is actively deliberating several housing-related bills that could significantly impact homeowners, renters, and housing associations across the state. Here's an updated overview of key legislation, including their current statuses:
Homeowners Association (HOA) Regulations:
HB 86 – Homeowners Association Requirements: Sponsored by Rep. Brooks, this bill proposes increased penalties for HOAs that fail to provide required documents. It is currently under consideration in the House Political Subdivisions Committee.
Status: Still in House/Senate Rules CommitteesHB 119 – Solar Panel Restrictions in HOAs Amendments: Introduced by Rep. Owens, this legislation would allow HOAs to impose restrictions on the installation of solar panels. The bill has advanced to the House floor for further debate.
Status: Moved to House Floor for DebateHB 262 – HOA Board Education Amendments: Proposed by Rep. Acton, this bill mandates that HOA board members complete specific educational requirements. It is currently on the House floor awaiting discussion.
Status: Moved to House Floor for Debate
Property Ownership and Rental Regulations:
HB 149 – Single Family Homes Ownership Amendments: Authored by Rep. Clancy, this bill seeks to restrict certain aspects of property ownership. It is currently held in the Rules Committee.
Status: Still in House/Senate Rules CommitteesHB 151 – Home Sales Amendments: Sponsored by Rep. Bennion, this legislation would require homeowners to offer their property to current renters before placing it on the market and imposes restrictions on converting properties into rentals. The bill is under review in the House Rules Committee.
Status: Still in House/Senate Rules CommitteesHB 182 – Rental Amendments: Also by Rep. Bennion, this bill mandates a 60-day notice period for lease terminations and rent increases. The bill has been declared dead and will not proceed further in this session.
Status: DeadHB 261 – Towing Amendments: Introduced by Rep. Maloy, this bill allows individuals whose cars are towed to claim personal property and proposes changes to signage requirements. It is currently in the House Rules Committee.
Status: Still in House/Senate Rules CommitteesHB 337 – Property Manager Revision: Proposed by Rep. Teuscher, this legislation creates a separate license and regulations for property managers. The bill is currently on the House floor.
Status: Moved to House Floor for DebateHB 419 – Real Estate Revisions: Authored by Rep. Walter, this bill directs the Division of Real Estate to prioritize certain complaints. It is currently in the House Rules Committee.
Status: Still in House/Senate Rules CommitteesHB 480 – Landlord Communication Amendments: Sponsored by Rep. Shallenberger, this legislation limits judicial discretion on orders of restitution and allows security deposits to be returned electronically. The bill is currently in the House Rules Committee.
Status: Still in House/Senate Rules Committees
Squatter and Unauthorized Use Provisions:
HB 126 – Unauthorized Use or Residential Real Property Modifications: Sponsored by Rep. Lisonbee, this legislation provides measures to address issues related to squatters. It is currently in the House Rules Committee.
Status: Still in House/Senate Rules CommitteesSB 55 – Unauthorized Use of Residential Property Amendments: Introduced by Sen. Balderee, this bill also focuses on providing relief from squatters. It has passed the Senate and is now proceeding to the House for consideration.
Status: Passed Senate, Now in House
Housing Affordability and Development:
HB 256 – Municipal Zoning Amendments: Proposed by Rep. Walter, this legislation overturns the "Knotwell Rule," allowing for more aggressive city enforcement of zoning regulations. The bill has advanced to the House floor.
Status: Moved to House Floor for DebateSB 181 – Affordable Housing Amendments: Introduced by Sen. Fillmore, this bill proposes measures to increase affordable housing options. It is currently on the Senate floor.
Status: On Senate Floor for Debate
Additional Notable Legislation:
SB 125 – Eviction Amendments: Proposed by Sen. Blouin, this legislation seeks to eliminate the provision that mandates judges to assess treble damages in unlawful detainer cases. The bill has been declared dead and will not proceed further in this session.
Status: DeadSB 201 – Real Estate Amendments: Introduced by Sen. Harper, this bill proposes unspecified changes to real estate regulations. It is currently on the Senate floor.
Status: On Senate Floor for Debate
Utah Real Estate Market
The housing market saw mixed trends in January. The median sold price dropped 8.89% from December to $585,000, but remains 6.36% higher year-over-year. Sold count fell 28.53%, reflecting a seasonal slowdown, while inventory decreased 7.12%. However, listings are still 27.51% higher than last year, indicating growing supply. Despite short-term declines, home prices remain strong, showing continued market resilience.
Median Sold Price* | Sold Count* | Average # of Listings* |
January: $550,000 February: $580,990 March: $583,000 April: $594,500 May: $600,000 June: $613,764 July: 619,000 August: 586,274 September: 600,000 October: 595,861 November: 590,000 December: 642,100 January: 585,000 | January: 980 February: 1,183 March: 1,313 April: 1,379 May: 1,525 June: 1,438 July: 1,489 August: 1,471 September: 1,375 October: 1,393 November: 1,223 December: 1,234 January: 882 | January: 3,755 February: 3,580 March: 3,552 April: 4,151 May: 4,849 June: 4,154 July: 5,455 August: 5,672 September: 5,864 October: 5,830 November: 5,807 December: 5,155 January: 4,788 |
Monthly Change: Down 8.89% | Monthly Change: Down 28.53% Year Over Year: Down 10.00% | Monthly Change: Down 7.12% Year Over Year: Up 27.51% |
* all graphs/data are for single-family homes in Salt Lake, Utah, and Davis Counties.
Rent Report
Utah’s market showed a mix of declines and slight growth in January. While most cities experienced month-over-month (MoM) decreases, the largest being Taylorsville, Murray and Draper, some areas saw positive movement, including Layton at 2.1%. On a year-over-year (YoY) basis, nearly all locations continued to decline, with Murray (-5.8%) and Salt Lake City (-5.0%) seeing the most significant drops. At the county level, all reported negative YoY trends. Statewide, Utah’s MoM decline was -0.3%, with a YoY drop of -3.1%, reflecting an ongoing pattern of slight decreases across most regions, with a few exceptions showing growth.
*Rental data provided by apartment list.
Industry Updates
HUD Withdraws Criminal Screening Rule - The U.S. Department of Housing and Urban Development (HUD) has withdrawn its Reducing Barriers to HUD-Assisted Housing rule, following strong industry advocacy. The proposed rule would have restricted criminal background screenings for HUD-assisted housing, narrowing the scope of denials and increasing the standard of proof for evictions based on criminal activity. The National Apartment Association (NAA) and industry partners actively opposed the rule, submitting over 2,000 public comments. HUD also withdrew a proposed update to the Affirmatively Furthering Fair Housing rule, which would have required state and local governments to develop fair housing plans. While the industry welcomes these decisions, NAA remains engaged in federal regulatory advocacy to ensure balanced policymaking.
Lawmaker wants to loosen Utah’s eviction laws - Utah Sen. Nate Blouin is proposing SB125, a bill aimed at eliminating treble damages in evictions, which currently require renters to pay three times what they owe in rent or other costs. Blouin argues that these penalties are excessive and unfair, but landlords strongly oppose the bill, citing its significant role in reducing evictions by 50%. Paul Smith of the Rental Housing Association of Utah emphasizes that treble damages serve as a deterrent, ensuring tenants take their rental obligations seriously and pay rent on time. Removing these penalties could lead to more unpaid rent, longer eviction processes, and increased costs for responsible tenants who follow their lease agreements. Landlords and housing advocates argue that Utah’s current eviction laws strike a fair balance between protecting property owners and ensuring tenants understand the importance of fulfilling their rental obligations. SB125 threatens to undermine that balance, potentially creating greater financial risks for landlords and making it harder to keep rental housing affordable.
