SALT LAKE CITY — For years, Salt Lake City’s housing conversation has centered on rising rents, apartment construction and the growing cost of simply staying in the city.
Now, city leaders say they want to tackle a different part of the affordability crisis: homeownership.
The Salt Lake City Community Reinvestment Agency on Tuesday approved nearly $6.4 million to support affordable homeownership projects across the city, backing townhomes, single-family homes and shared-equity models designed to help lower- and moderate-income families buy into a market many say has become increasingly out of reach.
The funding is expected to support 31 affordable ownership units through two projects on the city’s west side.
At Gladhouse 3, eight cottage-style homes are already built near 1700 South and will be sold to buyers earning at or below 80% of the area median income. At Brix on Tenth near 1000 West, 23 deed-restricted townhomes are under construction for buyers earning between 80% and 100% of area median income.
For many Salt Lake residents, the cost of buying has become a major barrier.
“I can’t even afford the rent,” one renter told FOX 13 when asked whether homeownership in Salt Lake feels possible.
The city says the public dollars are not simply paying someone’s monthly mortgage. Instead, the funding helps close what housing experts call the “affordability gap” — the difference between what it costs to build or sell a home in Salt Lake City and what a working family can realistically afford to finance.
One of the organizations helping make that possible is NeighborWorks Salt Lake, a nonprofit focused on housing access and financial stability.
Bryce Garner said the group’s community land trust model is designed to help buyers build equity while keeping homes affordable for future families.
“It’s not a bad deal,” Garner said. “They’re gaining equity, they’re able to live in a home and build wealth within their families.”
Under the model, buyers build equity over time, but a portion of the home’s appreciation stays with the property when it is sold, helping keep the resale price below market for the next income-qualified buyer.
Garner said the goal extends beyond individual home purchases.
“Keep people here, help people build wealth,” he said.
City leaders say the investment is aimed at helping working families — including teachers, nurses, first responders and other middle-income workers — remain in Salt Lake as home prices continue to climb.
The CRA’s residential wealth-building program is now in its second year.
