Mountain States City Scoop: Construction Starts in Salt Lake City
Value of New Construction Contracts Expected to Fall 10% in 2021 After Climbing Last Year
Declines are forecast for all three main market sectors, with non-residential work posting the sharpest drop.
City Grill
Todd Jensen
Vice President, Project Director
HNTB Corp.
“My current outlook remains very positive for Salt Lake City and the broader Utah construction markets for 2021. Utah entered 2020 as one of the nation’s most diverse and high-performing economies,” Jensen says. “Despite the difficult challenges of 2020, Utah has maintained this position. The business community has adapted and innovated to respond to the new challenges brought on by the pandemic.”
Jensen points out that while nine of the 11 critical industries tracked by Utah economists were down in 2020, the construction industry experienced a 4.5% increase. New home starts reached a record level of $10.3 billion. He expects the demand for affordable housing in Utah to continue in 2021. Median sale prices in Salt Lake City increased 12.3% in 2020, the fourth best in the nation.
“The Utah Legislature begins the 2021 session with a focus on restoring ongoing and previously planned transportation funding to maintain momentum in transportation investments. Legislators will explore the prudent use of bonding to accelerate completion of prioritized projects that support economic recovery,” Jensen says.
