The landscape of housing and real estate development in Salt Lake City is undergoing significant transformation. In an effort to address housing affordability, increase density, and encourage transit-oriented development, city officials have introduced sweeping zoning changes. These updates impact everything from single-family neighborhoods to high-density areas near transit stations. Understanding these changes is crucial for homeowners, buyers, investors, and developers alike.
Breaking Down the Zoning Changes
Legalizing 4-Plexes in All Residential Areas
As of December 2023, Salt Lake City has officially eliminated single-family-only zoning by allowing fourplexes on all residential lots. This change marks a historic shift in urban planning and development policy, allowing homeowners and developers to build up to four units on properties that were previously restricted to just one single-family home. The goal of this decision is to significantly increase the number of available housing units, particularly in neighborhoods that have traditionally been less dense. The increase in available housing aims to alleviate the pressure on the housing market, ultimately making it more accessible to a broader range of residents.
By allowing higher density in previously restricted areas, the city hopes to create more diverse housing options. Multi-unit housing, such as fourplexes, is generally more cost-effective per unit compared to single-family homes, meaning that this change could help drive down overall housing costs. Additionally, this policy opens up opportunities for homeowners who wish to generate rental income by adding units to their properties. However, the city has attached affordability requirements to this change. At least 50% of for-sale units must be affordable to buyers earning 100% of the Area Median Income (AMI), while rental properties must allocate at least 50% of their units to renters earning 80% AMI or below. These requirements aim to ensure that new housing developments contribute to affordability rather than simply driving further market escalation.
Zoning Map Simplification – Making Development Easier
In addition to legalizing fourplexes, Salt Lake City is actively working to simplify its zoning map in 2025. The city's current zoning regulations have historically been complex and sometimes contradictory, creating unnecessary barriers for developers and property owners trying to navigate them. By consolidating zones and streamlining the approval process, the city aims to make it easier for developers to build new housing and for property owners to understand what is possible on their land.
This simplification is expected to provide greater clarity and flexibility, making it easier to develop properties without excessive bureaucratic hurdles. By removing some of the regulatory barriers, the city hopes to expedite housing projects, which could ultimately help balance supply and demand in the market. For residents, this could mean seeing more diverse housing developments in their neighborhoods, including multi-family housing and mixed-use developments that combine residential and commercial spaces. For investors and developers, the simplification of zoning laws represents an opportunity to pursue new projects with fewer delays and complications, potentially leading to a more efficient and responsive housing market.
Zoning Around Transit Hubs – The Transit Station Area (TSA) Zones
One of the most significant changes in Salt Lake City’s zoning reform is the focus on transit-oriented development. The city has designated specific Transit Station Area (TSA) zones around train and light rail stations to encourage high-density, mixed-use developments. These TSA zones are strategically planned to make the most efficient use of land near public transit hubs, reducing reliance on cars and fostering walkable, urban communities.
The regulations governing TSA zones allow for increased building heights and higher floor area ratios, meaning that developers can build taller, denser buildings in these areas compared to other parts of the city. This is a crucial aspect of the city's effort to create more housing in locations where people can live without depending on personal vehicles. Mixed-use developments are also encouraged in these areas, meaning that residential buildings can be combined with retail, office space, and other commercial uses, creating vibrant neighborhoods where people can live, work, and shop within close proximity.
Another major component of the TSA zoning update is the reduction of parking requirements for new developments near transit stations. Traditionally, zoning regulations have mandated a high number of parking spaces per unit, which has added significant costs to new developments and taken up valuable land that could be used for housing. By reducing or even eliminating some parking requirements in transit-rich areas, the city hopes to encourage residents to use public transportation while also allowing for more efficient land use. This change is expected to make development in TSA zones more financially viable, encouraging more investment in high-density housing near transit stations.
What These Changes Mean for Real Estate in Salt Lake City
These zoning changes are not just technical policy updates; they represent a fundamental shift in how Salt Lake City is planning for growth and development. The effects will be felt across all sectors of the real estate market, from homeowners and buyers to investors and renters.
For homeowners, these changes open up new possibilities. Those who own single-family homes now have the option to develop additional units on their property, which could provide a significant source of rental income. At the same time, homeowners should be aware that neighborhood density will likely increase over time, potentially affecting property values and the overall feel of certain residential areas.
For buyers, the increase in housing supply could provide more options, particularly in the form of smaller, more affordable multi-unit properties. The ability to purchase a home with rental potential could make homeownership more attainable for some buyers, particularly those looking to offset mortgage costs with rental income. Buyers interested in investing in multi-family properties may also find that Salt Lake City’s evolving zoning laws create more opportunities to build and expand rental portfolios.
For investors and developers, these zoning updates present a wave of new opportunities. The ability to build fourplexes in all residential areas means that infill development projects—where underutilized lots are transformed into higher-density housing—are now more viable. Additionally, TSA zones open the door for high-density, transit-oriented projects that benefit from reduced parking requirements and streamlined zoning approvals. This makes investing in multi-family properties and mixed-use developments more attractive, as demand for housing near transit hubs is likely to increase.
For renters, these changes could lead to a more diverse range of housing options and potentially more competitive rental prices as supply increases. New developments in TSA zones, in particular, may offer modern, transit-accessible living arrangements that cater to a variety of income levels. With affordability requirements in place for new rental units, the city is aiming to ensure that the benefits of increased housing supply are felt by residents across different income brackets.
Final Thoughts: Is This a Step in the Right Direction?
Salt Lake City’s zoning changes represent a bold step toward a future of greater density, improved housing affordability, and transit-oriented development. While these policies won’t solve the housing crisis overnight, they lay the foundation for a more sustainable and inclusive real estate market. The shift away from single-family-only zoning is a major move in modern urban planning, aligning Salt Lake City with other progressive cities seeking to tackle housing shortages head-on.
For real estate professionals, investors, and homeowners, staying informed about these changes is essential. Whether you are considering developing property, purchasing a home, or investing in rental housing, understanding these zoning updates can help you make strategic decisions that align with the city’s evolving real estate landscape. If you have questions about what these changes mean for your property or are looking for investment opportunities, now is the time to explore how Salt Lake City’s zoning reforms could work in your favor.
