In a recent city council meeting, I sat in on a debate regarding the legality of short-term rentals in Orem. Nearly every opinion expressed was against it.
Many pointed out that they won’t get to know their neighbors with a “rotating door.” Others cited experiences of noise from unruly groups. The complaint that stood out the most seemed to be the most painful and close to home. Unaffordable housing continues to hurt families searching for a home and families don’t want another reason for prices to rise.
To investors, the American dream is real. To families, it hasn’t seemed possible for years. John Locke, whose ideas shaped Americans’ understanding of property, argued for a limit to property ownership. Utah is testing this idea.
Housing prices continue to surge
Since the beginning of the COVID-19 pandemic, housing prices have surged by 54.9%. It was reported that housing prices rose even 19% in 2021, something unheard of before the pandemic, where housing prices moderately rose on average 3.5%-5% each year. The prices rise due to demand. The demand has been met with shortages. And corporations who often have “all cash offers” can outbid any family.
It becomes discouraging to look at a home and realize that it seems out of reach. Often homes I look at were built in the 1900s. Homes that I feel don’t need a price tag of $500K-plus.
As I continue to raise and grow my young family, some light has been shed on the current affordability crisis. The 21st Century Road to Housing Act became law in July after an unusual path. It implements new laws on new construction to help lower costs, limits corporations to only be able to own 350 houses, and removal of policies that make it slow to build new homes. Congress saw an opportunity to incentivize building affordable housing. The effects will take a long time to become noticeable and many wonder if it will work. House pricing changes are mainly caused by private companies and local governments.
Proper stewardship for homes
Even with this law, I found language for what I have been feeling in a recent book to voice my opinion on housing affordability. In the “Second Treatise of Government,” John Locke had a perspective that seems more in line with a free world and market than current trends. In debating how much property one can have, he saw a limit. It wasn’t in a number, but a principle on stewardship.
He suggested that “as much as any one can make use of to any advantage of life before it spoils, so much he may by his labour fix a property in: whatever is beyond this, is more than his share, and belongs to others. Nothing was made by God for man to spoil or destroy.”
Locke argues that no one should have more than their needs. Only 3% of single-family rentals are owned by private equity and researchers argue that private equity can help the shortage by renovating homes and putting them back in the market, but that is still 3% of homes whose owners don’t walk the halls and look at the repairs that need to be done.
It can be said that having multiple properties allows bad management, poor care and decreased quality for the owner who lives too far to oversee its care and maintenance. Stewardship allows homes to fall back into the hands of American families.
That is why I found myself sitting in a city council chamber on the debate of short-term rentals’ legality in Orem. Voices are needed to support families and find ways to home ownership. That has been an American blessing since the founding. I hope local governments continue to listen to families over business owners.
Many families’ hopes for owning property don’t extend beyond owning a single plot of land and a home for their family. Generations of my family set up their lives in a home that allows gatherings, provides opportunity, raises families and makes memories. I hope to do the same. So, Utah officials, please continue to find solutions. I hope Orem votes in favor of families. After all, I always see the sign that says “Orem, Family City USA.”