SALT LAKE CITY — Jennifer Cottam has seen the ups and downs of first-time homebuyers and the emotional roller coaster they're on.
"Oh, the excitement of getting it is profound," she said when a buyer lands their property. "Then, when you lose one home after another and you’re priced out, it’s depressing."
Cottam, an agent with ERA Brokers Consolidated, said she has observed many sales end up going to investors, who turn them into rental properties.
"I do know that around 20 to 25% of the homes are bought by investors in Utah," she said. "That’s a pretty significant amount and that generally is at a lower price point where you might see your first time homebuyers try to get in."
She is receptive to an idea being proposed on Utah's Capitol Hill to help people in the state's tight real-estate market try to get into homes. Rep. Gay Lynn Bennion, D-Cottonwood Heights, is planning to sponsor a bill that seems to offer some cover when competing against companies and other large investors for housing.
"The one that is buying the home? Would sign an affidavit saying that they plan to live in that home for at least a year," Rep. Bennion told FOX 13 News in a recent interview about her proposed bill.
It's an effort, the lawmaker said, that could help to give people seeking more affordable housing a little bit of help to get their foot in the door.
"This bill just gives a time frame where people that want to purchase a home to live in it are not competing with investors that have cash or sometimes algorithms helping them find where they’re going to make the most profit," she said.
Rep. Bennion insisted her bill isn't interfering with the free market or a property owner's right to turn around and rent it out later or even sell it again. She's also working on some carve-outs for people to get out of the affidavit and said she has reached out to groups like the Utah Association of Realtors for feedback. (The association did not immediately respond to a request Monday from FOX 13 News for comment on the bill.)
But Rep. Bennion claimed the problem is becoming increasingly noticeable in Salt Lake County.
"We have seen in this county — from 2018 to 2023 — 10,000 homes that were owned by private individuals have been bought by corporations," Rep. Bennion said.
Affordable housing is a top issue for Salt Lake County and even Utah's governor, who has complained in the past about large-scale corporate investors snatching up properties for rentals as he pushes his own initiative for more starter homes in the state.
"I'm one of the few homeowners left on my street, and we’re seeing that all over," said Salt Lake County Council Chair Laurie Stringham, who is supportive of the bill.
The Republican county council chair said the bill could help Salt Lake County as it seeks to address housing affordability. She has personal experience with the struggle to get into housing.
"I have kids that are in that market right now who can’t go out and buy a house," she said. "There’s very little available in the market and things that are naturally low income are gone overnight because those companies can come in and offer so much more for it, they can buy it up at a premium and then hold on to it and rent it out and make their money back long-term."
The bill will be considered when the Utah State Legislature begins meeting in January. Cottam said it may offer some relief for people just looking to get into the market.
"When there is a home that’s out there that’s a little more affordable, maybe it needs some work and these are homes that investors love, it’s a tough market to get into," she said.
