Utah sees housing boom

Washington County Economic Development Director Scott Hirschi, who works to attract new businesses to southwest Utah, said he believes Washington County's growth is more likely a boom, not a bubble.

"The 6.2 percent in housing starts is, ironically, the same as the average population growth rate that Washington County has experienced for the last 35 years," said Hirschi. "Consistency is good since it makes it easier to plan and prepare, but it would be better if we were in the 2 to 3 percent range. The higher percentage of growth is more difficult to manage."

Hirschi cautioned that the current rate of growth has its negative side effects including less affordable housing for a growing work force. He also predicted that housing starts for the same period this year will be even higher, "probably in the 7 1/2 to 8 percent range."

"It's not a good thing, in my opinion," he said. "We'd be better off if we were slowing down a little bit."

Utah was one of four Western states among the nation's top five growth states.

Nevada added an estimated 41,790 housing units, a growth rate of 4.5 percent; and Arizona grew by 3 percent to an estimated 70,496. Florida and Idaho ranked fourth and fifth, respectively, each with 2.5 percent growth.

"The West has traditionally been a place with more land, areas to build," Spendlove said, noting that real estate remains relatively less expensive than some other markets such as Southern California.

"In Nevada housing and real estate prices are going up dramatically, but they're still seeing strong housing and population growth," Spendlove said.

While many of the 10 fastest-growing counties were in the Southeast, Madison County, Idaho, ranked second in growth. Loudoun, Va., and Pinal, Ariz., also made the top 10.

The biggest numerical gainers were Maricopa County, which includes Phoenix, Ariz., and gained 45,000 homes. It was followed by Harris, Texas, which gained 38,000 units, and Clark County, Nev., which gained 35,000 units, for a growth rate of 5.5 percent.

The estimates are based on Census 2000 counts carried forward by administrative records such as building permits. Housing units can be single-family units such as houses or multifamily units such as duplexes or apartments. Group quarters, such as dormitories, prisons and nursing homes, aren't included.

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