As the Utah housing market continues to recalibrate from post-pandemic fluctuations, the high-end new construction segment shows notable resilience and emerging opportunities.
From Park City’s alpine estates to the growing suburban luxury hubs along the Wasatch Front, Utah remains a compelling market for primary residence buyers and real estate investors. Let’s look at the current fundamentals to see how things may play out in 2025.
Market Overview: From Decline to Stabilization
After experiencing one of the sharpest short-term home price declines in its history from May 2022 to January 2023 – a drop of 16% – Utah’s market began to find its footing’
Median prices recovered steadily throughout 2024, plateauing around $538,500 by year-end, a 5.4% increase year-over-year. While entry-level and mid-tier homes felt the brunt of rising mortgage rates, high-end luxury homes saw more stable pricing, thanks to higher liquidity among affluent buyers and sustained interest in Utah’s lifestyle offerings.
Rising mortgage rates – hovering around 7% – have prompted many to delay purchases, but those in the higher price brackets, often less reliant on financing, have continued to buy. This dynamic has helped bolster the top-tier segment even as the broader market saw a pause.
High-End Market Dynamics: Resilience and Demand
Luxury housing in Utah, particularly in scenic and amenity-rich regions, has remained robust. In Summit County (home to Park City), median prices rose 7% in 2024, reaching $1,375,000. New homes in Provo increased by 4.5%, outpacing the rest of Utah County which saw an increase of 4%. Wasatch County followed with a 4.8% rise to $1,016,143. These gains reflect a growing demand for properties with proximity to ski resorts, outdoor recreation, and a strong sense of community – features that are increasingly attractive to out-of-state buyers, especially from California and Colorado.
Traditionally high-end communities have begun diversifying their housing stock to include semi-custom and “executive” homes in the $800,000–$1.2M range, attracting move-up buyers seeking space and quality without full custom home price tags.
Homebuilders’ Strategic Shifts
Builders across Utah have adapted to new market realities by offering competitive incentives, such as rate buydowns, luxury finish upgrades, and closing cost assistance -especially for homes above $750,000. Many have also scaled back speculative building in favor of build-to-order models, reducing risk and aligning supply with real-time demand.
While some builders are experiencing longer sales cycles, construction timelines remain stable, and cost pressures from materials have eased compared to 2022, allowing for better project predictability. The most successful builders are those agile enough to cater to buyers’ evolving expectations for sustainability, home office integration, and outdoor living.
Top Neighborhoods for High-End Living
Utah’s standout communities for luxury new homes are all in the Wasatch Front near Salt Lake City and Provo.
Park City (Summit County): A national leader in ski-town luxury, Park City’s real estate is driven by second-home buyers and lifestyle migrants. Expect premium amenities, designer architecture, and gated communities.
Draper (Salt Lake County): With a 7.5% price increase year-over-year and median prices around $785,000, Draper offers newer high-end communities, proximity to tech jobs in the Silicon Slopes, and panoramic views.
Herriman (Salt Lake County): Known for newer developments and master-planned communities, Herriman’s luxury sector saw modest price growth (0.5%), with homes around $572,000. It offers larger lots and suburban peace with city access.
Highland and Alpine (Utah County): These areas cater to affluent families looking for estate homes with views of the mountains and easy access to Salt Lake and Provo.
2025 Forecast: Moderate Growth, High Potential
According to projections from both the National Association of Realtors and local analysts, Utah’s housing market is expected to see continued, though moderated, growth. Median home prices are forecast to climb from $505,000 in early 2024 to approximately $520,000 by year-end 2025, with luxury markets potentially outperforming that benchmark.
Inventory is gradually increasing, giving buyers more options and some experts less optimism about continued growth, highlighting the fact that homes are on the market an average of 20 more days in February 2025 than in the previous year.
However, demand for quality-built homes in the most desirable areas remains strong, particularly those combining luxury, lifestyle, and long-term investment potential. Expect builders to continue delivering homes to low inventory areas and lean further into green building practices, included upgrades, and smart-home integrations as buyers become more tech-conscious.
2025 Projections in a Nutshell
Utah’s high-end housing market stands out as a beacon of stability and growth amidst a national landscape of uncertainty. There’s demand for ultra-luxury and higher priced homes in the right areas; even if homes are staying on the market longer, prices aren’t decreasing, and builder concessions are like concessions you would see in any healthy competitive market.
With strategic shifts by builders, increasing buyer sophistication, a stable economy, and continued in-migration, the state’s high-end housing sector is well-positioned for sustained success through 2025 and beyond. Entry-level and mid-tier housing will likely remain competitive until inventory levels or mortgage rates decrease later in the year, but large price decreases are unlikely.
Additional Reading and Sources:
Deseret News: Utah housing price recovery and forecast
Deseret News: County and city-level housing performance data
KSL: 2025 housing trends and builder insights