Thinking about building a custom home in Utah in 2026? With the market stabilizing and opportunity on the horizon, now might be your moment to make a smart move.
This blog explores current Utah housing trends, construction advantages, and remodeling alternatives to help you decide if 2026 is the right time to build. Discover pros, cons, and key insights so you can make an informed and confident decision.
Here's what we're covering:
The Utah housing market has shifted from the breakneck pace of recent years into a more balanced and manageable rhythm.
That’s welcome news for anyone considering building a home in 2026. With more inventory, slower price growth, and consistent long-term demand, conditions are looking favorable for prospective homeowners.
For the first time in several years, Utah’s active real estate listings are trending upward across many regions, including Salt Lake, Utah, and Davis Counties.
This increase in inventory is giving buyers and land seekers more time and choice when evaluating where to build, which was virtually impossible during the competitive seller’s market of 2021–2022. More available land and existing homes also reduce the pressure to make split-second decisions or settle for less-than-ideal conditions.
The shift toward balance makes it easier to plan thoughtfully and act strategically, especially for custom homes.
Home values in Utah are no longer experiencing the double-digit annual increases seen during the height of the pandemic housing boom. Instead, prices have stabilized and are growing at a more moderate pace, aligning closer to historical norms.
This creates a more predictable environment for budgeting a new home build, helping you avoid price shocks in land appraisals, resale comparisons, or future value projections.
You can work within a more defined financial framework and confidently invest in quality design and finishes without second-guessing timing. For most, this represents a return to a healthier and more sustainable housing economy.
While the market has cooled slightly, demand in Utah remains steady due to strong economic fundamentals. Utah continues to attract new residents from other states thanks to its growing tech sector, low unemployment, and high quality of life. Cities along the Wasatch Front and Utah County are particularly popular for young professionals and families relocating for work and lifestyle upgrades.
For homeowners considering a custom build, this long-term demand helps protect the value of your investment.
As population growth continues to outpace new housing stock in many areas, homes built in 2026 are still likely to benefit from appreciation over time, especially if they’re designed to meet the evolving needs of retirees and young families.
While some potential homeowners are waiting on the sidelines, others are realizing that 2026 may offer a sweet spot for custom home building in Utah.
With market pressures easing, construction timelines stabilizing, and long-term value holding strong, it's shaping up to be a strategic window for getting a head start on your dream home.
Compared to high-cost coastal markets, many regions in Utah still offer construction pricing that’s relatively reasonable for custom homes, especially outside the Salt Lake metro core. While material prices have fluctuated in recent years, many builders now report more predictable supply chains and fewer shortages.
That means fewer surprises, more accurate bids, and increased confidence during the planning phase.
Utah’s housing market is no longer seeing the runaway appreciation of 2021, but that’s actually a good thing for long-term planning. With steadier pricing and more moderate growth, you reduce the risk of market volatility that could impact your investment down the line.
Building in 2026 means you can create a home that suits your long-term needs without betting on rapid resale appreciation to justify the cost.
At the same time, Utah’s fundamentals remain strong. The state’s job market, population growth, and lifestyle appeal are all contributing to sustained housing demand. That means your home is likely to retain and grow its value over time.
When you build new, you’re not just choosing where you want to live, you’re shaping how you want to live. Custom homes allow you to create spaces that reflect your daily habits, support your goals, and evolve with your family. That could mean an open-concept kitchen for entertaining, a separate suite for multigenerational living, or a quiet home office for remote work.
2026 is also a great time to include future-ready features that are easier and cheaper to install during construction. Energy-efficient insulation, smart home wiring, solar-ready roofing, and aging-in-place design elements all add long-term value and convenience.
With the frenzy of the market cooling, homeowners have more breathing room to plan their builds carefully.
Instead of rushing through design decisions or compromising on land selection, you can take the time to research builders, visit lots, refine architectural plans, and align your budget with your vision. This slower pace often leads to better outcomes, both in terms of the home itself and your overall experience.
If you already own a home you love (or are close to), remodeling in 2026 might offer more stability and value than buying another property or building from scratch. With the market stabilizing and construction resources more available, strategic remodels can deliver the updates and conveniences you need without uprooting your life entirely.
Stay in the neighborhood you know and love:
Suppose your current area offers the lifestyle, amenities, or community you cherish, like schools, friends, and familiar access to nature. In that case, remodeling lets you stay put and improve what you already have.
Customize for changed needs:
Families grow, children move out, and retirees downsize or sometimes expand to accommodate multigenerational living. Add an accessible bathroom, create a main-floor master suite, finish a basement for guests, or rezone a space for remote work.
Often more cost-effective and faster than building new:
Compared to building a home from scratch, remodeling can involve less risk, shorter timelines, and fewer unknowns, especially when your home’s structure is sound and you work with a design‑build team that helps you plan carefully.
Boost home value while improving daily life:
Thoughtful renovations, like kitchen upgrades, energy-efficient windows, or added bathrooms, can increase your home’s market appeal and functionality at the same time. Even if you don’t plan to sell soon, remodeling now can set you up for future flexibility and equity gains.
Not every home adapts well to change:
If your home has an awkward layout, structural limitations, or outdated systems, remodeling might have limited yield. In some cases, the effort and cost to reconfigure may rival building new.
Short-term disruption and budgeting caveats:
Renovations mean dust, noise, and temporary limited or loss of access. Without careful planning with realistic budgets, contingency for surprises, and professional guidance, costs can climb.
Permits and timing still matter:
Permit backlogs or supply‑chain hiccups can delay remodels. In a year like 2026, when many homeowners are re‑evaluating their options, demand for skilled remodelers may increase, so locking in a knowledgeable team early is key.
There’s no one-size-fits-all answer, but 2026 is shaping up to be a compelling year to build a custom home.
With a strong local economy, more builder availability, and better customization opportunities, the timing could work in your favor. That said, remodeling may be the smarter choice if you already love where you live.
Whatever you decide, the most important thing is working with a trusted team that knows how to bring your goals to life. At Marshall Homes, we care about your experience, supporting your decisions, and being your guide through every stage of the custom home building or home remodeling process.
Reach out to us for a consultation, and we can talk further about your options.