Salt Lake City council backs owner-occupancy rule for new backyard homes

The Salt Lake City Council signaled Tuesday in a straw poll that owners would have to live on site to build smaller backyard dwellings under a proposed zoning change, the Salt Lake Tribune reported. ^[1]

The plan, which could affect up to three-quarters of residential lots, would allow backyard homes as small as 1,200 square feet on lots as small as 2,000 square feet and modestly raise height limits. It would require one off-street parking space per new dwelling. City planners estimate about 13,100 properties would be eligible. Public hearings are set for Nov. 10 and Nov. 17, and a council vote could come as soon as December. ^[1] The council's meeting recap confirms the two hearings, on Nov. 10 and Nov. 17, 2026, and says council members discussed requiring home ownership for at least one unit on the property. ^[3] A Sept. 9 Planning Division staff report says about 35% of the 37,291 properties in the affected zones meet the 2,000-square-foot minimum lot area, and that staff, after consulting the City Attorneys, found regulating corporate ownership of the homes not legally or administratively feasible while noting that owner-occupancy requirements are legal and could be considered. ^[2]

Council member Erika Carlsen said the owner-occupancy rule suits goals of homeownership and affordability. Chris Wharton said it addresses concerns that corporate buyers could enter the market and demolish homes. Other members warned it would limit participation. Planners estimated about 130 owners might build such homes over four years, and council chair Alejandro Puy said the rule could cut that to a couple dozen or fewer by 2030. ^[1]

The council rejected raising the footprint limit to 3,000 square feet and asked for review of setback changes. Supporters say the plan would add housing for average-wage workers. Opponents say it could alter neighborhood character. ^[1]