A real estate bubble burst in Utah on Monday as prices plummeted, forcing the local government to seek more borrowing to keep the economy afloat.
The real estate market in the state of Utah has been on the upswing since the state’s recession began in 2008, when it surpassed New York as the largest state market in terms of real estate purchases.
The state, however, has been unable to sustain that growth for the past two years.
The economy has shrunk for the last three quarters.
Utah was also among the fastest-growing states in the country last year.
The state of Nevada was among the first states to experience the housing bust, in which the number of housing units fell by more than half.
The local housing market also struggled during the recession.
However, the housing bubble in Utah burst after the collapse of the housing market in Las Vegas in October 2014, and it has remained in the red ever since.
The Utah Housing Development Authority said the housing boom has resulted in a loss of $1.4 billion in rental income and a loss in state tax revenue, as well as the loss of nearly $100 million in property tax revenue.
A $200 million state contribution to the Utah Housing Fund to help local governments recover from the housing downturn is scheduled to end on June 30, 2019.
“The downturn in housing values in the last two years has been very severe, and we’ve seen a lot of people lose their homes,” Governor Gary Herbert said in a press release.
“I am very concerned that the economic outlook for Utah is deteriorating, and that Utah will not be able to recover quickly enough.”
The housing market is expected to rebound in 2019, but it is unclear when that will happen.
Utah is among the poorest states in America and it could be another 10 years before housing prices rebound.
The housing boom also created a lot more noise in the economy than previously expected.
As more and more people moved to the area, property values soared and real estate developers and investors started bidding up the market, creating more vacancies and lower prices.