Midway leaders are exploring two potential workforce housing projects to combat rising costs for essential workers, according to city officials during a July 21 meeting. The initiative seeks to create affordable units downtown, addressing a growing gap between local wages and the high cost of living in Wasatch County.
Overcoming High Development Costs
City planner Michael Henke stated that Midway currently lacks dedicated, deed-restricted affordable housing developments. He noted that high costs for land, water, and construction in Wasatch County often make it more profitable for developers to focus on large, single-family homes rather than workforce-oriented units.
To ensure workforce housing becomes a reality, Henke said the city must find a way to subsidize the projects. One specific solution discussed involves the city paying for water shares to reduce the financial burden on developers. Henke noted that the cost of water rights alone can approach the cost of an entire housing unit.
Potential Downtown Sites
The city is currently evaluating two specific sites for these developments. The first option involves a building located just west of Center Street, which features an unfinished basement that could potentially accommodate six apartment units.
Henke described this site as "low-hanging fruit" because the existing plumbing and building permits would allow for development with minimal visual impact on the community. The second proposal involves replacing a commercial building near 100 East with a mixed-use development that would feature retail space in the front and residential units in the back.
Addressing the Income Gap
Midway officials intend to use deed restrictions to ensure any new workforce housing remains affordable for the intended residents. Councilmember Kevin Payne emphasized that in resort communities, housing needs must account for the significant disparity between resident wealth and the wages of the service sector economy.
Payne suggested that to support the service sector, rent levels may need to start as low as 50% of the area median income (AMI) or even lower. This approach mirrors strategies used in nearby Park City, where officials shifted to using workforce wages rather than AMI in June 2025 to determine eligibility for deed-restricted housing, after a staff report suggested AMI could be a skewed target for qualifying residents.
Economic Disparities and Context
The need for affordable housing is highlighted by the significant disparity in local versus state incomes. Henke reported that the median household income in Midway stands at $157,000, which is substantially higher than the Utah statewide median of $98,000.
This local economic profile is part of a broader trend in Utah. According to a 2025 report from the Kem C. Gardner Policy Institute, Utah's median household income of $98,336 ranks highest in the United States when adjusted for cost-of-living differences. The institute's research indicated that Utah's income levels have remained high due to significant economic growth over the last decade.
Next Steps for Midway
Following the initial discussions, Midway's attorney is expected to draft a preliminary agreement. Once the legal framework is established, the city will begin formal negotiations with developers to determine the specific details of the two proposed projects.
