Byline: Lesley Mitchell

Oct. 6--At first, it looked as though Utah's homebuilders would be able to avoid the sharp downturn in new-home construction that followed the nation's subprime-lending debacle.

But by July, it became painfully apparent that even Utah's hot economy couldn't prevent residential construction along the Wasatch Front from plummeting to 10-year lows. Faced with this turn of events, builders have been forced to make substantial layoffs and offer thousands of dollars in incentives that could benefit anyone in a position to buy a home right now.

"This is going to be a tough year for builders," said Jim Wood, director of the University of Utah's ...