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Housing

Wisconsin Fails to Meet Housing Demand, Experts Urge Regulatory Reform

Strategic Insights

— 2 min read

A panel of building industry officials discussed the ways to produce more affordable housing in Wisconsin, citing the nation's housing deficit and the state's need for 227,000 new housing units by 2030 to meet demand, according to Forward Analytics. With only 33 affordable properties for every 100 people, the state is struggling to keep up with the growing demand for housing. The panel, moderated by Donald S. Bernards of Baker Tilly, highlighted the significant cost increases in construction, with a 43% rise in prices between January 2020 and April 2022, as reported by the Bureau of Labor Statistics. The high interest rates and strict regulations are making it challenging for developers to build affordable housing.

Key Takeaways:

  • Wisconsin needs 227,000 new housing units by 2030 to meet demand, according to Forward Analytics.
  • The state has only 33 affordable properties for every 100 people, a study by the National Low Income Housing Coalition showed.
  • Construction costs rose 43% between January 2020 and April 2022, according to the Bureau of Labor Statistics.
  • Building codes can be revised to lower development costs without compromising safety, said Dan Hereth, secretary of the Department of Safety and Professional Services.
  • Performance-based building codes, which Wisconsin allows, can help save costs, said Jason Korb, principal of Korb Architecture.
  • The entitlement process and funding restrictions are major barriers for developers, said Josh Jeffers, owner and founder of J. Jeffers & Co.
  • Subsidies, tax credits, and other forms of funding are necessary to make affordable housing projects viable, said Jeffers.
  • Developers need to reduce production costs to make affordable housing projects financially sustainable, said Jeffers.
  • Regulatory reform can help reduce the cost of construction and planning, allowing for the development of more affordable housing stock.

Statistics:

  • Wisconsin needs 227,000 new housing units by 2030 to meet demand, according to Forward Analytics.
  • The state has only 33 affordable properties for every 100 people, a study by the National Low Income Housing Coalition showed.
  • Construction costs rose 43% between January 2020 and April 2022, according to the Bureau of Labor Statistics.
  • There are 12 sources of funding for affordable housing projects like Arabella Apartments, according to Josh Jeffers, owner and founder of J. Jeffers & Co.

Sources:

  • "Wisconsin needs 227,000 new housing units by 2030 to keep up with demand," Forward Analytics.
  • "State had only 33 affordable properties for every 100 people," National Low Income Housing Coalition.
  • "Construction pricing jumped 43% between January 2020 and April 2022," Bureau of Labor Statistics.
  • "Wisconsin allows performance-based building codes," Department of Safety and Professional Services.
  • "Developers can go to the federal and local government for subsidies with affordable housing," Josh Jeffers, owner and founder of J. Jeffers & Co.
  • "There are 12 sources of funding for affordable housing projects like Arabella Apartments," Josh Jeffers, owner and founder of J. Jeffers & Co.

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