Wisconsin Property Values Increase in 2022

Thursday, September 29th, 2022 -- 8:07 AM

(Hope Kirwan, Wisconsin Public Radio) Wisconsin property values saw a record increase in 2022, coming after a continued shortage of homes and new real estate demand during the COVID-19 pandemic.

According to Hope Kirwan of Wisconsin Public Radio, the Wisconsin Policy Forum found total property values in the state grew by 13.8 percent, overwhelmingly surpassing the previous record increase of 9.6 percent in 2006.

The nonpartisan research group’s analysis looks at data from the state Department of Revenue on equalized property values as of Jan. 1 dating back to 1985. Research director Jason Stein said a variety of factors contributed to the record growth from 2021 to 2022.

With lower interest rates caused by the pandemic, many people bought homes in 2021. Inflation also drove up the price of property just like many other commodities. But Stein said property values have also increased because of the limited supply of homes available in the last decade.

He said home building across the United States slowed significantly after the housing market crash of 2007 and 2008, and the industry has been working to catch up ever since.

"We're seeing more construction, we've seen more construction in 2021. But it just takes a long time to, you know, dig out from under that," he said. Stein said the growth in real estate values have been widespread across the state’s urban and rural areas.

Southeast Wisconsin saw growth at slightly less than the statewide rate. The City of Milwaukee saw an 11.6 percent increase, slightly less than the previous year’s growth of 12.3 percent.

Total values in Dane County grew more than the state at 15.4 percent, and the City of Madison saw an even higher rate at 17.2 percent. "Dane County overtook Milwaukee County to be the largest county in the state in terms of property values, which is remarkable when you consider how much larger Milwaukee County is in terms of population," Stein said.

He said the higher property values are a boon for existing homeowners, especially because property taxes have not increased at the same rate because of state levy limits. Statewide gross property tax levies increased by 1.6 percent, the smallest annual increase since 2014.

Because Wisconsin law has strict revenue limits for school districts, Stein said many districts had to lower their tax rate or keep increases to a modest level because of increases in revenue from the state.

He said municipalities are also restricted to only increase property taxes by the value of new construction, which was challenged by supply chain disruptions and a tight labor market. Higher property values can be difficult for people looking to buy a home or who are renting.

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