Wisconsin's Continuing Housing Shortage

Thursday, November 3rd, 2022 -- 12:00 PM

(By Joe Schulz, Wisconsin Public Radio) Registered nurse and Oshkosh native Mackenzie Summerville and her fiance spent more than a year looking for their first home.

In August, the couple finally had an accepted offer, after placing nine offers, many of which were above asking price, on different homes. They moved into their new home in Weyauwega, about a 35-minute commute from her job, last month.

"It was super frustrating," Summerville said. "You get shut down so many times that you just legitimately think you're never gonna find a house." Many in Wisconsin have experienced similar frustrations in recent years.

From Madison to the Fox Valley, Wisconsin has a housing shortage. But it isn't just a quality-of-life issue, it's a workforce issue. Wisconsin has a shortage of more than 120,000 rental units, according to the National Low Income Housing Coalition.

And many municipalities are short on owner-occupied housing as well. The city of Green Bay alone needs between 3,000 and 7,000 rental units, and between 4,000 and 9,000 owner-occupied units by 2040 to meet demand, according to a 2020 study.

Many communities in Wisconsin are in a similar situation. In fact, a 2019 study from the Wisconsin Realtors Association, titled "Falling Behind," found the state had a severe workforce housing shortage. Communities across the state are trying to attract workers in a tight labor market, but housing has made that challenging.

"That's difficult to do when there's no housing to actually let them live here," said Jon Turke, vice president of government affairs for the Fox Cities Chamber of Commerce. "And the housing that is here is higher-end or just out of their price point."

Wisconsin economists say the state didn't build enough homes after the Great Recession, which, coupled with demographic challenges and a surge in demand, has caused the shortage and created a seller’s market.

While the Federal Reserve's recent moves to raise interest rates will slow home buying, it is expected to increase rent costs. Experts say solving the housing shortage will require a multifaceted approach.

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