Realtors association lays out state’s housing problem, suggests solutions

The state’s housing situation has problems and it’s no secret. 

According to a February presentation by the Wisconsin Realtors Association (WRA), housing costs are rising, inventory is limited, and high property taxes and a very competitive market “are pushing Wisconsinites to the limit.”

“Employers are struggling to attract and retain workers when employees cannot afford to live near work, and small businesses are paying the price for housing scarcity,” the presentation states. 

Furthermore, the presentation states that 140,000 new homes are needed in Wisconsin by 2030 “just to meet demand.” 

When it comes to high property taxes, the presentation states that the state has the second highest property tax burden in the Midwest and eighth highest property tax burden in the country. 

The problem

Affordability is the problem, according to the WRA.

“Wisconsin’s housing affordability crisis stems from a shortage of new homes, historically high property taxes and rising home prices,” the presentation reiterates. “Home costs continue to outpace incomes, making reasonably priced housing harder to secure and maintain.”

The state’s median home price, according to the presentation, has more than doubled in the last 10 years from $155,000 to $325,000.

A first-time homebuyer today, on average, is 40 years old, the presentation states, and this is cause for $150,000 in lost equity compared to first-time buyers who are 30 years old. 

The presentation states the down payment average for homes is at its highest in more than 40 years and it takes, on average, seven years to save for a down payment for a first-time homebuyer.

The WRA says there’s two reasons for the problem. 

The first is a lack of supply. 

“Wisconsin is facing a growing housing shortage,” the presentation states. “Research estimates the state will need to build at least 140,000 new homes by 2030 just to meet current demand. New construction never recovered from the Great Recession. New home permits have fallen behind, leading to reduced supply and rising costs. Wisconsin needs over 20,000 new permits annually to meet market demand.”

There were 22,016 new home permits in Wisconsin in 2005, according to the presentation, and in 2025 that number was 10,399. 

“Construction costs continue to rise,” the presentation continues. “Site work accounts for nearly 8% of total construction costs. (Source: National Association of Homebuilders.) Large minimum lot sizes force fewer homes on more land, resulting in higher costs and pricing out ‘missing middle’ housing.”

Government regulation adds to the cost of new houses, the presentation states, accounting for 40 percent of costs related to multifamily development, adding $88,500 to the cost of a new single-family home in the Midwest and causing a 14-month lead time before construction can begin.

“Market needs are not being met,” the presentation states. “Wisconsin is not building the product homebuyers need, otherwise known as the ‘missing middle.’ Development of condominiums — a product often owned at the beginning and end of the housing cycle — is nearly obsolete. Wisconsin needs more attainable, high density neighborhoods featuring smaller lots and homes.”

Limited housing supply is pushing prices up, according to the presentation, and that’s pushing first-time and middle-income homebuyers out of the market. 

The limited supply is also leading to what the presentation calls a “lock-in” effect, “discouraging people from moving out of homes they no longer need, reducing the availability of homes for buyers who would be a better fit.”

The presentation states that the limited supply is keeping potential buyers in the rental market, which impacts that market too. 

The second reason for the housing affordability problem is “historically high property taxes.”

“While increasing housing inventory and reducing regulatory costs are important steps toward improving affordability, keeping property taxes under control remains a critical factor,” the presentation states. “Wisconsinites are ‘Extremely Cost-Burdened.’ Over 50 % of their income is spent on housing. A burden intensified by the state’s heavy reliance on property taxes.”

According to the presentation, high property taxes hurt seniors and families who struggle to stay in their homes, causes first-time homebuyers to get shut out, makes it so middle-income homebuyers are “locked in” and priced out, small businesses’ growth is limited and are facing higher costs, and employers aren’t able to find employees who can live close to work.

“Why are Wisconsin property taxes so high?” the presentation states. “Local governments and schools are substantially funded with property tax collections — a trait unique to Wisconsin compared to other states.”

According to the presentation, 52 percent of Wisconsinites’ tax dollars go to local governments and 48 percent go to schools. 

In 2025, the presentation notes, the state saw the highest K-12 property tax increases in the last 30 years. Additionally, there were “record-setting” approvals of school referendums in 2024 and 2025. 

The presentation also mentions Gov. Tony Evers’s partial veto in 2023 which extended a $325-per-pupil funding increase and indicates it adds to the property tax burden of Wisconsin homeowners. 

Solutions

As the WRA provided two reasons for the housing affordability problem, it offered two solutions as well. 

The first solution would be to pass “housing supply-side bills.”

There are six proposed laws included in the presentation. 

One would modify loans from the Wisconsin Housing and Economic Development Authority to remove “arbitrary loan restricts to increase workforce and senior housing.”

Another would allow the use of residential tax incremental districts to provide an “optional tool to create owner-occupied, entry-level homes in dense developments.”

A third bill suggested would limit landlords from getting out of the marketplace. 

The presentation includes a law focused on reducing local zoning barriers in order to make residential development more predictable. 

Two other bills the WRA showed support for are one to allow accessory dwelling units on single-family lots by converting existing structures and another to incentivize “condominium conversion. “

Rent control isn’t the solution, the presentation states because it reduces quality, availability and discourages landlord investment. It also doesn’t create more housing and adds to long-term shortages. 

The second solution offered by the WRA is property tax relief. 

“REALTORS® know that vibrant communities and strong schools are the foundation of a healthy real estate market,” the presentation states. “In fact, the quality of local schools is a top factor in where people choose to buy a home. But rising property taxes are putting real pressure on families, seniors on fixed incomes, first-time homebuyers and local businesses. For Wisconsin property owners, high property taxes aren’t just an annual bill — they’re a constant strain on household budgets, and increases hit hard.”

Polling, according to the presentation, shows 57 percent of Wisconsinites favor reducing property taxes over funding schools and 86 percent of people support required referendums if school districts or local governments are looking to raise property taxes.

The presentation includes brief tax relief options: keeping strict levy limits, limiting exemptions for higher tax levies, removing items from a property owner’s tax bill, reforming local referendums, expanding funding for local governments and schools other than property taxes and eliminating Evers’s 400-year authorization for school districts to raise their revenue limits by $325 per pupil each year.

“Wisconsin property owners are ready for change,” the presentation concludes. “Property tax relief, protection for property owners and strong schools require smart, balanced solutions, not a single approach.”

Trevor Greene may be reached via email at [email protected].