State Realtors Report Fewer Homes Being Built, Cite Regulations As Barrier
The Wisconsin Realtors Association has again pointed a finger toward regulations as they report home construction continues to fall in Wisconsin.
The latest report, shows that new home construction and subdivision activity declined in Wisconsin in 2019, despite strong demand for new housing resulting from population, job and income growth. Housing prices continue to rise faster than inflation and income.
Realtors spokesperson Tom Larson says there's been a drop in number of new homes built and the number of single-family lots available. He says though the demand is growing, construction is slowing...
"We've seen a decline of over 1,500 new housing units. That's about an 8 percent drop from 2018 to 2019. We've seen a decrease in the number of new lots, probably in the same category...."
Larson says they have targeted a couple of reasons for the situation..
"There continues to be heavy regulatory costs and burdens at the local level. Everything from delayed permitting processes to development fees. It's very costly to build a new home and create a lot. We think that is contributing to the extra costs..."
Federal data found home prices in Wisconsin are up 17 percent in the past 3 years. Income rose about 6 percent.