Wisconsin’s housing market—once known for its relative stability—is showing signs of stress as construction struggles to keep pace with demand. According to the Realtor.com® State-by-State Housing Report Card, the Badger State earned a C+, signaling moderate affordability but slow homebuilding growth. The findings are part of the platform’s broader Let America Build campaign, which grades each state on affordability and construction activity.
While Wisconsin remains more affordable than coastal markets, the gap between demand and available supply continues to widen. Governor Tony Evers has responded with new bipartisan legislation aimed at closing that divide, as policymakers increasingly link the state’s housing shortage to workforce and economic challenges.
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The national housing conversation also gained traction when former President Donald Trump called out major homebuilders in October, urging them to accelerate construction.
“They’re my friends ... but now, they can get financing, and they have to start building homes. They’re sitting on 2 million empty lots, a record,” Trump said. He added that “Fannie Mae and Freddie Mac should get big homebuilders going” to “restore the American Dream.”
Realtor.com’s analysis gave Wisconsin a total score of 58.52, placing it near the middle of the pack nationwide. The state’s median listing price stood at $381,282 in 2024, supported by a median household income of $74,195. Its Realtors Affordability Score of 0.67 suggests that homes remain attainable for middle-income buyers—though affordability is declining, particularly in Madison, Milwaukee, and other urban areas.
However, the state’s homebuilding activity remains sluggish. Wisconsin represented only 1.6% of U.S. housing permits in 2024, despite accounting for 1.8% of the national population. That yields a permit-to-population ratio of 0.61, well below the national average. New homes are also priced well above older ones, with a 39.9% new-construction premium, highlighting that many projects cater to higher-income buyers rather than first-time homeowners.
The broader Midwest continues to offer relatively strong affordability compared with other regions. States like Iowa, Nebraska, and South Dakota have maintained healthier construction levels thanks to fewer zoning restrictions and more available land.
In contrast, Wisconsin’s market has remained cautious—stable demand and modest price growth, but limited new supply. Builders cite zoning hurdles, labor shortages, and rising material costs as key obstacles.
“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies,” said Shannon McGahn, Executive Vice President and Chief Advocacy Officer at the National Association of Realtors®.
McGahn added that “Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”
Recognizing the growing strain, Governor Tony Evers signed five bipartisan housing bills in June 2025 to increase statewide housing supply. The legislation expands several loan and grant programs through the Wisconsin Housing and Economic Development Authority (WHEDA).
The reform package was developed collaboratively between Democrats, Republicans, developers, and municipalities, reflecting a rare moment of cooperation in a divided political climate.
“Access to safe, reliable, and affordable housing statewide is an absolutely critical part of addressing Wisconsin’s long-standing workforce challenges,” Evers said. “But even beyond that, housing ensures our kids have stability, that workers can live near their jobs, and that people in recovery or reentering the workforce have a safe place to rebuild their lives.”
The bills introduce initiatives to rehabilitate aging homes, convert vacant commercial properties into residential units, and offset infrastructure costs for developers. Additionally, Evers signed measures to boost municipal funding and improve rural infrastructure, particularly agricultural roads essential for regional growth.
At a recent hearing, WHEDA CEO Elmer Moore Jr. estimated that Wisconsin needs at least 120,000 additional rental units to close its housing gap. Rising costs have also left a growing share of households “housing burdened,” with some spending more than half their income on rent or mortgages.
While the state’s reforms represent a strong start, experts say Wisconsin must accelerate building to avoid falling further behind. The combination of stagnant construction permits, rising demand, and an aging housing stock could push affordability pressures into smaller towns and rural communities.
Still, with bipartisan backing and a renewed focus on housing as workforce policy, Wisconsin may be positioned to strengthen its housing foundation—and its economy—in the coming decade.
Originally reported by The Realtor.com Team in The Realtor.
