Builders Patch | HousingCount: Wisconsin affordable housing data and latest news
Wisconsin
Summary
Wisconsin state is facing challenges to housing affordability. For every 100 low-income renter households, there are 67 units available that are affordable to them. The median household income in the state is $41,179 whereas the median rent in the state $780. Currently, the state is short over 59,569 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.
- 32.6% share of renter households
- 40.4% share of low-income households
- 40.2% share of rent-burdened households
Renter population data
Renters vs homeowners
| Households | % share |
|---|---|
| Renter households | 782,114 |
| Homeowner households | 1,619,704 |
| Total households | 2,401,818 |
Low-income renter households
| Income Group | Households | % share |
|---|---|---|
| Extremely low-income (≤30% AMI) | 94,585 | 12.1% |
| Very low-income (31-50% AMI) | 88,329 | 11.3% |
| Low-income (51-80% AMI) | 132,738 | 17.0% |
| All low-income households (<80% AMI) | 315,652 | 40.4% |
Rent-burdened households
| Households | % share |
|---|---|
| Moderately rent-burdened | 163,807 |
| 30.0–34.9% | 62,147 |
| 35.0–39.9% | 43,355 |
| 40.0-49.9% | 58,305 |
| Severely rent-burdened | 150,339 |
| ≥50.0% | 150,339 |
| All rent-burdened households | 314,146 |
Affordable housing shortage
| Metric | Amount ($) |
|---|---|
| Median household income in 2010 | 28,643 |
| Median household income in 2021 | 41,179 |
| Increase (2010–2021) | 43.8% |
| Median rent in 2010 | 596 |
| Median rent in 2021 | 780 |
| Increase (2010–2021) | 30.9% |
| Supply (current stock) | 123,345 |
| Demand (total units needed) | 182,914 |
| Shortage | 59,569 |
| Supply/demand ratio | 67.4% |
Finance institutions
Wisconsin Housing and Economic Development Authority
201 W Washington Avenue, Suite 700 Madison, WI 53703-2727
LIST OF loan programs:
- Tax-Exempt Bond Financing
- Stand-Alone Bond Financing
- Preservation Plus Financing
- Preservation Revolving Loan Fund
- Tax Credit Development Financing
- Construction Plus Loan
- Rental Housing Accessibility Loan
- 7/10 Flex Financing
- Tax Incremental Financing (TIF)
QAP document (Qualified Allocation Plan)
The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs) which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.
Housing news
Fast Company - How Fed Rate Cuts Impact the Housing Market
The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.
Key Takeaways:
- Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.
While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.