The Wisconsin Housing Market

 The Wisconsin Housing Market: 

Written by: Mitchell Eldredge 

What are some recent effects of the housing market in Wisconsin?

As of 2021, the total value of housing in Wisconsin had the greatest rate of increase in about 15 years. As a consumer in the market for a house, this could come off as frightening because the spread of homes available is lessening while the price of each is on a great increase. The average value of a single residential property in Wisconsin increased at a rate of 34.4% from $126,500 to $170,000 in a matter of 6 years. This is considered a statewide increase, however the urban counties that took the greatest hits include Milwaukee, Winnebago, and Kenosha. There are many that are being affected, however the majority are millennials; this is because in the past 3 years, millennials in the housing market have increased to a great extent. 

Why is this happening?

According to the Wisconsin Realtors association, the increased rates across Wisconsin are mainly due to the recent inflation. However, other factors include an increase in the amount of millennials reaching the age in which they are in the market for a house as well as a limited supply of homes. In 2021, the percentage of millennials (ages 23-31) in the housing market rose to 43% from 37% the year previously. During the beginning stages of Covid-19, millennials took advantage of the pandemic and cut their costs of rent by moving in with family. As a result, in 2019 those under the age of 25 accounted for only 14.86 percent of the total housing market. This number has more than doubled in 2 years as the nation has progressed through Covid-19.  As a result of inflation, construction costs have increased significantly and with this, there have been persistent labor shortages in wisconsin. Evidently this has led to a housing shortage statewide. 

Bibliography

Daykin, Tom. “The Value of Wisconsin Properties Sold in 2021 Increased at the Fastest Rate in 15 Years. It's Another Sign of a Strong Housing Market.” Milwaukee Journal Sentinel, Milwaukee Journal Sentinel, 24 Mar. 2022, https://www.jsonline.com/story/money/2022/03/24/wisconsin-home-property-sales-values-increased-rapidly-2021/7142902001/. 

“January 2022 Home Sales Report.” Wisconsin REALTORS® Association, https://www.wra.org/HSRJan2022/. 

Giovanetti, Erika. “'Wave of Millennial Buyers' Flood the Housing Market amid Record-High Home Prices: Report.” Fox Business, Fox Business, 6 Apr. 2022, https://www.foxbusiness.com/personal-finance/millennial-homebuyers-housing-market-rising-prices.