WAUKESHA, Wis. — Data from the Wisconsin Builders Association suggests that more new housing is being constructed around Wisconsin.
The data, which tracks building permits statewide, showed construction was up 12.8% between July and September compared to the same time period in 2023.
Wisconsin Builders Association President Brad Boycks said while the industry still faces challenges, it is a good sign.
“Certainly we have a housing shortage in this state. We would like to see those numbers increase even more. We have a deficit where we need to build more homes in this state, but you would rather see nearly 13 percent growth than zero growth,” said Boycks.
Boycks said building new homes is an important way to combat the housing shortage, however he said builders need to do it affordably. He feels changing legislation and regulations at the local level is the most important first step, especially as it relates to zoning.
“We need more dense lots, we need municipalities to allow smaller lots with smaller homes,” said Boycks. “Some communities, if you go around and talk to people about the home they grew up in, and they describe a smaller ranch home on a smaller lot, there are too many communities in this state that do not allow you to build that home.”
David Belman owns Waukesha-based Belman Homes. Belman reflected on how he and his colleagues decide when to begin home construction projects.
“Interest rates are one of the top factors we are going to consider when we begin a new project,” said Belman. “But, we need to determine if there is enough buyer demand and what kinds of things buyers are looking for in the market.”
Belman said right now his company is focusing heavily on condominium projects as the population ages and are looking to own properties that require limited maintenance.
While Belman said 2024 was a strong year for his company, he and other builders still face ongoing challenges. It includes the rising cost to build new homes, expenses that get passed along to buyers.
“It is the cost of construction. It is due to a lot of factors—labor shortages, material costs and a lot of regulations,” said Belman.
While Belman said material costs remained fairly stable in 2024, prices on things like lumber rose significantly in 2022 and 2023, and have not come back down.