The Sconi

Homes have become less affordable in Wisconsin, with some attributing this to delays from the public approval process for new development. Relief may be forthcoming in January due to a law passed by the Legislature last year.

The law, 2023 Wisconsin Act 16, will implement a “by-right” development policy. It mandates that local governments must approve any housing development complying with existing zoning regulations. If rejected, developers can appeal to a circuit court, which must approve the proposal if it meets local standards.

The law aims to reduce uncertainty and expedite the development process by minimizing delays caused by opposition. Passed on a bipartisan basis and signed into law by Gov. Tony Evers in June 2023 as part of an “affordable housing” package, it also includes state aid for housing rehabilitation.

“This bill sets that standard, saying, ‘Hey, communities, if you’re going to make those decisions, you just need to stick with the decision,’” said one of the law’s authors, Rep. Scott Krug (R-Nekoosa). “If you’ve got rules in place or your comprehensive plan in place, you need to follow those rules.”

In the public approval process for new development, municipal planners, city councils and community members determine the fate of housing projects. This process introduces uncertainty because developers cannot predict which aspects might spark opposition.

Research indicates that participants in such public meetings are often not representative of the broader community. Boston University researcher Katherine Levine Einstein found that meeting attendees are disproportionately older, white males who have lived in the area for a long time. In Massachusetts municipalities surveyed by Einstein and colleagues, 63 percent of meeting participants opposed new housing while only 15 percent supported it.

A 2023 Pew Trusts survey suggests this opposition does not reflect broader public opinion; large majorities favor policies enabling more housing.

Existing homeowners often resist new development due to economic incentives. Increasing housing supply can reduce home prices and potentially harm homeowners’ most significant asset value. A survey of over 100 mayors across the country found that 60 percent believed their local housing policy was shaped by a vocal minority rather than majority opinion.

The consequences include higher rents, pricier mortgages and slower economic growth. Future residents bear the burden of these costs without having a voice in decision-making processes.

Wisconsin’s new law extends beyond by-right zoning. While it seeks to bypass opposition to developments conforming to existing zoning ordinances — many restricting development to single-family homes — another provision modifies amending zoning ordinances' processes for greater density.

Currently under Wisconsin law, if at least 50 percent of affected landowners object to a zoning change increasing density, a three-fourths vote is required for approval from the local governing body. When Act 16 takes effect in January, this supermajority requirement will lower to a simple majority facilitating multifamily homes and other high-density options' development.

The law retains a two-thirds vote requirement for “down-zoning,” reducing zoning density but makes up-zoning easier while keeping down-zoning difficult.

While limiting local citizens’ direct influence on zoning codes changes directly through public participation remains during municipalities’ comprehensive land-use plans writing stages mandated since Comprehensive Planning and Smart Growth Law passed in 1999 requiring plans outlining housing use transportation economic development ensuring broader community goals alignment even amid resistance against particular changes challenged courts consider locality’s plan consistency ruling against non-alignment safeguarding broader goals despite specific resistances open discussions meetings providing representative processes compared isolated approvals urgency grown recent decades data median sales price risen over fifty percent between years increasing $168000 $265000 Census indicating incomes increased twenty same period report pinpointed role delays finding average fourteen months construction largely tangled web regulations estimating adding about $88500 cost newly built Midwest homes Nicholas McFaden researcher University Wisconsin-La Crosse Menard Family Midwest Initiative Economic Engagement Research

Any use or reproduction of Badger Institute articles or photographs requires prior written permission contact Badger Institute President Mike Nichols mike@badgerinstitute.org (262)389-8239