The Sconi

The number of new home construction permits in Wisconsin saw a decline in the fourth quarter of 2021, according to recent data. Municipalities across the state reported a total of 2,146 permits pulled between October 1 and December 31, which marks a 16 percent decrease from the previous quarter's total of 2,567 permits. The second half of the year showed a significant slowdown with only 4,703 permits issued compared to 7,008 in the first half.

For the entire year of 2021, there were a total of 11,711 permits issued—nearly five percent fewer than the 12,291 permits recorded in 2020. Brad Boycks, Executive Director of the Wisconsin Builders Association (WBA), commented on these figures: “These numbers are proving what our members and homeowners across the state are experiencing. Homebuilding has been strong over the last two years, but material prices and supply chain delays have started to have a significant impact on the number of homes the industry can build.”

Material costs have been particularly burdensome for builders. At one point during this period, lumber costs alone added $36,000 to an average-sized new home. Prices for other essential materials such as steel mill products and aluminum also rose significantly. Over both years combined (2020 and 2021), softwood lumber prices were about 37% higher than historical averages.

WBA President Cory Sillars noted some positive developments regarding material costs: “We are encouraged that the Biden Administration has moved to reduce duties on Canadian softwood lumber from 17.99 percent to 11.64 percent.” He added that more efforts are needed to make building materials affordable and accessible so that construction activities can return to normal levels.

The Wisconsin Builders Association represents over four thousand members in various local associations throughout Wisconsin and has been advocating for affordable housing solutions for more than seventy years.