The Sconi

The number of new home constructions in the state has seen a notable decline in the second quarter of 2022 compared to the same period last year. Data collected from municipalities across the state indicates that 3,328 permits were issued between April 1 and June 30 this year, representing a 24 percent decrease from the 4,382 permits issued during the same timeframe in 2021. This follows an earlier increase of 11 percent in building activity between the first quarters of 2021 and 2022.

"Many rural counties such as Buffalo, Jackson, Marquette, and Vilas counties are still seeing significant growth, as they did in quarter one," stated WBA Executive Director Brad Boycks. "Most counties across the state saw a decline in quarter two; however, Rock County stands out with an increase of 129%."

Year-to-date figures for Wisconsin reveal a decrease of 10.9 percent over June 2021 levels, which is slightly above the Midwest's overall decrease of 11.2 percent. On a national scale, homebuilding has dropped by 3.6 percent year-to-date.

Skyrocketing mortgage rates and high inflation are likely contributing factors to this decline in homebuilding activity. "Low mortgage rates in 2021 tremendously aided the homebuilding industry, as they helped offset high material prices," said WBA President Cory Sillars. "Now that mortgage rates have gone up two percent in a matter of a few months, it makes building a home less attainable for your average homeowner." Sillars expressed hope that inflation might soon peak and lead to declining prices: "Hopefully we are at or near the peak of inflation and see prices declining soon, making building a home more realistic for many, as we're unlikely to see mortgage rates come down this calendar year."

The Wisconsin Builders Association (WBA) is a professional trade association comprising 21 local associations focused on helping members build communities throughout Wisconsin. The organization advocates for its approximately 4,000 members within the homebuilding industry to maintain affordable housing options for families across Wisconsin.