Alicia Naleid, Director of Communications
(608) 242-5151 ext. 13
August 15, 2022 – The latest new home construction numbers across the state have decreased significantly in quarter two of 2022 compared to quarter two of 2021.
The data, submitted by all municipalities across the state, shows 3,328 permits were pulled statewide between April 1 and June 30 of this year, 24 percent less than the 4,382 permits pulled during the same period in 2021. This comes after an 11 percent increase in building between quarter one 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,” said 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 numbers in Wisconsin show a decrease of 10.9 percent over the June 2021 level, just slightly above the 11.2 percent decrease across the Midwest. Nationally, homebuilding is down 3.6 percent year-to-date.
The likely reasons for the decline in homebuilding? Skyrocketing mortgage rates and high inflation.
“Low mortgage rates in 2021 tremendously aided the homebuilding industry, as they helped offset high material prices. 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,” says WBA President Cory Sillars. “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.”