Wisconsin’s housing crisis is directly tied to supply and affordability. With inventory levels at historic lows and median home prices continuing to rise, Wisconsin faces a significant shortage of workforce and senior housing.

Wisconsin faces the worst housing affordability crisis in the Midwest, with its median home price reaching $338,000 in September 2025, the latest data available as this magazine went to press. The market’s limited supply is creating significant difficulty for first-time and middle-income buyers by driving up home prices. This affordability barrier is clearly demonstrated by the average age of a first-time buyer now being 38 years old.

Wisconsin continues to struggle to produce the much-needed housing for the “missing middle.” This package of housing bills seeks to address that challenge. The WRA lends its support to the legislation and underscores key bills that are designed to satisfy separate housing market demands.

To boost Wisconsin’s housing inventory, the WRA is backing a variety of bills that focus on supply-side solutions and expand access to financing for individuals purchasing workforce housing. 

These bills include the following: 

• SB 180/AB 194: Modifications to WHEDA loan bills
• SB 479/AB 452: Subdivision plats
• SB 480/AB 451: Residential tax incremental districts
• SB 481/AB 455: Condominium conversion reimbursement
• SB 473/AB 449: Local regulation of accessory dwelling units
• SB 476/AB 454: Workforce home loans
• SB 472/AB 453: Required approvals of rezoning requests related to residential development

By the numbers

SB 180/AB 194: Modifications to WHEDA loans programs

While the $525 million investment in WHEDA loan programs in 2023 was a step toward addressing the shortage related to workforce housing and senior housing, the implementation of the WHEDA programs revealed opportunities for improvement. Just over $19 million has been awarded to date, creating around 1,000 housing units. With unspent funds due back to the state by January 1, 2031, reforms are essential.

The proposed legislation includes the following features:

• Allows stacking: One of the biggest challenges to development is securing financing, which would be easier through the combination of infrastructure loans in tax increment districts (TIDs), historic tax credits or other financing incentives.
• Expands rural development: Allows WHEDA’s commercial conversion loan to be used for four or more dwelling units in areas around the state with populations of 10,000 or less.
• Increases loan awards: The loans more accurately reflect amounts that provide a greater incentive to developers to use the programs.
• Sets a competitive interest rate capped at 1%. 
• Simplifies the existing formula for determining resale prices after the developer’s initial sale by limiting the property’s annual appreciation. For example, if the property is sold within 10 years, its value may increase by no more than 5% per year, compounded.
• Requires sellers to disclose the 10-year deed restrictions to buyers by adding specific language to both the residential real estate condition report and the vacant land disclosure report.  

SB 480/AB 451: Workforce housing TIDs 

Addresses the scarcity of workforce housing and entry-level, owner-occupied homes by expanding the use of TIDs. This strategy encourages the production of smaller, high-demand housing units to fill a crucial market gap

As amended, this legislation would create a new tax incremental financing (TIF) tool for residential housing that provides for the following:

• Only authorized for a “pay as you go” TID, meaning the local government is not responsible for debt if projected tax revenues fall short, reducing financial risk.
• Caps the residential TID at 3% of the municipality’s equalized value, limiting the total amount of property value that can be financed and protecting overall municipal tax capacity.
• Limited to single-family or two-family properties.
• Must be owner-occupied housing, encouraging homeownership.
• Required to be used only for high density development, by limiting the following parameters:
  • Lot size: Single-family lots can be no larger than 7,500 square feet, and an eligible two-family lot cannot exceed 12,500 square feet.
  • Lot width: Single-family lots must be at least 70 feet wide; two-family lots must be at least 80 feet wide.
  • Square footage: Single-story homes cannot exceed 1,500 square feet; two-story homes cannot exceed 2,000 square feet.
• Costs cannot be used for land.
• Sets a maximum lifespan of 20 years.

SB 473/AB 449: Accessory dwelling units (ADUs)  

This bill requires local governments to allow ADUs on residential or mixed-use properties where a single-family dwelling exists. An ADU may be created by converting an existing structure that is within, attached to or detached from the single-family dwelling. This bill provides a targeted housing solution by expanding multigenerational living options for aging parents or adult children.

• Requires political subdivisions with zoning ordinances to permit at least one ADU on each residential or mixed-use parcel that contains an existing single-family home. 
• Defines an ADU as a residential unit having independent living facilities with a separate entrance from the main dwelling. 
• Prohibits permitted ADUs to be subject to conditional use permits, variances or other special approvals, making the approval process more streamlined. 
• Regulates maximum size relative to the main dwelling, height and lot coverage.
• Grandfathers current ADUs to be used as short-term rentals (STRs) but permits local governments to prohibit any newly created ADUs to be used as STRs. 

SB 481/AB 455: Condominium conversion reimbursement grant program

Reallocates $10 million from the current WHEDA main street loan program to provide developers up to $50,000 for legal fees as well as state and local permit costs to convert existing multifamily properties into condominiums. The bill grants tenants the first right to purchase their converted condominium units and is designed to encourage developers to create new pathways to homeownership beyond traditional rental housing.

The main street housing program uses existing funding to reimburse allowable expenses — including attorney’s fees and permitting costs — for the development of owner-occupied condominiums. By doing so, the program leverages resources to help meet the housing needs of communities across Wisconsin. Seniors, first-time homebuyers, rural buyers and urban buyers alike can all benefit from expanded condominium offerings in Wisconsin. 

More WRA-supported bills in the housing package

SB 475/AB 450

• Purpose: Extends the applicability of the commercial building code to April 1, 2026.
• Authors: Sen. Hutton (R–Brookfield), Rep. Penterman (R–Hustisford)
• Status: Passed the Wisconsin Assembly and is awaiting a Senate committee hearing.

SB 382/AB 375

• Purpose: Amends the state historic tax credit to make the program more accessible to more property owners
• Authors: Sen. Feyen (R–Fond du Lac) and Rep. Armstrong (R–Rice Lake)
• Status: Awaiting action on both the Assembly and Senate floors.

Your advocacy in action

Thank you to everyone who responded to the WRA’s call for action last month. With your help, the following bills* have moved closer to becoming law, demonstrating the power of our collective efforts. 

SB 180/AB 194 

• Purpose: Modifies WHEDA loan programs.
• Authors: Sen. Quinn (R–Birchwood), Rep. Armstrong (R–Rice Lake)
• Status: Passed the Assembly; awaiting action on the Senate floor.

SB 479/AB 452 

• Purpose: Streamlines the subdivision plat approval process. 
• Authors: Sen. Feyen (R–Fond du Lac), Rep. Kreibich (R–New Richmond)
• Status: Passed the Assembly; received a Senate committee hearing and awaiting committee vote.

SB 480/AB 451 

• Purpose: Expands the use of residential tax incremental districts. 
• Authors: Sen. Feyen (R–Fond du Lac), Rep. Armstrong (R–Rice Lake)
• Status: Passed the Assembly and is awaiting action on the Senate floor.

SB 481/AB 455 

• Purpose: Establishes condominium conversion reimbursements. 
• Authors: Sen. Feyen (R–Fond du Lac), Rep. Murphy (R–Hortonville
• Status: Passed the Assembly; received a Senate committee hearing and awaiting committee vote.

SB 473/AB 449 

• Purpose: Requires local governments to allow ADUs and allows local regulation. 
• Authors: Sen. Bradley (R–New Berlin), Rep. Goeben (R–Hobart)
• Status:  Ready for Assembly floor; received a Senate committee hearing and awaiting committee vote.

SB 476/AB 454 

• Purpose: Creates workforce home loan programs. 
• Authors: Sen. James (R–Thorp), Rep. Rodriguez (R–Oak Creek) 
• Status: Ready for Assembly floor and is awaiting action on the Senate floor.

SB 472/AB 453 

• Purpose: Requires approval of rezoning requests related to residential development.
• Authors: Sen. Jagler (R–Watertown), Rep. Armstrong (R–Rice Lake)
• Status: Passed the Assembly; received a Senate committee hearing and awaiting committee vote.

*The bill status was current as this article was published online in November 2025.