Wisconsin’s Affordability Issue Starts with Housing

Wisconsin’s housing affordability challenge is driven by two factors: insufficient housing supply and rising property taxes. With inventory at historic lows and median home prices continuing to climb, the state faces a growing shortage of workforce housing and senior housing.

Wisconsin now faces the worst housing affordability crisis in the Midwest, with the median home price reaching $312,750 in December 2025, the most recent data available as this publication went to press. Limited inventory continues to push prices higher, making homeownership increasingly difficult for first-time and middle-income buyers. According to the National Association of REALTORS^®, the average age of a first-time homebuyer is now 40 years old. 

Wisconsin continues to underproduce housing for the “missing middle.” To address this shortage, the WRA has advocated for a package of housing bills aimed at increasing supply:

• SB 180/AB 194: WHEDA loan modifications
• SB 480/AB 451: Residential tax incremental districts
• SB 481/AB 455: Condominium conversion reimbursement
• SB 473/AB 449: Local regulation of accessory dwelling unit
• SB 472/AB 453: Required approvals for rezoning related to residential development

In the 2023–25 state budget, Gov. Tony Evers used Wisconsin’s partial-veto authority to extend a $325-per-pupil school funding increase for 400 years by modifying budget language. As a result, school districts now have the automatic ability to raise additional revenue through local property taxes, unless the state fully funds the increase.

The outcome is straightforward: If the state does not pay, property taxpayers will.

During the 2025–27 budget process, the WRA advocated for full state funding of K-12 education to prevent additional property tax increases. However, the final budget provided $0 in new K-12 general aid, meaning property taxes on the median-valued home are expected to rise by hundreds of dollars in 2025 and 2026.

Estimates show property taxes on the median-valued home could increase by more than $300 over two years, on top of any increases already approved — or still to come — through local referendums.

High property taxes strain household budgets, raise barriers to homeownership and hinder job growth. The lack of affordability disproportionately impacts:

• Seniors on fixed incomes
• Working families
• First-time homebuyers
• Farmers
• Small businesses

Wisconsin now ranks as the least affordable state in the Midwest and has the second-highest share of homeowners who are extremely 
cost-burdened, behind only Illinois. Despite more than a decade of levy limits that have saved taxpayers over $14 billion since 2011, Wisconsin still ranks 8th nationally in property tax burden.

Strong public schools are essential to home values, community stability and economic growth. However, Wisconsin relies too heavily on property taxes to fund education and local services. Property taxes account for over 52% of local government funding and 48% of school funding statewide.

While referendums are required to exceed levy limits, most pass: Nearly 70% of school referendums and 60% of municipal referendums are approved. Yet voter support is declining. A 2025 Marquette University Law School poll found 58% of Wisconsinites are in favor of reducing property taxes, compared to 41% who prioritize increased school funding. Statewide polling in 2025 showed 86% of Wisconsinites support the requirement of voter approval for property tax increases, and 66–77% oppose eliminating referendums, regardless of purpose.

To raise awareness, the Wisconsin Homeowners Alliance educated the public during the state budget process, urging lawmakers to fully fund K-12 education and relieve pressure on property owners.

Recent data shows the 2025 tax bill reflects the largest levy increase in over 15 years

• K-12 school taxes rose 7.8%, the highest increase in 30 years.
• School referendums reached record approval levels in 2024 and 2025.
• County property taxes increased 3.1%, above the historical average.
• Total property tax levies statewide increased 5%.

Wisconsin’s average annual property tax bill is approximately $2,000 more than the national average.

The WRA continues working with lawmakers on solutions to address property tax pressures, including removing certain items, such as technical colleges, from the property tax bill.

Longer term, the question is whether Wisconsinites want certainty with their property tax bills. If so, they should be asked to establish a limit on property taxes through a constitutional amendment. 

Indiana took that approach in 2008, when voters approved a constitutional amendment capping property tax rates of assessed value by type

• Owner-occupied primary residences capped at 1%.
• Other residential property, including apartments, at 2%.
• Agricultural land at 2%.
• Other real property at 3%.
• Personal property at 3%.

To offset the caps, Indiana increased its sales tax from 6% to 7%.

A similar proposal in Wisconsin would require approval through the constitutional amendment process. For the Wisconsin Constitution to be changed, the same language must pass the Wisconsin Legislature in two consecutive legislative sessions before it can appear on a statewide ballot. If approved before the end of this session, the same language would need approval again in the session beginning January 1, 2027.

Under such a proposal, voters would be asked whether Wisconsin should amend its constitution to limit annual property taxes. If approved, the amendment would:

• Cap property taxes on a primary home at 1% of assessed value.
• Cap property taxes on all other property at 2% of assessed value.

Property taxes approved by voters through local referendums would not count toward these caps and could be added on top. The amendment would not change how farmland is taxed under Wisconsin’s use-value assessment system.

A “yes” vote supports adding these limits to the constitution, while a “no” vote keeps current law, which has no constitutional caps.

Wisconsin is facing real pressure as high home prices and burdensome property taxes converge. Affordability is no longer just a political talking point; it is constraining economic opportunity and upward growth for Wisconsinites.