WAUKESHA, Wis. — According to data from the Wisconsin Builders Association, there has been an uptick in new housing construction across the state. The data, which monitors building permits, revealed a 12.8% increase in construction activity between July and September 2024, compared to the same period in 2023.

Brad Boycks, President of the Wisconsin Builders Association, acknowledged the industry's ongoing challenges but emphasized the positive trend.

“Certainly, we have a housing shortage in this state. We would like to see those numbers increase even more. We have a deficit where we need to build more homes in this state, but you would rather see nearly 13 percent growth than zero growth,” said Boycks.

Boycks also stressed the need for more affordable housing options. He believes that changing local legislation and zoning regulations is crucial to progress.

“We need more dense lots, we need municipalities to allow smaller lots with smaller homes,” said Boycks. “Some communities, if you go around and talk to people about the home they grew up in, and they describe a smaller ranch home on a smaller lot, there are too many communities in this state that do not allow you to build that home.”

David Belman, owner of Belman Homes in Waukesha, discussed how factors like interest rates influence the timing of new construction projects.

“Interest rates are one of the top factors we are going to consider when we begin a new project,” said Belman. “But, we need to determine if there is enough buyer demand and what kinds of things buyers are looking for in the market.”

Belman noted that his company is currently focusing on condominium projects, driven by the aging population seeking properties with low maintenance.

Although 2024 was a strong year for his business, Belman, like many others, continues to face persistent challenges, particularly with rising construction costs. These increased expenses are often passed along to buyers.

“It is the cost of construction. It is due to a lot of factors—labor shortages, material costs and a lot of regulations,” said Belman.

Belman also pointed out that while material costs remained relatively stable in 2024, prices for essential building materials like lumber saw significant increases in 2022 and 2023, and have yet to return to previous levels.