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Rural Wisconsin families struggle as housing affordability crisis deepens

As President Trump spotlights home affordability, rural communities across Wisconsin face historic challenges — from rising costs and shrinking supply to debates over government’s role in solving the problem.

In farm towns and forested hamlets stretching from the Northwoods to the Driftless region, Wisconsin families are fighting a housing affordability crisis that has reached historic proportions. With home prices rising at rates that far outpace wage growth, renters and aspiring homeowners alike are finding fewer options — and greater financial strain.

President Donald Trump recently emphasized the urgency of affordable housing nationwide, pointing to declining interest rates as a pathway to homeownership. But in rural Wisconsin, where construction labor shortages, restrictive zoning, and decades of economic shifts complicate the picture, experts say the problem is not just about mortgages. It’s about supply, access, and long-standing policy challenges.

“My colleagues and I are certainly aware of the challenges young people are facing with owning their own home,” said Rep. Brent Jacobson (R-Mosinee). “The supply of housing must increase, either through construction or restoration. The greatest barrier to achieving this is high development costs.”

Historical Context: From farmhouses to foreclosures

Rural Wisconsin has long been defined by modest housing. Small family farmhouses, century-old duplexes in mill towns, and single-story homes built during the post-World War II boom once provided affordable entry points for young families. But over the past two decades, the combination of farm consolidations, population decline in small towns, and disinvestment in rural infrastructure has changed the landscape.

The 2008 financial crisis left many rural communities with foreclosed or abandoned properties. While some areas have rebounded, others never fully recovered. In counties like Langlade, Adams, and Price, limited new construction since the recession has meant that supply remains far below demand.

A MacIver Institute analysis last year found Wisconsin’s housing prices are among the steepest in the Midwest, with rural counties bearing an outsized share of the shortage due to lower incomes and fewer development projects (MacIver Institute, Sept. 13, 2024).

For some, the problem has escalated into homelessness. A July Wisconsin Watch report detailed how rural homelessness is growing even as federal housing funds face cuts and the governor’s $24 million housing proposal was scaled back (Wisconsin Watch, July 17, 2025).

Unlike in urban areas, rural homelessness often goes unseen. Families “couch surf” with relatives, live in campers on private land, or double up in small apartments. Service providers warn that without more affordable housing development, rural homelessness will only worsen.

State Rep. Brent Jacobson

The Policy Debate: Competing visions

Lawmakers in Madison remain divided on solutions.

Rep. Jacobson has championed two key bills — AB 194 and AB 182 — designed to ease access to development loans and expand low-income housing tax credits, with a focus on directing resources to rural communities. He argues that financial incentives for developers will encourage construction and renovation in areas that have been overlooked by large-scale housing investments.

“Tax credits can be just as effective a tool for housing development as they are for manufacturing,” Jacobson noted. “Our work in this area will continue as our session resumes in the fall, and I will happily support any bill which unshackles the free market and helps housing supply meet demand.”

Sen. Cory Tomczyk, also representing central Wisconsin, takes a different tack. He blames state-level tax hikes and regulations for stifling growth. “There are many factors contributing to high housing prices and housing shortages,” Tomczyk said. “These include elevated costs for building materials, a widespread labor shortage — especially in construction — and the prospect of 400 years of property tax increases thanks to our current Governor.”

Tomczyk believes cutting taxes and streamlining regulations will create the kind of environment where developers and families can thrive without heavy-handed state intervention.

State Sen. Cory Tomczyk, 29th District

Supply, labor, and land use

Experts point to several structural issues driving Wisconsin’s rural housing crunch:

Labor shortages: Construction jobs remain unfilled, particularly in the trades. With fewer builders, projects are delayed or abandoned.

Material costs: Inflation has raised the cost of lumber, drywall, and other essentials, making new housing more expensive.

Land use restrictions: Minimum lot sizes and restrictions on multi-family housing drive up costs and limit density, especially in smaller towns.

Lock-in effect: With mortgage rates higher, families who secured low rates years ago are reluctant to sell, further tightening supply.

Together, these factors create a bottleneck, where even modest demand drives prices to unsustainable levels.

The future of rural housing in Wisconsin may depend on whether bipartisan solutions can emerge. While Trump’s national spotlight on affordability brings attention, local policy decisions — from zoning reform to property tax relief — will shape whether rural families can find a place to call home.

For families, it’s a daily struggle between staying rooted in Wisconsin’s small towns and being priced out of them.

“If this trend continues, Wisconsin won’t be attracting new residents; we’ll be driving them away,” Sen. Tomczyk warned.

But for Rep. Jacobson, the issue comes down to a promise of opportunity: “Young people deserve the chance to build a life here, to own a home in the communities where they grew up. We can make that possible — but we need to act.”

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