Wausau committee hears regional housing update as vacancy data, projects point to continued demand

The City of Wausau Economic Development Committee on June 3 heard a presentation from Sam Wessel of the North Central Wisconsin Regional Planning Commission and a city planning update from Assistant Planner Carrie Edmondson outlining regional population projections, vacancy rates and a slate of housing projects that officials said together partly address previously modeled demand.

Wessel summarized the 2022 metro housing assessment he led and said the study’s earlier projections called for 2,077 housing units by 2025 and another 1,153 by 2030 across the eight participating municipalities. “We projected 2,077 units needed by 2025 and another 1,153 by 2030 for the 8 municipalities that participated in the study,” Wessel said. He added that, accounting for projects already built or underway, roughly three-quarters of the 2025 target has been met when two large developments are included in the count.

Why it matters: committee members and staff said low owner vacancy and continued low countywide rental vacancy suggest persistent demand for both new and preserved housing stock. Wessel noted changes in official state population projections based on the 2020 Census that are lower than older estimates and said household projections the city uses have not yet been updated by the state. “They did not provide updated household projections,” he said, and staff cautioned the committee that those missing household projections limit precise forecasting.

Most important facts - Vacancy and demand: Wessel cited 2023 Census data showing a 0% homeowner vacancy rate for both the City of Wausau and Marathon County, and rental vacancy rates of 5.6% for the city and 3.6% for Marathon County. He said a healthy homeowner vacancy rate is closer to 5%. - Projected need and progress: The 2022 assessment projected 2,077 units by 2025 and 1,153 more by 2030 for participating municipalities; Wessel said roughly 75% of the 2025 units would be accounted for if two large developments are included. - Major projects cited: presenters and committee members identified several active or planned projects, including Foundry on Third (mixed-use, 153 market-rate units, under construction), West Side Commons (56 income-qualified units using Low-Income Housing Tax Credits, under construction), a One Guard project (approximately 144 market-rate units, planned groundbreaking fall 2025, completion 2027), a 700-series project of about 50 income-qualified units using LIHTC (planned 2025–2026), Colby employer-led apartments (about 102 units), and Green Tree Meadows Subdivision (about 149 single-family lots, phased).

Committee discussion and concerns Committee members repeatedly returned to jobs and wages as part of the housing equation. Several alder members said workforce availability and livable wages affect housing demand and affordability. Alder Henke said he supports building new and renovating existing homes to attract residents, and that migration tied to climate and job factors could increase demand: “I always I always like to support, building housing,” Henke said. Other members argued the city must consider place-making and amenities—parks, riverfront and cultural assets—to retain and attract younger residents.

City programs and policy context Assistant Planner Carrie Edmondson reviewed local plans and tools. She noted the city’s comprehensive plan (2017) and a 2020 zoning code update that allows more housing options. Edmondson said the city runs homeowner and rental rehabilitation programs and down-payment assistance and cited the regional affordable housing task force that grew from the 2022 assessment. “The city of Wausau will continue to offer equal access to quality affordable housing as one of our goals in that chapter,” Edmondson said.

Data limits and next steps Wessel and Edmondson flagged data limits: the state’s newer population projections are based on 2020 cohorts and do not yet include updated household projections the city would use to refine unit forecasts. Wessel said anecdotal trends and other studies suggest in-migration may outpace the conservative state projections, but he cautioned that the timing and scale of migration are difficult to predict.

Committee members asked staff to continue tracking vacancy trends, rent levels and the impacts of new market-rate development on existing private rentals, and to report back with updated figures when state household projections become available. Edmondson said the city is preparing for the upcoming comprehensive-plan update and will incorporate housing chapter work as part of that process.

Ending: The committee did not take formal action on policy at the June 3 meeting; presentation materials and lists of current projects will be revisited at future meetings and used in the city’s upcoming comp-plan update.