The Racine County Economic Development Corporation on Jan. 13 summarized an updated residential market analysis that projects continued household growth and persistent affordability pressures across the county.

The study, completed in fall 2024 by Tracy Cross & Associates, estimates the county can absorb roughly 855 housing units per year—similar to a 2020 finding of about 890 units annually—and documents a strong pipeline of rental construction concentrated in Mount Pleasant, Caledonia and Sturtevant. Jenny Treck of the RC EDC said the study combined construction and employer-survey data and recommended practical changes to increase supply.

The study shows rental vacancy rates well below the consultant’s 5% “sweet spot,” with an overall rental vacancy in the county reported at about 2.4 percent and average rent near $1,623. Jenny Treck said more than 4,500 rental units have been added since 2018 and that new construction has absorbed much of the projected demand.

Consultant recommendations in the report include adding a wider variety of housing types—smaller-lot single-family, townhomes, duplexes, single-story “villa” units for older buyers, and efficient “box” construction to reduce costs—and encouraging larger master-planned communities where feasible. The report also suggests optional basements for new single-family homes and other cost-saving design choices, and proposes a working committee to coordinate municipal zoning, developer incentives and creative funding approaches.

Board members used the presentation to raise local questions. One trustee asked whether data could be disaggregated east and west of I-94; Treck said municipal-level breakdowns can be provided. Trustee comments noted zoning changes the village has made in recent years and discussed the costs of subdivision infrastructure and the relative difficulty of assembling large residential sites in Mount Pleasant.

The RC EDC presentation also highlighted employer outreach used in the consultant’s demand assumptions—roughly 2,000 jobs over five years, or about 400 per year—and cited Sheboygan County examples of employer-led down-payment assistance as a potential model for recruitment and for-sale affordability.

The village board did not take action on the study; members thanked the RC EDC for the data and discussed next steps for zoning, TIF usage and possible countywide coordination.

The countywide market analysis and full consultant report are available from the RC EDC; Treck said the full study is posted on the RC EDC website and that staff can provide municipality-level detail on request.