Committee hears housing‑affordability analysis showing widening gap for Sawyer County households

The Sawyer County Finance Committee heard a data presentation comparing housing costs from 2020 to 2024 that showed steep increases in construction costs and mortgage payments and concluded the average Sawyer County household faces a substantial affordability gap.

A county presenter summarized a Dane County study showing per‑unit construction costs for multi‑family units rising from about $226,800 in 2020 to $416,000 in 2024, interest rates climbing from roughly 2.9 percent to 7.3 percent, and household income increasing from about $75,000 to $88,000. Using those inputs, the presenter calculated an example monthly payment that rose sharply between 2020 and 2024.

Applying the method to Sawyer County using 2023 figures, the presenter used an average 2023 sale price of $355,000 and a household income of $57,519 (UW Extension data). With a 10 percent down payment and a 30‑year mortgage at a 7.3 percent interest rate, the presenter’s calculation produced an estimated mortgage payment of about $2,241 and a total monthly payment including tax and insurance of about $2,700. Using the commonly used affordability threshold of 28 percent of gross income, an average Sawyer County household could afford approximately $1,342 per month — leaving a monthly gap of about $1,359. The presenter also calculated that the down payment would be about 62 percent of annual household income under those assumptions.

The presenter ran the numbers the other way as well — to find the price a household with that income could support at 28 percent — and estimated an affordable home price near $199,000 given the same interest-rate and down‑payment assumptions. The presenter noted that Zillow listings matching a two‑bedroom, one‑bath, 1,250‑square‑foot home returned only four listings in Sawyer County that fit the affordability filter, underscoring a limited supply of lower‑priced homes.

Committee members commented that the affordability challenge is not unique to Sawyer County and said the issue will be on a future agenda: the committee chair said the June meeting will include discussion of possible solutions to housing challenges in Sawyer County.

The presenter described the Dane County dataset, the methodology (including a 10 percent down payment and a 30‑year mortgage at specified rates) and the UW Extension local figures used for Sawyer County. The committee did not adopt policy at the meeting but scheduled further discussion of housing strategies for the next meeting.