Eric Dorshing, president of Tracy Cross & Associates, told the City of West Bend Common Council on Dec. 1 that Washington County’s housing market is “as tight as we've seen in the state of Wisconsin.” The consultant, presenting a study funded through the NextGen housing program, said both rental and for‑sale sectors are undersupplied—especially at mainstream or workforce price points—and recommended a strategic hierarchy of products to close the gap.

Dorshing summarized key findings: stabilized rental developments show vacancy rates around 1.4% in the Milwaukee region cohort he examined, far below the roughly 5% typical for turnover. In the for‑sale market he said the median for new construction single‑family detached closings has moved sharply upward in recent years and that resales are moving faster (shorter days on market) as price differentials widen. Using household‑growth forecasts, he said the county could absorb about 725 units per year and roughly 3,600 units by 2030 if product and positioning matched demand.

To address the shortfall, Dorshing urged more supply targeted at the “middle and upper middle” segment of the market. He recommended increasing mid‑density for‑sale options (townhomes and compact single‑family on smaller lots), larger scale rental communities that include studios through three‑bedroom options, and design/value‑engineering strategies (for example, optional basements and efficient floor plans) to reduce price points. He also recommended municipalities work closely with builders on density, zoning and impact‑fee strategies—what he characterized as practical public–private collaboration—to bring prices into reach for households in the 50%–150% of median range.

Council members asked about affordability for a household at the county median. Dorshing said a household at roughly $90,000 annual income would likely qualify, under current interest‑rate assumptions, for mid‑to‑upper $200,000 price points, while the for‑sale gap is concentrated in homes priced from about 100% to 160% of median.

The study, Dorshing said, also recommends allowing larger master‑plan communities with multiple product lines and considering tools such as tax‑increment financing or targeted programs like NextGen as mechanisms to achieve price points and higher absorption rates. The full report is included in the council packet.