Affordable Housing:
Wisconsin’s Secret to the Labor Shortage by J I M S T E I N E K E As the American labor shortage persists, states need to get creative if they hope to fill their open positions. While many have opted to invest in retraining programs, enhance employee benefits, or raise the minimum wage, Wisconsin Republicans have taken an entirely different approach. We are pursuing an agenda that encourages the construction, restoration, and renovation of affordable housing units for job seekers and their families. If successful, this model could serve as a roadmap for other states and the nation as a whole.
past, new retirees are expected to live in their homes for decades to come. This creates a housing shortage for new arrivals seeking open positions. An affordable workforce housing agenda ensures the resources are there to support these individuals, creating a win-win for both states and job seekers alike.
Wisconsin in Focus Wisconsin has been battling a workforce housing shortage for years. According to a 2019 report titled Falling Behind: Addressing Wisconsin’s Workforce Housing Shortage, since 2012, the state has created 75% fewer lots and Understanding the Worker 55% fewer new homes than preShortage recession averages. This scarcity What most people get wrong has been further compounded about the worker shortage is the by a series of other factors: the exit population. The vast majority National Association of Home of people who left the workforce Builders estimates that excessive during the pandemic were and outdated regulations add an above the age of 55 and retired average of $93,870 to the final early. By retiring, they have price of a home – or one-fifth signaled they are not actively its entire value – and rents and seeking employment anymore Jim Steineke construction costs are rising faster and are unlikely to return to than incomes. full-time employment in the We are pursuing an These trends have left the future. Thus, states focusing on Badger State facing some stark enticing these individuals back agenda that encourages the realities. The median age for firstinto the workforce are likely construction, restoration, time home buyers in Wisconsin to be unsuccessful because the has risen to 33. The state is also and renovation of affordworkforce, as a whole, has shrunk running a migration deficit with indefinitely with no foreseeable able housing units for individuals aged 20-24 and has expansion for years to come. job seekers and their a lower homeownership rate for States need to adapt to this households ages 25-34 and 35-44 new reality. While they should families. than all neighboring states except still encourage people on the Illinois. Plain and simple: the sidelines to rejoin the labor pool – and I have voted for legislation that does that here in state needs to do more if it is to be seen as an attractive Wisconsin – states also need to refocus their efforts on destination for job seekers going forward. competing with one another for the workers that remain. America is now a beauty contest, and the states need to do Simple Solutions to Complex Problems Republicans recognize the danger Wisconsin is in everything they can to be seen as an attractive destination and have moved to make it more competitive. We recently for job seekers. The key to success for states lies in a strong introduced a number of proposals to create safer, more infrastructure. Unlike the major population shifts of the affordable housing options throughout the state. Many 8
RIPON FORUM February 2022
