Consultant: West Bend and Washington County face a shortage of middle-income housing

Eric Dorshing, president of Tracy Cross and Associates, told the West Bend Common Council on Dec. 1 that Washington County’s housing market is “very tight” and undersupplied for both rental and for‑sale middle‑income housing. He said stabilized rental vacancy rates in the Milwaukee metro region average about 3.1%, while Washington County is at roughly 1% and West Bend’s stabilized developments are about 1.4%, well below the roughly 5% vacancy generally considered healthy for turnover and filtering.

Dorshing summarized findings from a summer 2025 study funded by the NextGen housing program through Washington County. The study examined recent data (noting 2022–2024 trends) and concluded that nearly 1,500 units introduced over the last decade have not kept pace with demand. He said the county could absorb an estimated 725 housing units per year (about 3,600 units through 2030) if product is properly positioned.

The consultant highlighted a widening gap between resale and new‑construction prices, with new single‑family detached median prices rising sharply and resales selling in far fewer days on market (about 15 days versus a typical 72–90 days). For for‑sale housing the study identified a particular shortage in the $250,000–$450,000 range and recommended a “full hierarchy” of for‑sale products — including townhomes, ranch villas and smaller‑lot single‑family homes — targeted at mainstream and workforce buyers.

To bring prices down, Dorshing urged value engineering of product (smaller, efficient floorplans, optional basements), higher‑density for‑sale options such as 10–12 units per acre townhomes and larger‑scale rental communities (he said not to be “fearful of a 180‑unit development”). He also suggested municipal tools and partnerships — including zon­ing changes, reduced impact fees, tax‑increment financing or NextGen‑style incentives — to help align builders’ costs with target price points.

Council members asked whether the recommended wage and contract changes discussed earlier in the meeting were accounted for in the 2026 budget; a city staff member confirmed the housing recommendations would be considered alongside existing budget commitments. Dorshing closed by urging West Bend to pursue coordinated public–private strategies to capture a disproportionate share of county demand and to diversify supply across price points.