Report underscores affordable housing challenge

The 2023 Housing Affordability Analysis Report for the Village of Grafton  approved by the Plan Commission last month reflects the village’s pressing challenge to have affordable housing while focusing on single-family homes. 

According to the report, there has been a decline during the last decade in the percentage of homes occupied by owners, from 66.3% in 2010 to 63.3% in 2022, while the village’s population has grown from 11,459 residents in 2010 to 12,155 in 2020, and that is expected to continue. 

The report states that most households that make close to the median income in the village should be able to afford monthly mortgage payments for a median priced home. 

“The report is imperative to assist us with long-term planning such as the comprehensive plan, which is slated to be updated in 2025,” Village President Dan Delorit said. The village’s comprehensive plan helps guide and shape development.

As part of developing its 2016 plan, Grafton adopted the idea of planned neighborhoods that primarily feature single-family housing and are complemented by duplex and multifamily buildings.

In 2023, the village opened Port Washington Road to future multifamily development. Previously, it had only allowed the buildings in the South Commercial District, downtown and selected infill and redevelopment sites.

The report lays out two potential policy approaches to managing housing costs.

The first would be allowing smaller lot sizes, creating a likely smaller price tag for real estate.

The second would be cutting down on building permit and impact fees.

Delorit said this proposal could have bad consequences.

“Impact fees help support other infrastructure such as parks, public safety and public works,” he said. “I believe limiting them is short-sighted.”

Part of the village’s issue is confronting the issue of housing affordability at a time when real estate markets are nationally inflating, Delorit said.

“Affordable housing in a scarce land market tends to be very difficult as the market drives the price of housing,” he said.

Delorit said programs like working wage housing, which helps middle-class people purchase homes, that are being tried in other communities aren’t feasible in Grafton.

“The Village of Grafton has not had developer interest in working wage housing such as other communities have. We don’t have huge support from large industries, county, state or federal funds,” he said.

Delorit said it is difficult for communities to micromanage home prices.

“Some communities want to keep the price of a home at $250,000 to $275,000 so it is affordable for a family making $50,000 per year. However, by the time the project has wrapped up, the homes spec out at $325,000 to $350,000, making them more difficult to afford with a minimal down payment,” he said.

Delorit said he is always willing to discuss home affordability with “key players” such as developers, business owners and county officials. 

However, he said, “It is difficult to bring these people to the table to discuss a $300,000 new construction build when new home construction sales at $550,000 to $600,000 are booming.”

Village staff members spoke with developers about the need for lower-cost, smaller single-family homes, and were told the lowest home price for them to break even is about $400,000 due to ballooning land prices and construction costs, according to the report.

Delorit said a “big balancing act” is getting a mix of single-family and multifamily housing that feels comfortable for the community.

Personally, Delorit said, he is happy with the current situation but he understands some residents aren’t.

“Grafton is a great place to live, work and conduct business, so a good mix of properties doesn’t concern me,” he said. “However, at this time, until the Seasons and the Farmstead on Falls are complete and occupied, I don’t foresee community support for more rental housing.

“It is great that so many folks want to move to Grafton. They, like us, should have the ability to live in a great community.”

Next year’s comprehensive planning process will refine the village’s goals for different neighborhoods and specific properties eyed for residential development.

The report lists several potential development sites:

ν A lot with 31 acres of forest along Grafton Avenue abutting Grafton High School could be used for single-family homes. 

ν The undeveloped portion of Shady Lane could add 84 new single-family homes to the village. 

ν A 3.1-acre lot at the intersection of Wisconsin Avenue and Pine Ridge Court could have a small multifamily development.

ν A vacant 4.3-acre lot at Ninth Avenue and Hickory Street could be used for an apartment or condominium.

ν The 1.9-acre-lot housing the former Junger Stove Factory at 11th Avenue and North Street could be cleared for townhomes.

“The plan will use this data to project the best uses of our available land that we know is or may become available for development,” Delorit said, adding that he only supports medium-density housing developments, with a maximum of 20 housing units per acre.

All Wisconsin villages and cities with 10,000 residents or more are required to complete housing affordability analysis reports and housing fee reports.