Wisconsin’s aging population is contributing to smaller household sizes and a rising mismatch in available housing, according to a study by the Wisconsin Policy Forum.
That in turn, contributes to rising housing prices.
Nationally, the household population increased 63.7 percent from 1970 to 2020. Meanwhile, the total number of households increased 99.9 percent. This gap was significantly larger in Wisconsin where the household population increased 34.1 percent during this period, but total households increased 82.8 percent.
The trends are directly related to the rising number of single family households as the population ages. While single family households rose 57 percent nationally from 16.7 percent to 27.6 percent, in Wisconsin, the increase was 78.7 percent with nearly one-third of Wisconsin households (30.3 percent) being single family by 2020.
The mismatch causes rising prices due to scarcity as well as the fact that single person housing is typically more expensive per person because it still includes a kitchen and bathroom. Also, while those with enough personal wealth can afford housing that could accommodate a larger family, it squeezes the market for families of lower income by removing the housing from the market.
The report concludes that there is an expectation that household sizes will continue to shrink through at least 2040 and officials should take that into consideration when developing public policy.
