Governor Evers' proposed budget for 2025-2027 in Wisconsin outlines a significant increase in state spending compared to the previous budget. Key aspects include a substantial tax reduction alongside increased aid for local governments and new property tax credits. The proposal also introduces a new top income tax bracket and various changes to sales taxes. Several state agencies, including the Department of Safety and Professional Services and the Wisconsin Housing and Economic Development Authority, would see changes in funding and staffing. Notably, the budget contains provisions aimed at encouraging affordable housing development and enhancing consumer protection. The proposal now moves to the legislature for review and is expected to undergo significant revisions.

Rising tariffs, particularly on Canadian lumber, are significantly increasing construction material costs for Wisconsin homebuilders. These tariffs, coupled with existing duties, are projected to add thousands of dollars to the price of a new home. While executive orders aim to boost domestic lumber production, current capacity limitations mean that restricting Canadian imports in the short term will likely hinder housing affordability. Furthermore, the construction industry relies heavily on immigrant labor, and potential mass deportations could exacerbate existing worker shortages, further driving up costs and slowing down building. The National Association of Home Builders advocates for immigration reform and efforts to increase domestic lumber supply to mitigate these negative impacts on the housing market.

In this episode we dive into Wisconsin Act 16, a bill that is slated to make changes to the housing development process.

A significant portion of building materials, such as softwood lumber and gypsum, are imported from Canada and Mexico and are subject to existing or proposed tariffs. These tariffs, which act as taxes, increase the cost of construction, ultimately affecting home buyers and consumers. The NAHB estimates that new tariffs on Canada, Mexico, and China, could increase construction materials by $3 billion to $4 billion, so they are advocating for tariff exemptions on these materials. The NAHB is urging the White House to exempt construction materials from tariffs against Canada and Mexico.