This story is the first part of a two-part series on affordable housing in Walworth County.

According to a University of Wisconsin-Whitewater study, Walworth County is facing a housing crisis that could result in a shortage of 4,000 households by 2030.

The shortage is already straining the local workforce, as teachers, nurses, firefighters, and other essential employees are being priced out, forced to commute from neighboring counties, and positions remain unfilled.

Home prices have risen more than 40% in five years, rents climb faster than wages, and construction is failing to keep pace. What began as an affordability issue has escalated into an economic emergency, threatening the stability of schools, hospitals, businesses, and communities.

“Without all levels of housing, not only economic growth but economic stability is threatened,” warned Walworth County Administrator Mark Luberda.

Essential workers priced out

The county’s workforce, earning 60-120% of the area median income, faces the greatest pressure:

Healthcare: CNAs, LPNs, and home health aides earning between $33,000 to $58,000 often commute from Rock or Racine counties. Turnover rises sharply when commutes exceed 30 minutes.
Education: Teachers, aides, drivers, and custodians earning
between $30,000 and $55,000 struggle to find homes under $300,000, while support staff spend 30-50% of income on rent.
Manufacturing and trades: Welders, CDL drivers, and maintenance techs earning between $38,000 and $65,000 leave jobs near Delavan, Sharon and Elkhorn due to housing scarcity.
Hospitality and retail: Lake Geneva’s tourism economy relies on workers earning between $30,000and $45,000, yet rents often exceed $1,200 for small units. Employers are increasingly use shuttles or temporary housing to fill seasonal roles.
Public safety: Police, firefighters, and municipal staff earning between $38,000 and $68,000 often live outside the communities they serve, affecting response times and civic connection. “The county is having difficulty hiring employees because prospective employees could not find a place to live in the county,” noted Luberda.

Income data reveals the gap: workers earning between $35,000 and $45,000 can afford homes priced $175,000 to $225,000, yet the median home price exceeds $300,000.

Even teachers, tradespeople, and police recruits earning $50,000 to $65,000 can only afford $225,000 to $300,000 homes, leaving middle-income earners priced out. Only households earning $70,000 to $90,000 or more are near market prices.

Countywide economic strain

Roughly one-third of Walworth County households live below the poverty line or earn just above it but cannot cover basic costs without strain, according to the ALICE framework (Asset Limited, Income Constrained, Employed). Many are essential workers.

More than 1,400 workers commute daily into the county due to a lack of affordable housing. Vacancy rates remain extremely low – less than 2% for ownership units and 4 to 6% for rentals – and housing supply lags projected household growth. Employers estimate 10 to 20% of positions in healthcare, education, and hospitality remain persistently unfilled.

The ripple effects are clear: higher wages to offset commuting costs, rising consumer prices, declining local spending, and reduced school enrollment as fewer young families settle in the county. “A county needs housing at all levels to support businesses, schools, and civic engagement. Without that, not only economic growth but economic stability is threatened,” Luberda emphasized.

County response and initiatives

County officials, including Luberda and the Walworth County Economic Development Alliance are implementing a multi-pronged response aimed at increasing housing availability, preserving affordability, and stabilizing the workforce. That process breaks down into the following areas:

County leadership and organizational response – Recognizing the severity of the shortage, the Walworth County Board of Supervisors has tasked the WCEDA with leading the housing initiative. To spearhead this effort, the EDA has hired Pam Carper as a full-time Housing Manager, responsible for coordinating programs, developer engagement, and municipal collaboration.

“Housing is no longer just an affordability issue; it’s an economic one,” Luberda said. “Without sufficient housing, we risk losing teachers, nurses, and first responders who are vital to our communities.”

WCEDA’s Housing Program Manager Pam Carper brings experience in workforce and affordable housing development, and her role allows the county to focus on strategic, coordinated action across municipalities.
Policy, incentives and workforce housing – The county is pursuing multiple strategies: zoning reforms to allow smaller lot sizes and multi-family housing; financial incentives such as TIF and grants for workforce housing development; partnerships with developers for targeted employee housing; and programs assisting essential workers with down payments or rental support.

County and municipal collaboration ensures that housing production aligns with workforce needs, while monitoring of home prices, rental rates, and construction permits allows officials to adapt strategies over time.
Housing rehabilitation and preservation – Programs preserve existing affordable units, including rehabilitation grants and low-interest loans for homeowners to maintain and improve their homes, preventing displacement and ensuring long-term housing stability.
Data tracking and community engagement – Officials have implemented tracking systems to monitor housing availability, pricing, and construction trends, along with surveys of employers and residents to understand workforce needs. Community meetings and forums help gather feedback from residents and local businesses to shape strategies.
Collaboration with municipalities – The county works closely with municipalities to identify suitable development sites, align zoning codes with housing goals, and provide technical assistance for municipal housing planning. Coordinated efforts aim to ensure new housing meets both workforce and community needs.