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WCEDA's Housing Update

March 2026

Contact: Pam Carper

Phone: 262-564-3215
Email: pam@walworthbusiness.com

walworthbusiness.com/housing

 

Building Together: A Practical Path to Solving the Housing Shortage

Communities across the region are facing the same challenge: how to increase housing supply without taking on unnecessary financial risk. Builders are navigating rising costs and uncertainty, while municipalities are balancing growth with infrastructure and budget constraints.


What if there were a way to move forward—together?


A collaborative development model offers a low-risk, high-impact approach to jumpstarting housing projects. By involving multiple builders in a single development and positioning the municipality as a facilitator, communities can unlock opportunities that might otherwise remain stalled, and create housing that truly reflects local needs.  By distributing both risk and participation, communities can move projects forward with greater confidence and flexibility.


At its core, this model is about partnership. When municipalities and builders work together, they don’t just build homes—they strengthen the long-term future of the community and its residents.


 

A Shared Approach to Shared Challenges


Instead of placing the full burden on a single developer or builder, this model distributes responsibility across multiple participants. Builders gain access to opportunities with reduced upfront risk, while municipalities can guide development in a way that aligns with local priorities.


The result is a more resilient, flexible approach to delivering housing.


How It Works

The process begins with identifying a viable site—often an infill or underutilized parcel that is ready or nearly ready for development.


From there, builders and municipal leaders collaborate to:

  • Evaluate zoning flexibility and appropriate lot sizes
    Review infrastructure needs and available utilities
  • Consider access to roads, schools, and employment centers
  • Design a project that fits both the neighborhood and current market demand

Whether the right mix includes single-family homes, duplexes, or side-by-side units, the focus remains the same: right-size the project for the community

“Builders gain access to opportunities with reduced upfront risk, while municipalities can guide development in a way that aligns with local priorities."

The Municipality’s Role: Enabling Progress
In this model, the municipality plays an active but nontraditional role—helping reduce barriers and keep projects moving efficiently.

 

This may include:

  • Offering land at cost
  • Reducing infrastructure-related expenses
  • Streamlining zoning, platting, and approvals using in-house expertise
  • Waiving or reducing impact and permitting fees
  • Removing the need for developer-backed letters of credit

By taking on this facilitating role, municipalities can lower costs, increase transparency, and create an environment where projects are more likely to succeed.


The Builder’s Role: Structured and Scalable
Builders participate once the framework is in place and pricing is established. Their involvement is clearly defined, allowing for predictability and flexibility.

Typical participation includes:

  • Reserving lots with nonrefundable earnest money
  • Closing on lots after public improvements are completed
  • Receiving building permits at closing
  • To keep capital requirements manageable, builders can scale their involvement. For example, committing to a small group of lots at a fixed price allows them to:
  • Secure their position in the project
  • Manage cash flow effectively
  • Build at a pace that aligns with their capacity

“By embracing collaboration, communities can reduce financial risk, accelerate development, and create housing that truly serves their residents."

Why It Works

  • This model creates momentum where it’s often hardest to find.
  • Municipalities activate land that may otherwise sit idle
  • Builders—including smaller or newer firms—gain access to attainable opportunities
  • Communities benefit from housing that reflects real demand

Risk is also minimized. If a builder is unable to close, the municipality retains control of the lot and can reassign it, ensuring the project continues without major disruption.

 

Moving Forward—Together

 

Addressing the housing shortage doesn’t require choosing between growth and caution. With the right structure, communities can achieve both.


The housing shortage is a complex challenge, but the solution doesn’t have to be.

 

By embracing collaboration, communities can reduce financial risk, accelerate development, and create housing that truly serves their residents. This approach is practical, scalable, and rooted in shared success.

 

Now is the time for municipalities, builders, and community leaders to come together and rethink how housing gets built. Identify opportunities. Start the conversation. Build partnerships.

 

Because when we build together, we don’t just add homes—we create stronger, more resilient communities.

“Because when we build together, we don’t just add homes—we create stronger, more resilient communities."

 

 

 


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Walworth County Economic Development Alliance | 400 County Road H | Suite 105 | Elkhorn, WI 53121