Midway findings of new study indicate need for housing in Sheboygan is greater than in 2021 study

SHEBOYGAN — A low vacancy rate and struggle to house workers evidenced in the city’s mid-stage progress report on a new housing study display Sheboygan’s dire need for more housing.

City of Sheboygan is partnering with Madison-based Redevelopment Resources to conduct a new housing study. It won’t be as robust as the 2021 Affordable Housing Market Study, but it will give a better picture of the area’s housing needs with updated data and current market conditions.

It could be completed by early or late summer, according to City Administrator Casey Bradley.

Several pieces of the 2021 housing study data are now outdated

The 2021 housing study projected the area could need 726 to 1,738 housing units by 2030, with a mix of rental and owner-occupied units. This projection, along with estimations for population and employment changes, was based on pre-pandemic data from 2018 and 2020.

Among projections, it estimated the city’s population would decrease to 47,389 by 2040, and the manufacturing industry would lose 2,110 positions, or decrease by 2.3%, by 2028.

Many of these data points have “changed significantly” since then, according to Bradley's Housing Study Requests for Proposal memorandum.

He said there are more job openings than housing units projected at the highest need in the 2021 study, given forthcoming changes at major employers, like Nemak's $18 million expansion and Acuity's plan to add 150 more positions, more than 80 of which would be locally hired.

Bradley also said in the memo the 2021 housing study seemed to heavily rely on information from the 2018-2028 Employment Projections for Bay Area Industry, without consulting with large employers in the area. This was likely because of COVID-19, he said.

Leading up to the RFP memo dated Nov. 10, 2023, Bradley shared various businesses projected needing about 440 new workers over the next several years. One employer said it could need 600 more workers.

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Here are some takeaways from the mid-stage progress report for the new housing study

• Only 34 units were available to rent in the city as of Jan. 23. Sheboygan would need to have more than 575 units available at a given time to have an average healthy vacancy rate.

• Sheboygan’s vacancy rate for rentals is 1%, whereas a healthy rate in a community is 5%-10%.

• Specific employers may need between 850 and 1,000 new employees in the next several months, although there isn’t enough housing for them.

New study consulting with major employers in Sheboygan County

The No. 1 thing the city is hearing from employers is even if they can hire more workers, there isn’t a place for them to live, Bradley said.

“Seeing 34 actual units available is right in line with what we're hearing from our businesses — that there is nothing available, and that's concerning because that's affecting their operations. It's affecting our community members, it's affecting people to be able to come in and be a part of our community,” he said.

Employers like Sargento Foods — which is a contributor to the Sheboygan County Economic Development Corporation’s Forward Fund, along with Johnsonville, Kohler Company and Masters Gallery Foods — expect to bolster their workforce.

There are about 100 vacant positions at Sargento facilities in and near Sheboygan County alone, according to CEO Louie Gentine.

“Certainly, we see the issue as it stands today. I think most importantly, why we're feeling investing in housing is important is really more for the future,” Gentine said. "Even though our processes and how we manufacture continues to change, the need of, you know, human capital is always going to be there."

Executive Director for Partners for Community Development Karin Kirchmeier said various communities would benefit from a robust stock of affordable housing.

“I think that Sheboygan, specifically, we have an aging population who needs housing that needs to be affordable. We have a strong manufacturing community, (and) their housing needs stay affordable,” Kirchmeier said. “Not everybody can afford market rates. So really, ‘What is affordable to our communities, specifically, and are we meeting the needs?’”

She said she thinks “Sheboygan is on the right track,” though, making sure to offer a mix of market-rate and affordable housing to current and prospective residents.

Several projects in the works include Gateway Apartments, which could break ground in May to bring 44 affordable apartments near Erie Avenue; View 14 Apartments that will bring a mix of 48 market-rate and affordable units that could be done by summer; and Berkshire Apartments, which will bring 101 apartments and townhome units that could be done sometime this year. View 14 and Berkshire apartments are near Indiana Avenue.

Contact Alex Garner at 224-374-2332 or [email protected]. Follow her on X (formerly Twitter) at @alexx_garner. 

This article originally appeared on Sheboygan Press: New Sheboygan housing study finds need is greater than in 2021 study