By Shereen Siewert, Wausau Pilot & Review

Home prices in Wausau are continuing to increase, mirroring a national trend, according to data released last week.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 20.6% annual gain in March, up from 20.0% in the previous month. In Wausau, home prices have ticked sharply upward as well, with an increase of nearly 24% since April 2020, the data show.

“Those of us who have been anticipating a deceleration in the growth rate of U.S. home prices will have to wait at least a month longer,” said Craig J. Lazzara, Managing Director at S&P DJI.

Prospective homebuyers and renters across the United States have seen prices surge and supply plummet during the coronavirus pandemic. Amid these circumstances, about half of Americans (49%) say the availability of affordable housing in their local community is a major problem, up 10 percentage points from early 2018, according to a Pew Research Center survey.

Mortgages are becoming more expensive as the Federal Reserve has begun to ratchet up interest rates, suggesting that the macroeconomic environment may not support extraordinary home price growth for much longer, Lazzara said.

“Although one can safely predict that price gains will begin to decelerate, the timing of the deceleration is a more difficult call,” he added.

The typical home value of homes in Wausau is $192,876. This value is seasonally adjusted and only includes the middle price tier of homes. Wausau home values have gone up 14.2% over the past year.

Wausau rent prices are also on the rise, according to Zumper. Over the past month, the average rent for a studio apartment in Wausau increased by 10% to $1,100. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 1% to $945.

According to Pew, a range of factors are contributing to the financial challenges American homeowners and renters are facing in the housing market, including incomes that haven’t kept pace with housing cost increases and a housing construction slowdown. A surge in homebuying spurred by record low mortgage interest rates during the COVID-19 pandemic has further strained the availability of homes, the center reports.

In Wausau, members of the city’s Affordable Housing Task Force are seeking solutions including funding from the American Rescue Plan Act. Among the potential solutions discussed in May: providing short-term stipends to offset living expenses and possibly building additional units.

In addition to these steps, Sarah Watson, chair of the Affordable Housing Task Force, told Wausau Pilot & Review other options “would be giving landlords funds to upgrade units while keep them under fair market prices.”

The group is slated to share their suggestions with the City Council on June 14.