2019 Housing Affordability Analysis

Cover Housing Affordability Analysis

The Housing affordability analysis includes the current housing stock, housing occupancy types, projected housing needs, addresses how the City is providing a variety of housing choices for all income levels, and considerations to cut the time and cost for a new residential development by 20%. Verona’s current housing mix is approximately 66% single-family and 34% multi-family. The total number of dwelling units needed by 2030 and the acres to support those units depends on the Plan Commission and City Council’s desired ratio of housing types.  

Housing demand is a function of income, employment and household growth within the region due to employee commuting patterns. Housing affordability in Verona should not only look at whether housing is affordable for residents, but also if is it affordable to employees in the region.The median household income in the city of Verona is $87,536 according to American Community Survey 5 Year Income estimates. An affordable home purchase price for a median income Verona household is $294,121.  According to a local residential real estate firm, the median home sale price in 2019 is estimated to be $322,600. The median sale price of Verona real estate isn’t affordable for a median Verona household. Based on the estimated fair market value of the 3,303 owner-occupied single-family homes in Verona, only 40% of such units are affordable for median income households (Table 10, Appendix B).

The fee report must include the following fees imposed on new residential construction, remodeling, and/or development: building permit fee, impact fee, park fee, land dedication requirement, fee in lieu of land dedication, plat approval fee, storm water management fee, and water or sewer hook‐up fee.  While these fees are re-evaluated each year, the majority of the fees have remained stagnant over the last couple of years. The City of Verona is about average in their fee rates compared to other municipalities in the region. Some of the fees listed are set by other agencies in the region such as Madison Metropolitan Sewer District (MMSD). One unknown for a developer is the actual rate billed to the developer when the City Engineer reviews plans as this can become costly depending on the quality of the submitted plans. The City Engineer only bills their time that they actually worked on the project.

Housing Fee Report

Cover of Housing Fee Report - FINAL