RIVER FALLS — According to the 2026 Housing Needs Analysis, there is a demand for 1,650 general occupancy units to be built by 2035 in the City of River Falls.

Joe Hollman of Maxfield Research and Consulting presented the findings of the 2026 study at the May 2026 City Council meeting, which provided updates and further information from the 2018 and 2022 studies. Hollman said the population is expected to grow to 18,899 by 2035, with an average projected annual growth of 0.6%. The annual growth from 2010-2036 was 1.2%.

“We’re anticipating growth in the younger, the 25-34, 35-44 age groups, then again in the 45-54 age group, then with the strongest growth for that 75 and over population,” Hollman said. “That’s going to drive demand for rental housing for those younger age groups, first-time homebuyers, move up housing for those middle-aged cohorts then housing options for that 75 and older group as they age.”

The homeownership rate is 58%, up from 55% during the 2010 sentence. Hollman said that change stems from owned households increasing at a faster rate than rented houses. There was a 35% increase in family households since 2010 compared to 15% non-family household growth.

The average weekly wage in Pierce County is $927, and in St. Croix County is $1,050. Using those numbers, an affordable average Pierce County rent would be $1,205 and St. Croix County rent $1,365. Average rent in the City of River Falls for a one-bedroom apartment was $1,223, higher than the Pierce number but below St. Croix.

Home prices trail significantly behind the affordable price. An affordable home off the Pierce Salary is $158,000 in Pierce and $179,000 in St. Croix, with the median resale home price being $399,000 in the city.

“The rental costs in River Falls are fairly consistent with where the wages are,” Hollman said. “Even if you have two people in a household earning that average weekly wage, you wouldn’t be able to afford to purchase a home in River Falls at that median price.”

“Those new construction price points are unattainable for most, and then these rising home prices threaten future growth,” Hollman said. “People used to move to River Falls because of the lower price point. It was a little bit lower cost to purchase here than it was in say a Woodbury or east metro. Those numbers have flipped. People aren’t moving here for affordability as much as they used to, so that’s a threat to future growth.”

The city has averaged 164 new housing units per year over the last 10 years. There has been a slow down on detached single family home construction, with twin homes and multi-family trending upward. Over 50% of new housing over those years has been multi-family, with 57% being rental units.

Rental market rate vacancy is 3.2%, with affordable unit vacancy at 0.8% and student housing vacancy at 0.7%. Senior housing in all categories (affordable, market rate and assisted) are also all below the 5% vacancy benchmark.

“Equilibrium rental vacancy is considered to be 5%, so again, it’s a really tight rental market. Despite the increase in supply over the last several years, that supply has been getting absorbed,” Hollman said.

There is a demand for 1,650 general occupancy units in the city by 2035. That projected demand is categorized as follows:

• 546 detached single family
• 336 market rate rental
• 294 for sale other
• 259 affordable rental
• 215 subsidized rental

There is also a need for 1,200 units of senior housing.

“These numbers may seem daunting, and we realize that all of this housing will never be built, especially the affordable and subsidized stuff. Funding for those projects is limited, it’s competitive and it’s just really difficult to build. As a community, if you can even put a dent into the demand for affordable and subsidized, you have both general occupancy and senior, you should consider that a win,” Hollman said. “People want to move to River Falls. I heard that from basically everyone I talked to. The problem is, it’s a tight market, there’s pent up demand,” Hollman said.

The council then took time to discuss their plan of action, looking to dive into specific action plans during workshops and through committee meetings.

“The major takeaway for me is that affordable housing is very difficult with rapidly increasing prices, inflation, wages not keeping up with the cost of living, affordability pressures, constrained housing supply,” Alderperson Sean Downing said. “Many people are being locked out of housing, market renters and owners alike. It’s not just River Falls, it’s happening everywhere. We need to be innovative.”

Downing said the city should look into utilizing 99-year land trusts, where land ownership is through a non-profit, and leased to the owners of the buildings above. He said that strategy has seen success elsewhere.

Hollman was asked for solutions that have worked elsewhere, citing Rochester and Red Wing as cities that have had success with land trusts. He also said Habitat for Humanity is growing and now has the capability to create full subdivisions in some areas.

“It doesn’t feel good to barely have your head above water, but if we hadn’t been aggressive in our approaches with the community, with developers, council and Plan Commission and increased flexibility in the zoning,” City Administrator Scot Simpson said, “If you hadn't been willing to do that and actively involved, the data would look a lot worse.”

Annexation proposal

Senior Planner Harley Mehlhorn presented an annexation from the Town of Clifton into the city. The area is expected to be used for a housing development eventually, but no official proposal is on the table. The annexation would allow for a potential development to hook up to city utilities if it is eventually approved.

The request was for 55 acres at the corner of County Highway M and 1060th Street. The area is currently zoned agriculture, adjacent to agriculture and residential zoning districts.

“The proposed annexation area is contiguous with city boundaries. A change in future land use classification from UAB Mixed Use and UAB Medium Density Residential is consistent with the future land use map, and will allow for efficient development of the property,” Mehlhorn said. “Residential uses on the property are anticipated to be compatible with surrounding land uses.”

Multiple public commenters shared concerns, including the impact on surrounding property values. Mehlhorn said it is difficult to forecast property value changes, but they evaluate potential impact on quality of life of nearby residents.

Resident Lowell McCann of Clifton Township said the city should work with the nearby townships to see what impacts this development could have on both parties.
“The plan put forth here does not seem to look at the effect on the township roads. There’s a discussion of how the development will affect the county highway, but not the township,” McCann said. “The expectation of putting this commercial node at the corner describes putting it there because this is a main artery into the city. I would say it’s a secondary artery into the city, and that a commercial node at that corner of U and M would make more sense on the northern end of the corporate park.”

Simpson said property owners are the initiators of annexations in most cases in the state, and they have attempted to collaborate with the townships.

“I think you’re just not aware of the conversations. The city has formally requested conversations on boundary agreements with the Town of Clifton and the Town of River Falls on several occasions,” Simpson said.

The public hearing was the first reading of the annexation, so the item will return to the table in two weeks.