MADISON, Wis. -- Residential property values in Wisconsin increased 3 percent last year overall, while the worth of existing homes increased just 1 percent, according to a new report.

The increase is the smallest in 21 years and will make local budgets even tighter since property values help determine how much can be collected in property taxes.

Still, Wisconsin property values held better than those nationwide. The 1 percent growth in existing residential property in Wisconsin compares to an average decrease of half a percent nationwide.

The Office of Federal Housing Oversight had expected Wisconsin's existing properties to go up in value by 1.8 percent.

The report shows commercial and manufacturing property values each increased 4 percent last year.