The housing slump nationwide has been one of the biggest reasons for the overall recession.
In at least parts of western Wisconsin, however, the housing industry is holding its own, and remains a good “investment” for any community.
Elliot Eisenberg, a senior economist with the National Association of Home Builders, discussed the findings of a study last week on the economic impact of single- and multi-family housing in La Crosse County.
The 405 single-family and 164 multifamily homes built in the county in 2007 will generate $92.8 million in revenue, compared with $88.2 million in costs, during the next 25 years, Eisenberg’s study concluded.
Revenue includes such things as payments for wages, materials, fees and taxes and ripple effects. Costs include such things as fire and police protection, parks and recreational opportunities, and roads.
“Housing does pay its way,” Eisenberg told the La Crosse Tribune. There also was somewhat encouraging news on other fronts of the housing picture.
Vicki Markussen, executive officer for a local housing association, said La Crosse area home construction is down from last year, but not as much as in other parts of the nation. The number of single-family homes sold so far this year in La Crosse County is down about 5 percent from a year ago, and the average sale price is up 4 percent.
Other studies show that real estate sales in the region as a whole, while hardly robust, have not been in free fall as is the case in some regions of the country. A Western Wisconsin Realtors Association report for Polk, Pierce and St. Croix counties showed closed sales of houses increased in September, after four months of declines. The media sales price of those homes was down 5.16 percent.
A report for Eau Claire showed decreased sales, but also showed that the area is considered one of the bargain areas for home sales in the nation, with a four-bedroom, 2,200 square foot home selling for around $145,000.
There are several reasons western Wisconsin real estate is keeping its head above water.
First, banks in the area have been responsible and conservative in their lending practices. That’s not to say that foreclosures are not up in the region, but they are not rampant, in part because of the prudent approach to lending by the financial institutions.
Realtors and builders have tried to keep their costs within reach of home buyers. Excessive fees and overly aggressive sales tactics have been avoided.
Consumers in the region also deserve credit. They resisted buying or building homes that were beyond their means. Many have remodeled rather than rush out to buy a new home.
This overall conservative approach, plus the fact that the population in the region tends to be more consistent rather than transient as in other parts of the country, have allowed western Wisconsin to avoid the boom or bust we’ve seen elsewhere in the country.
Going Green movements have helped the remodeling industry as people try to make their homes more energy efficient. The so-called Aging in Place movement — which showed baby boomers remodeling to change their homes to adjust to their changing lifestyle conditions — also has helped the remodeling industry.
Experts emphasized that if you have the resources to build or remodel it’s a great time to find a builder, as the cost of materials is down slightly from a year ago, and mortgage rates are still low.
It’s still not a rosy picture for housing in western Wisconsin. But, pockets of the region are more than holding their own, and performing better than many other regions of the country.
