— Wisconsin needs to build about 140,000 housing units by 2030 to meet current estimates for housing needs.
But that number could be more than 200,000 if the state’s working-age population grows.
That’s according to a new report from Forward Analytics, the research arm of the Wisconsin Counties Association. While the lower number is likely within reach, Director Dale Knapp said hitting the higher figure would be difficult “even in the best of times.”
In an interview Friday, Knapp explained high interest rates and a recent slowdown in new homebuilding in Wisconsin add to the problem.
“That’s really a challenge because our housing needs are going to continue to grow, and we really need to be building during the entire decade and not have these big declines,” he said.
Forward Analytics in an earlier report projected the state’s working-age population would fall by 130,000 by 2030 if demographic trends persist. If that expectation holds true, Wisconsin will need 140,000 more housing units by that time to maintain the status quo.
But if the state is able to address its projected decline in residents aged 25 to 64 with increased migration, this need could grow by up to 72,000 additional units. And with other factors at play, such as young adults living with their parents looking to move out, Forward Analytics says addressing “all of the state’s potential housing needs” would require at least 227,000 more units.
Knapp noted the state built about 260,000 housing units in the 1990s, about 192,000 between 2000 and 2010, and 150,000 from 2010 to 2020.
“In terms of trend, we’re going in the wrong direction,” he said.
To meet projected demand, Wisconsin needs more housing lots, Knapp added. But the state’s rate of lot creation has fallen significantly in the past two decades. In the early 2000s, the state was adding between 12,600 and 20,600 lots per year, the report shows. After falling to just 1,293 in 2010, that number has risen to 5,340 in 2020 — only about a third of the average from 2000-2006.
And while it would be easier to meet the projected need for housing units with more apartments rather than single-family homes, Knapp said that wouldn’t match the buying behaviors of adults in their 30s and early 40s.
“When we think about that workforce problem, about attracting workers here, our strength has always been in that 30-45, 30-55 age group,” he said. “To attract them here, primarily that age group is going to be looking for single-family homes.”
See the full report: https://www.wisbusiness.com/wp-content/uploads/2023/01/Forward-Analytics-A-Housing-Hurdle.pdf
— New business formation contributes more to job growth than existing companies in Wisconsin, according to a recent report from the UW-Madison Division of Extension.
The report is from Steven Deller, a professor in the university’s Department of Agricultural and Applied Economics.
Using Census Bureau data from between 1978 and 2020, he found new business formation created 86,321 jobs per year on average, while existing businesses “shed or lost” 59,945 jobs — resulting in an average annual gain of 26,376 jobs.
“Thus, for any given year between 1978 and 2020 new business formation drove job growth in Wisconsin,” he wrote. “This is true not only for the state as a whole but also for metropolitan and nonmetropolitan Wisconsin.”
Out of the 43 years included in the analysis, existing businesses had positive net job growth in just three: 1978, 1979 and 1984. In every other year, existing companies lost more jobs than they added, the report shows.
Deller notes that existing businesses “should not be ignored,” as they added 187,071 jobs per year on average during the study period. But they also lost 247,016 jobs annually, meaning the state would be losing nearly 60,000 jobs per year without new business creation.
“The policy implications are clear: greater attention must be paid to new business formation if job growth is the goal of policy,” Deller wrote.
See the full report: https://economicdevelopment.extension.wisc.edu/2023/01/03/new-business-formation-driver-of-job-growth-in-wisconsin/
— Gov. Tony Evers has issued an executive order declaring an energy emergency due to prolonged “severe winter weather.”
The order aims to address the impacts these conditions have had on distribution of residential heating fuel such as oil and propane.
“Getting residential heating fuel like propane and heating oil moving now to those who need it will help our neighbors remain safe as we enter the next few months of winter,” Evers said in a release.
Under the order, commercial vehicle operators obtaining and transporting residential heating fuel are exempt from certain federal and state restrictions on hours of service.
It also states that no ill or fatigued drivers will be required to operate a vehicle under this change, and drivers that need rest will get at least 10 consecutive hours off before being required to return to work.
The declaration will remain in effect for 30 days or for as long as drivers transporting home heating fuel are assisting with the emergency, according to the order.
See the full order here: https://content.govdelivery.com/attachments/WIGOV/2023/01/07/file_attachments/2372501/EO183-%20Energy%20Emergency.pdf
— An assistant professor of computer science at Marquette University is getting a $2.6 million federal grant for an effort to train more students in cybersecurity.
Debbie Perouli is getting this funding from the National Science Foundation for a CyberCorps Scholarships For Service program called CyberWIN. Along with providing several training programs for 16 students, her team will also be conducting a study to evaluate and find ways to improve such programs.
According to Perouli, these programs aim to meet the growing cybersecurity needs of federal, state, local and tribal governments.
“We will seek to uncover the high-impact practices that increase students’ commitment and realize any effect that personal experiences may have on determining them,” she said in a release. “Our framework can then be adopted by any institution, as it relies on student self-reflections that capture the whole educational experience through rich, multi-dimensional data.”
See more on the project here: https://www.wispolitics.com/2023/marquette-university-computer-science-professor-awarded-2-6-million-nsf-grant-to-train-next-generation-of-cybersecurity-professionals
<br><b><i>Top headlines from the Health Care Report … </b></i>
— Researchers at UW-Madison are exploring the possibility of using a psychoactive compound called psilocybin to treat drug addiction.
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— The Wisconsin Technology Council is calling for entrants to this year’s Wisconsin Governor’s Business Plan Contest to apply by the end of the month.
In a recent column, Tech Council President Tom Still wrote that “innovation and opportunity can spring from hard times,” pointing to the rising interest rates, inflation and supply chain disruptions of the past year.
“Providing an outlet for some of that creativity to get noticed is the goal of the annual Wisconsin Governor’s Business Plan Contest,” he said.
Since launching in 2004, this contest has received 4,450 applications from 330 different communities in the state. Still says about $2.5 million in cash and service prizes have been awarded, with around 475 finalists going on to receive at least $300 million in grants and investments.
Plus, startups in the contest have a “survival rate” of 77 percent, which is twice as high as the national average for early-stage companies, according to Still.
See more on the contest: https://wisconsintechnologycouncil.com/insidewis-governors-business-plan-contest-can-help-highlight-innovation-during-tough-times/
#TOP STORIES#
# UAW workers reject CNH offer, extending 8-month strike
# Fox Valley, Green Bay leaders push for Amtrak line to Milwaukee
# FDA OKs pharmacies to provide abortion pill, but in Wisconsin things are more complicated
#TOPICS#
# AGRIBUSINESS
– Wisconsin dairy farm losses continue to mount even as milk prices rise. What’s next?
– 76th Alice in Dairyland applications open through Feb. 3
– ARM Services hosts 13th Annual Winter Ag Conference in Menomonie
# BANKING
– CCFBank opens in former King Street Kitchen location in La Crosse
# ECONOMY
– Uncertainty looms large: Milwaukee real estate execs do business in the space between cautious and optimistic
# EDUCATION
– Marquette professor awarded $2.6 million grant for cybersecurity training
# HEALTH CARE
– ‘You’re treated like a criminal’: Wisconsin eyes fixes for emergency mental health system
– GE HealthCare hires former Amazon exec, CDC officer to lead tech strategy that includes AI efforts
# LEGAL
– Inter-Med sues former employee, alleges trade secrets were shared
# MANUFACTURING
– Badger Meter acquires U.K.-based water monitoring solutions company
# POLITICS
– Finance committee blocks $15.5M conservation purchase
– 2 freshmen revive Wisconsin Legislature’s socialist caucus
# REAL ESTATE
– Fleet Farm tries again to build store near I-94 in Kenosha County
– See Compass’ new Bayside residential real estate office and what it means for Wisconsin
– Large Howard headquarters site sold at auction for $4.5 million
# TECHNOLOGY
– Gov. Evers says he will ban TikTok on state devices next week
# TRANSPORTATION
– WisDOT secretary Thompson elected AASHTO vice president
– Appleton International Airport had a record year in 2022. It hopes to build on that momentum this year.
# PRESS RELEASES
<i>See these and other press releases:
https://www.wisbusiness.com/press-releases/ </i>
Dept. of Natural Resources: Accessible cabin reservations open Jan. 10
Fox Cities Chamber of Commerce: Offering free webinar for Fox Cities Restaurants
