Property-value slowdown

Contact: Todd A. Berry
608.241.9789 or wistax@wistax.org
August 26, 2008

Increase in Value of Wisconsin's Property Smallest Since 1987
Commercial, Manufacturing Properties Outpace Residential

MADISON—Despite falling property values nationwide, the full market (equalized) value of Wisconsin real and personal property rose 3.3% this year. Compared to a 6.2% increase last year and 9.6% the year before, it was the smallest increase since 1987 according to a new analysis of state data from the Wisconsin Taxpayers Alliance (WISTAX).

Values in only 11 counties grew faster than they did statewide in 2007. In one, Barron County, values actually dropped 0.1%. Growth was fastest in rural and recreational areas of central Wisconsin and slowest in urban and suburban areas of the northwest and southeast.

Seven counties in northwest Wisconsin that previously enjoyed growth due to their proximity to the Twin Cities are now finding values have stagnated along with the metro economy there. [A complete list of Wisconsin counties with the fastest growing equalized property values (>5%) and the slowest (<3%) is shown at the following link County Equalized Values 2007]

Not all types of real estate fared the same. Appreciation of commercial (4.2%), manufacturing (4.3%), and agricultural (3.3%) properties exceeded that of residential property (2.8%). The value of existing residences rose less than 0.5%.

Compared to past years when farmland values often declined, the increase in the use value of agricultural land (3.3%) and agricultural forest land (8.1%) reflects a somewhat stronger farm economy.

Equalized values are used to apportion property taxes among various communities in a county, school, or technical college district, and to compute state aid to local governments, most notably school districts.

WISTAX is a nonprofit, nonpartisan, public-policy research firm celebrating 76 years of service to Wisconsin citizens.

For a copy of the WISTAX report, "Property-value slowdown," write: WISTAX, 401 North Lawn Ave., Madison, Wisconsin 53704; e-mail, wistax@wistax.org; or call 608.241.9789. o

(Editors' Note: An electronic version of this column is available at www.wistax.org.)

The Wisconsin Taxpayers Alliance, founded in 1932, is the state’s oldest and most respected private
government-research organization. Through its publications, civic lectures, and school talks, WISTAX aims to improve Wisconsin government through citizen education. Nonprofit, nonpartisan, and independently funded, WISTAX is not affiliated with any group—national, state, or local—and receives no government support.