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Wisconsin IDEA
Insight • Data • Economics • Analysis
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Tracking Wisconsin's Economic Health
Encouraging Signs from Wisconsin’s Coincident Index
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Constructed by the Federal Reserve Bank of Philadelphia, the state coincident index is a composite of four measures that summarize a state’s economic condition in a single indicator. The economic measures used in constructing the index are 1) nonfarm payroll employment; 2) average hours worked in manufacturing by production workers; 3) the unemployment rate; and 4) the sum of wage and salary disbursements and proprietors’ income adjusted for inflation. The coincident index provides another means of tracking the direction of a state’s economy and can be used to identify recessions at the state level rather than relying on national economic cycles.
Wisconsin’s coincident index in June increased 0.9% over the index three months prior, and 2.2% over the last 12 months. Wisconsin was one of 40 states that experienced an increase in June, with its index increasing at a greater rate than its neighboring states. The June increase in Wisconsin’s index partially reflects a declining unemployment rate and an increase in nonfarm payroll employment compared to values three months ago. Accordingly, the index is somewhat influenced by the continuing strength of Wisconsin’s job market.
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Spend time at any backyard cook out this summer and the conversation will eventually turn to the high cost of housing. Indeed, according to the Zillow Home Value Index, the median value for homes in Wisconsin increased by 85% over the past eight years, or 8.0% annually, moving from $167,693 in 2016 to $311,591 in June of this year. Zillow estimated home values in Dane County increased by 77% overall, or 7.4% annually, over the same period, increasing to $438,450 from $247,251.
While there have been time periods in which home prices spiked, data from the Housing Price Project (HHP), which catalogs prices for 2.7 million homes advertised in U.S. newspapers in 30 cities between 1890 and 2006, indicates that the trajectory of home prices is neither consistently upward nor consistently smooth.
Using the HHP, researchers at the National Bureau of Economic Research found that real home prices experienced an annualized increase of 47% overall (4.9% annualized) between 1920 and 1928, and then fell by 27% overall (-2.0% annualized) between 1929 and 1935. Prices increased by about 27% (1.3% annualized) between 1935 and 1953, 21% (1.3% annualized) between 1953 and 1975, and 117% (3.6% annualized) between 1975 and 2006.
That brings us to today’s question. From 1890 to 2006 inflation averaged about 2.8% annually. After taking inflation into consideration, what was the average annual capital gain for a house from 1890 to 2006?
A. -1.2%
B. 0.9%
C. 2.8%
D. 4.7%
E. 6.1%
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Want to Host the 2025 Connecting Entrepreneurial Communities Conference?
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Accepting Applications Now
Wisconsin’s first Connecting Entrepreneurial Communities (CEC) Conference hosted over 200 people with over 60+ speakers and 10 local vendors. Interested in bringing this event to your own Wisconsin town? Host applications for CEC in 2025 are due September 15.
About the Conference
The Connecting Entrepreneurial Communities conference hosts a statewide conversation about how to promote entrepreneurship in Wisconsin’s small and rural communities. It gathers business owners, municipal leaders, financial lenders, economic development professionals, and community champions for programming about entrepreneurial ecosystem development on the local level.
CEC invites attendees to spend two days in a rural Wisconsin community and see for themselves a vibrant small-business sector. Local businesses host panels and presentations, and attendees have the chance to explore the town and network in between sessions. An annual event in many other Midwestern states, the CEC Conference was held in Wisconsin for the first time in 2024.
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Incentivizing Broadband Projects: Board of Commissioners of Public Lands
Thursday, August 15, 2024 | 12:00 pm - 1:00 pm (CST)
As communities are prioritizing broadband projects, incentivizing projects with the most need is one way to ensure these projects will get done. The Board of Commissioners of Public Lands offers one option for communities to consider.
This webinar will share how to go through the process of applying for the State Trust Fund Loan Program and how this can benefit your community beyond the funding itself. Case studies and examples of how communities have accessed these funds will also be featured.
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Immigration, Employment, and Entrepreneurship: A Legal Symposium for Wisconsin’s Workforce
Friday, September 20, 2024
Join us for a professional development training for business service providers who work with new immigrants and newcomers in Wisconsin, covering topics related to employment and entrepreneurship. Continuing legal education credit available.
The Rural Wisconsin Entrepreneurship Initiative will host a legal symposium for Wisconsin’s workforce at the WI Latino Chamber of Commerce in Fitchburg. This is a professional development event, led by the Law and Entrepreneurship (L&E) Clinic. This symposium will provide insights into enhancing service providers’ understanding of laws, regulations, and practical solutions concerning employment and entrepreneurship for new immigrants and undocumented workers. The training will cover topics relevant to employers, employees, job seekers, and entrepreneurs.
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How Ready are Owners for Business Succession and Transition?
This webinar shares findings from a recent survey of small businesses in Minnesota that explored business owner awareness, attitudes, aspirations, and preparedness for transferring their business when the time comes. This webinar also discusses the importance of business succession and transition planning and highlights what community economic development practitioners can do to support small businesses with guest presenter, Michael Darger.
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(WisBusiness.com - 6/26/2024)
(Capital Times - 6/15/2024)
(Institute for Business & Entrepreneurship - 6/5/2024)
(Wisconsin Newspaper Association - 5/28/2024)
(Public News Service - 5/10/2024)
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Equal Employment Opportunity & Affirmative Action Statements
An EEO/AA employer, the University of Wisconsin-Madison Division of Extension provides equal opportunities in employment and programming, including Title VI, Title IX, the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act requirements. Please make requests for reasonable accommodations to ensure equal access to our educational programs as early as possible preceding the scheduled program, service, or activity.
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