Population
The Madison Region's residential base numbered just over 965,000 in 2006 (17% of Wisconsin's total population) growing by nearly 61,000 residents since the 2000 census. The region's 6.7% population growth rate was almost twice the state's 3.6% growth rate over the same six-year period. In fact, the region's population growth was so significant that it was equivalent to nearly one-third of Wisconsin's total population growth.
The eight-county region, for all intents and purposes, is the most dynamically growing region in Wisconsin blending population and job growth due to a diversifying, growing economy as well as having many desirable amenities and "quality of life" aspects. Residential growth is moderate to strong throughout most of the region particularly in the three-county Madison Metropolitan Statistical Area (Dane, Columbia and Iowa counties). Dane County, the region's economic hub, comprises one-half of the region's population and has added more residents than any of the other 71 counties in Wisconsin. Dane is projected to maintain its volume population growth lead for years to come making the MCR one of Wisconsin's premier economic regions.
The eight-county region, for all intents and purposes, is the most dynamically growing region in Wisconsin blending population and job growth due to a diversifying, growing economy as well as having many desirable amenities and "quality of life" aspects. Residential growth is moderate to strong throughout most of the region particularly in the three-county Madison Metropolitan Statistical Area (Dane, Columbia and Iowa counties). Dane County, the region's economic hub, comprises one-half of the region's population and has added more residents than any of the other 71 counties in Wisconsin. Dane is projected to maintain its volume population growth lead for years to come making the MCR one of Wisconsin's premier economic regions.
Housing
The region's estimated housing base of 414,000 units increased by almost 38,000 units between 2000 and 2005 (+10%). The region's housing stock differs somewhat compared to Wisconsin's in terms of its "use". Wisconsin is known to have a considerably higher than national average share of seasonal/recreational housing (6.3% of its total housing units ). Only a single MCR county, Sauk County, exceeds the statewide seasonal housing share as most regional counties are not as seasonally volatile in terms of its population base, and thus have low shares of seasonal/recreational housing.
Regional home sales through the first three quarters of 2007 are down approximately six percent compared to 2006 though the market could still be characterized as least somewhat resilient as national sales numbers have been much more sluggish in comparison. The estimated median MCR home sales price was $185,600 through Q3/2007, which is approximately $1,300 higher than the estimated price through the first three quarters of 2006 (+0.7%).
Housing growth in the Madison Region has mirrored its expanding residential base exceeding statewide growth between 2000 and 2005 and given the region's projected, robust population growth, the region should continue to post better than average housing growth. Dane County, alone, added 23,000 housing units over this five-year period, which was almost twice the numeric growth of the county adding the second highest number of housing units.
Regional home sales through the first three quarters of 2007 are down approximately six percent compared to 2006 though the market could still be characterized as least somewhat resilient as national sales numbers have been much more sluggish in comparison. The estimated median MCR home sales price was $185,600 through Q3/2007, which is approximately $1,300 higher than the estimated price through the first three quarters of 2006 (+0.7%).
Housing growth in the Madison Region has mirrored its expanding residential base exceeding statewide growth between 2000 and 2005 and given the region's projected, robust population growth, the region should continue to post better than average housing growth. Dane County, alone, added 23,000 housing units over this five-year period, which was almost twice the numeric growth of the county adding the second highest number of housing units.
Labor Market
The region's labor force totaled 565,000 participants in 2006--equivalent to 18.4% of the state's labor force. The region's annual average unemployment rate was 4.0% in 2006, which was significantly lower than both Wisconsin's (4.7%) and the nation's (4.6%). The regional labor force participation rate (the percentage of all residents ages 16 and older that are working or actively seeking work), at 74.3% in 2006, was considerably higher than both the statewide and national rates of 70.0% and 66.2%, respectively.
The unemployment rate and participation rate will likely remain stable in 2008. Viewing longer term, the region's labor force should continue to grow moderately throughout the remainder of the decade, especially in the Madison MSA, tied to its robust population growth as well as having an expanding job market. Longer-term challenges to regional workforce growth resemble those postulated nationally. These challenges are mainly demographic in nature particularly when referring to the oft-cited discussion of an aging population, which is a national issue, even international, rather than only being relegated to the upper Midwest. The region's age composition skews younger than the state's so it is likely that the region's workforce is currently younger than average, too.
The unemployment rate and participation rate will likely remain stable in 2008. Viewing longer term, the region's labor force should continue to grow moderately throughout the remainder of the decade, especially in the Madison MSA, tied to its robust population growth as well as having an expanding job market. Longer-term challenges to regional workforce growth resemble those postulated nationally. These challenges are mainly demographic in nature particularly when referring to the oft-cited discussion of an aging population, which is a national issue, even international, rather than only being relegated to the upper Midwest. The region's age composition skews younger than the state's so it is likely that the region's workforce is currently younger than average, too.
Economy
Despite the recent downcast news in terms of the 2008 national economic outlook, it is not unreasonable to believe that the region will continue to measure faster than average economic growth based upon items mentioned earlier in the synopsis, namely its faster population and job growth and its highly-engaged workforce. Past economic cycles have shown the greater Madison area to be rather resilient in times of national downturn because its industry composition is heavier in employment that tends not to follow cycles that often affect areas with high shares of goods-producing sectors.
The estimated value of the regional economy in 2006 was approximately $42 billion accounting for approximately 19% of the state''s total economic activity. The region's gross product is equivalent to about $44,000 per resident compared to $41,000 statewide. The Madison MSA anchors the region with a gross metropolitan product of approximately $31 billion. The Janesville MSA (Rock County) gross metropolitan product was $4.5 billion.
The Madison MSA gross product has risen 27% between 2001 and 2005 compared to statewide growth of 19%. The Janesville MSA gross product grew 15% over this period. The highest contributing industries to the region's economy are state and local government and education, healthcare, insurance and other financial activities, wholesale trade, nonstore retail trade, and a variety of manufacturers ranging from those producing automobiles and other transportation equipment, food processors, plastics producers.
Employment earnings are the most significant portion of personal income, and thus, are a dramatic driver of overall economic activity. The region's overall wages per job are higher than the statewide average propping higher amount of economic activity per worker and per capita.
The estimated value of the regional economy in 2006 was approximately $42 billion accounting for approximately 19% of the state''s total economic activity. The region's gross product is equivalent to about $44,000 per resident compared to $41,000 statewide. The Madison MSA anchors the region with a gross metropolitan product of approximately $31 billion. The Janesville MSA (Rock County) gross metropolitan product was $4.5 billion.
The Madison MSA gross product has risen 27% between 2001 and 2005 compared to statewide growth of 19%. The Janesville MSA gross product grew 15% over this period. The highest contributing industries to the region's economy are state and local government and education, healthcare, insurance and other financial activities, wholesale trade, nonstore retail trade, and a variety of manufacturers ranging from those producing automobiles and other transportation equipment, food processors, plastics producers.
Employment earnings are the most significant portion of personal income, and thus, are a dramatic driver of overall economic activity. The region's overall wages per job are higher than the statewide average propping higher amount of economic activity per worker and per capita.
Did you know?
The Greater Madison metropolitan area was named in the Top 10 metro areas for income growth by BizJournals.com. "Local PCI has risen 160 percent since 1985, dwarfing the nationwide pace of 134 percent," according to the BizJournals 2007 report.
In addition, economist William Fruth ranks Madison (Dane County) as having the nation's eighth strongest economy among 363 metropolitan areas, and Baraboo (Sauk County) as seventh among 576 micropolitan statistical areas.
In addition, economist William Fruth ranks Madison (Dane County) as having the nation's eighth strongest economy among 363 metropolitan areas, and Baraboo (Sauk County) as seventh among 576 micropolitan statistical areas.
New! Economic Outlook
The Wisconsin Department of Revenue has just released its February 2008 Wisconsin Economic Outlook. The outlook contains a forecast of the Wisconsin and the U.S. Economy, year-to-date Revenue Collections through January of fiscal year 2008, and a Special Report on the Economic Stimulus Package.