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Still hot: Madison home values rise for seventh year in a row
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Still hot: Madison home values rise for seventh year in a row

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With growth in commercial property again leading the way, Madison real estate values increased 6.6% over last year, according to new city assessments released Friday, with the value of the average single-family Madison home rising yet again, by 4.9% to $315,200, a new high.

The rise in home values wasn’t as robust as in 2019, when single-family home assessments jumped an average of 5.7%, but it still marks the seventh straight year of rising values for Madison homes. It’s the smallest increase in single-family home assessments since 2016, when values climbed 3.5% over the previous year.

The 6.6% overall increase in property assessments was slightly better than last year’s 6.4% increase, but was not as robust as the 7.4% increase of two years ago.

Still, that’s the kind of steady growth that City Assessor Michelle Drea said should help the city weather a 2020 economy that has taken blows from the COVID-19 pandemic.

“With that stable, consistent growth, that should provide a level of hope for our recovery,” Drea said. “Our economic foundation is very strong.”

She said, though, that it’s too difficult and a little too early to predict what the future holds for property values.

Michelle Drea

Drea

Assessments are usually announced in April but were delayed for two months due to the pandemic. The city assessor’s office, while still operating, has been closed to the public. Assessment postcards were mailed Friday. Assessments are also now available to look up online at the city assessor’s website.

The value of commercial property, which includes everything from multi-unit apartment buildings to office and retail buildings, rose by 8.6%, according to the new assessments. The largest proportion of commercial property by far is a catch-all category that excludes apartment buildings, and that grew in value by 8.6%. But leading all commercial buildings in percentage of growth was the category of 17- to 50-unit apartment buildings, which grew in value by 11.3%.

Assessments, which form the basis for property tax bills that will be issued in December, are based on 2019 property sales and other data and serve as the basis for tax collections. An increase in property values doesn’t necessarily correlate to an increase in tax bills because the city and other governmental units still must set budgets and tax rates later this year.

Virus effect unknown

Mayor Satya Rhodes-Conway said the economic effects of withstanding the COVID-19 pandemic, which caused unemployment on a scale not seen in Madison in decades, aren’t yet visible in this year’s assessments, though she said the city’s strong economic base will help it withstand the downturn caused by the pandemic.

“The market data from 2019 that is reflected in our 2020 assessments confirms the strength of Madison’s economy before the onset of the global pandemic,” Rhodes-Conway said.

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“The severe and widespread economic effects of containing COVID-19 are not yet reflected in these property assessments,” she said. “The solid economic foundation reflected in the 2019 market data should help sustain us through the difficult years ahead and set the stage for rebuilding our economy in new ways for the benefit of all Madison residents.”

New construction in 2019 totaled $630 million, an increase from $606 million in 2018. Most of the new construction increase was in commercial real estate, at $392 million, with $195 million in new single-family homes. The banner year for new construction remains 2016, which saw $750 million in new construction.

The commercial new construction figure is down slightly from 2018, while new single-family home construction rose by $30 million.

That new construction figure and the 2% ratio of total city property value it represents is important because it’s part of the formula that helps determine how much the city can increase its property tax levy under state-mandated levy limits, said David Schmiedicke, city finance director.

But as the economic effects of the pandemic affect new construction, which could be delayed by a year or two, “I expect that number will drop in future years,” Schmiedicke said. Any ripple effect on property values could take a few years to manifest, he said, similar to the way the impact of the 2008 financial crisis affected city property values.

But Drea said one indicator — property transfers — has rolled on steadily throughout the year, slowing only for a “partial pause” for a week or two.

“But since then it’s picked right up,” she said.

Smallest, largest gains

Among single-family home assessments, the Langdon Street area Downtown saw the lowest increase in the city at 0%, followed closely by the Burr Oaks-Lincoln School area, on the city’s South Side, which increased by 0.1%. The East Broadway area on the city’s Southeast Side, north of the Beltline and containing a lot of commercial and public property around Agriculture Drive, increased by 0.1%. An area north of Siggelkow Road and south of the Beltline which contains Owl Creek Park, also on the city’s Southeast Side, saw a 0.2% increase.

Other assessment areas that were below a 1% increase included Hawks Landing, Newbury Heights, Summit Woods, Sunset Hills, Brittingham Park and Richmond Hill.

The biggest gainers in assessments were new developments Woods Farm, with a 38.4% increase, and The Village at Autumn Lake, with a 14.8% increase. Both are on the Far East Side and are transitioning from rural to residential.

Among the largest gainers in established areas are Lapham School-Breese Stevens, which has seen much development, and Wil-Mar-Orton Park, both with 9.9% increases. Others include the Meadowood West, Elvehjem-Acewood and Woodward areas, all with 9.2% increases; Atwood-Winnebago, 8.8%; Cardinal Glen-Birchwood-1,000 Oaks, 8.7%; Tenney Park, 8.2%; and Olbrich Park-Cottage Grove Road, 7.9%.

The most expensive homes in Madison on average remain in the Spring Harbor area on Lake Mendota, where assessments average more than $1.1 million, while the least expensive remain in the Burr Oaks-Lincoln School area and average $145,500.

City of Madison home assessments 2020

The average value of a single-family home in the city of Madison increased 4.9% for 2020, the seventh straight year of solid increases. The average home in Madison is now assessed at $315,200.

Area Avg. Value 2019 Avg. value 2020 % Change
Far West
Spring Harbor-Indian Hills-Mendota Beach Heights-Thorstrand $ 367,000 $ 373,000 1.6%
Faircrest-University Highlands 367,200 378,700 3.1%
Mohawk Park, Englewood-Old Middleton Rd-Camelot 274,200 280,400 2.3%
Highlands-Skyline 717,900 743,900 3.6%
Parkwood Hills 398,700 419,800 5.3%
Walnut Grove/Sauk Creek 363,800 376,400 3.5%
Glen Oak Hills-Crestwood-Merrill Crest 267,700 276,600 3.3%
Junction Ridge/Sauk Heights/Willows 396,900 420,700 6.0%
Oakbridge 274,200 280,000 2.1%
Saukborough-Woodland Hills 404,400 429,700 6.3%
Wexford Village-Sawmill-Longmeadow 356,700 379,000 6.3%
Blackhawk/Greystone 625,200 640,000 2.4%
Cardinal Glen/Birchwood/1000 Oaks 331,700 360,500 8.7%
Tamarack 266,200 275,200 3.4%
South West
Meadowood 223,300 237,700 6.4%
Orchard Ridge 272,100 291,500 7.1%
Muir Field West 256,900 275,500 7.2%
Highland Village/West Towne Area 238,400 251,500 5.5%
Green Tree 269,300 288,800 7.2%
Westview Hills 468,900 487,700 4.0%
High Point Estates 478,300 497,500 4.0%
Meadowood West 238,000 259,800 9.2%
Heather Downs-Park Ridge Heights 219,300 235,300 7.3%
Putnam-McKee 262,900 279,600 6.4%
Valley Ridge/Mid Town Commons 308,600 321,700 4.2%
Fieldstone 269,400 283,700 5.3%
Hawks Landing 591,800 593,700 0.3%
Stone Crest Estate/Hawks Creek 350,100 365,100 4.3%
Hawks Woods 328,100 349,700 6.6%
Nesbitt Valley 291,900 303,900 4.1%
Ice Age Falls 338,200 355,900 5.2%
Country Grove/Ice Age Ridge 356,000 367,600 3.3%
Linden Park/Pine Hill Farms/Sugar Maple/Hawks Crossing 359,100 379,200 5.6%
Newbury Heights 305,300 305,900 0.2%
Hawks Meadow/Hawks Ridge/Hawks Valley 430,900 463,600 7.6%
Near West
Hill Farms 379,300 390,700 3.0%
Segoe-Mineral Point Road (Lincoln Hills) 282,800 289,700 2.4%
Nakoma 522,300 538,700 3.1%
Westmorland 341,600 360,100 5.4%
Odana-Midvale Heights-Tokay 321,800 332,000 3.2%
Summit Woods 269,700 271,500 0.7%
Midvale Heights 312,400 326,300 4.4%
Midvale School-Westmorland 341,300 361,400 5.9%
Findlay Park-Quarrytown 289,300 299,600 3.6%
Midvale Heights-Odana 334,200 346,800 3.8%
Sunset Hills 528,800 531,200 0.5%
West Beltline-Seminole Highway 190,100 204,200 7.4%
Sunset Village-Hilldale 299,500 316,400 5.6%
Sunset Village 338,200 356,700 5.5%
Sunset Woods-Forest Hills 332,600 350,800 5.5%
West Central
Dudgeon-Monroe 374,900 395,600 5.5%
Westlawn-Randall School (West High) 484,200 509,500 5.2%
Vilas-Longfellow School 323,500 344,800 6.6%
University Area 356,400 366,500 2.8%
Langdon Area 405,200 405,200 0.0%
Near West (Square) 329,600 331,900 0.7%
Near East (Square) 311,700 313,900 0.7%
University/Breese Terrace 440,300 450,500 2.3%
West High-Hoyt Park 432,100 446,200 3.3%
University Heights 644,400 667,900 3.6%
Brittingham Park 262,200 263,500 0.5%
Vilas-Edgewood Avenue 541,500 559,300 3.3%
Near South
Waunona 248,000 257,400 3.8%
Bay Creek 268,500 280,100 4.3%
Burr Oaks-Lincoln School 145,300 145,500 0.1%
Bram's Addition 151,900 159,700 5.1%
Far South
Arbor Hills-South Beltline 313,900 330,800 5.4%
Rimrock Heights-Moorland Road 218,700 232,000 6.1%
East Central
Lapham School-Breese Stevens (Square) 274,100 301,300 9.9%
Wil-Mar/Orton Park 373,700 410,800 9.9%
Tenney Park 362,700 392,600 8.2%
East High 228,200 235,500 3.2%
Atwood-Winnebago 258,500 281,300 8.8%
Fair Oaks-Worthington Park 179,200 192,000 7.1%
Northgate-Aberg Avenue 178,900 185,500 3.7%
Elmside-Oakridge 392,200 411,700 5.0%
Eastland-North Gardens 188,700 198,400 5.1%
Near East
Highwood-Glendale 220,800 235,100 6.5%
Glendale 213,600 224,900 5.3%
Lake Edge 194,700 207,500 6.6%
Olbrich 186,500 200,300 7.4%
Eastmorland 209,800 218,800 4.3%
Olbrich Park-Cottage Grove Road 210,200 226,900 7.9%
Far East
East Broadway 147,400 147,500 0.1%
Elvehjem-Acewood 209,200 228,500 9.2%
Elvehjem-Buckeye-Droster 234,400 244,600 4.4%
Rolling Meadows 220,100 227,100 3.2%
Rustic Ridge-East Ridge 240,700 253,500 5.3%
Milwaukee Street I90-94 220,900 234,400 6.1%
Heritage Heights 247,900 262,900 6.1%
Richmond Hill 359,400 361,800 0.7%
Mira Loma 235,000 242,800 3.3%
Grandview Commons 290,700 302,400 4.0%
Twin Oaks-Liberty Pl-Owl Crk 254,600 255,100 0.2%
Door Creek/Reston Heights 282,300 291,100 3.1%
Eastlawn/Covered Bridge/Rustic Acres 295,600 300,700 1.7%
Southeast Blooming Grove Attachment 188,500 190,500 1.1%
Lost Creek 252,700 266,400 5.4%
Siggel Grove & Quinn Ranch 278,100 292,100 5.0%
Secret Places @ Siggelkow Preserve 330,500 337,400 2.1%
North East
East Washington Avenue-Stoughton Rd- Commercial Avenue 178,100 187,600 5.3%
Whitetail Ridge 226,600 231,700 2.3%
Holiday Bluff 226,200 240,000 6.1%
Berkeley 176,800 182,700 3.3%
Prentice Prairie-Ridgewood 251,200 268,700 7.0%
Village at Autumn Lake 270,500 310,600 14.8%
Parkway Village 246,100 254,100 3.3%
Woods Farm 272,100 376,600 38.4%
Near North
Patio Gardens-Lakeview Heights 211,400 218,300 3.3%
Northport-Sherman Village 198,300 207,200 4.5%
Cherokee 332,500 346,200 4.1%
Lerdahl Park 252,300 261,000 3.4%
North Lake Mendota 278,900 285,300 2.3%
Sherman School 185,000 191,500 3.5%
Brentwood Village-Sheridan Triangle 220,800 230,200 4.3%
Nobel Park-Mendota Hills 198,000 202,100 2.1%
Lake Shore
Waunona 672,200 700,600 4.2%
Woodward 864,100 943,800 9.2%
Spring Harbor 1,056,900 1,110,600 5.1%
Isthmus 832,600 871,400 4.7%
City-Wide $ 300,600 $ 315,200 4.9%

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