Forward Janesville - TheReport - First Quarter 2018

It is no secret that the economics of Rock County have changed in recent years, and the housing market is no exception. But if it’s not one thing, it’s another, right? Today, instead of lamenting declining property values and a flooded market, residents are finding that houses and rental properties are increasingly hard to come by. In January 2015, the median listing price of a home was $124,900. By December 2017, that figure had jumped to $142,9001 and the median sales price was $144.9502. Today, homes routinely sell above asking price and often within days. The median amount of days a listing was on the market in December of 2017 was 58. By contrast, it was 73 days in December 2016 and 70 days in December 2015.1 Desirable properties often sell in less than one week. Whereas before someone might find hundreds of properties for sale at any given moment, a quick search in recent months shows an average of only 140 or so homes up for sale. The rental market is no exception. With only about 40 or so homes for rent at any given time and a vacancy rate as low as two percent at times, finding space can be challenging. Some rental property managers have reported waiting lists of 10 to 15 people for some properties and wait times that can go on for months. According to federal census data and an April 22, 2017, Janesville Gazette article, between 2009 and 2015 Janesville has seen a 21 percent increase in the number of rental units occupied, while the owner-occupied properties remained flat. Meanwhile, Janesville's rental population climbed from 15,000 to 20,000—a 33 percent jump—while the number of people living in owner-occupied residences fell just 3 percent. Following the laws of supply and demand, this has affected rental pricing. Median monthly rents climbed from about $710 a month in 2009 to $750 a month in 2015 and rose to $887 per month in August 2017.2 Rental properties in the $750-to- $1,000 range were among the fastest growing segments of the local market, and local realtors have said it's becoming increasingly common for rents in Janesville to top $1,000 a month—an amount that can equal or surpass the mortgage costs for some first-time home buyers in the Janesville area. To avoid the chilling effect this could potentially have on economic growth, Forward Janesville and local community collaborators will be holding a summit to share ideas and brainstorm solutions (see sidebar). Meanwhile, local entrepreneurs are already in the game, launching innovative new companies to help address the shortage. One local example is Boomerang Home Rentals, an executive home rental company offering turnkey fully furnished homes that include utilities, Wi-Fi, cable, and all outdoor maintenance. The idea behind the start-up was to fill the clear shortage of short- and long-term housing for executives coming to the region thanks to the recent economic growth, which has drawn so many new companies to the area. Boomerang’s founders are familiar faces in the area: Mark and Kathy Bush, former founders/owners of Data Dimensions, and their son, Kevin Bush, who has a background in property management. “As more companies expanded or relocated to Janesville, we realized that there was a significant high-end market segment that wasn’t being served adequately, specifically all of the execs and physicians being recruited to the area who often need short-term housing for themselves and many times their families while they search for a permanent home. That was the impetus behind our concept. We offer a place to call home, even if it’s only temporary,” said Kevin Bush. “Our turnkey, executive homes are fully-furnished and have all the amenities anyone might need during a stay, including bedding and towels, outdoor grills, spacious garages, fully- equipped gourmet kitchens-the works.” The concept has been extremely well received. Clients appreciate the ease and convenience, and some have even made offers to purchase their rental home, which is a great indicator that the Bushes are right on the money when it comes to matching executives and their families with the right property. Today, Boomerang has a total of 16 properties and plans to grow by 4 to 6 homes per year, or perhaps more as the market demands. The company will also be adding new construction homes in 2018. Current monthly rents range from about $1650 to $2250 per month. “A unique thing about Boomerang is that it allows clients to move in and literally have nothing more to worry about than unpacking their clothes. Everything they need is provided. There are no bills to pay—cable, utilities, lawn care, you name it—is included in the monthly rent. Current clients have repeatedly shared that having just one check to write and no worries beyond that is a key benefit,” said Mark Bush. Having created something long overdue in the high-end rental market, Boomerang’s biggest challenge may be keeping up with demand as Janesville grows. Certainly Boomerang is just the first of many ventures that is likely to take shape as entrepreneurs find creative ways to address the housing shortage. It will be interesting to see what 2018 brings, as Janesville and the surrounding area continues to develop. 12 • W W W . F O R W A R D J A N E S V I L L E . C O M Housing Shortage Inspires Summit and Creative First-mover Entrepreneurs By Laura Barten and Dan Cunningham, Vice President Government Relations & Education 1 Source: Realtor.com 2 Source: Trulia.com 3 Source: Janesville Gazette, 4-22-17, “Would-be Janesville renters face slim options, waiting lists”. Future Summit to Address Housing Issues Janesville’s housing issues are a threat to our community’s economic growth, and incoming FJI Chair Sherri Stumpf of Blackhawk Community Credit Union has identified this as a top challenge facing our community. FJI is organizing a housing summit, where stakeholders from the housing industry, businesspeople, and city staff will come together to take a 360-degree look at the issue and see what ideas and action steps emerge. Stay tuned for more news on this important effort. maintenance ang Ex Boomer TURNKEY EXECUTIVE HOME RENT B o erangHomeRentals.com al.v w remo , and sno e Home Rentals include all fur ecutiv e no other bills outside of y v nishings ALS our monthly rental. Wi-Fi, cab , , utilities wn , la le “A unique thing about Boomerang is that it allows clients to move in and literally have nothing more to worry about than unpacking their clothes. There are no bills to pay—cable, utilities, lawn care, you name it—is included in the monthly rent.” Mark Bush • Founder Boomerang Home Rentals