Forward Janesville - TheReport - Second Quarter 2021

If you’ve been out and about in the world this early summer, you have probably noticed something: exuberance. It feels like a lid has been taken off of the world. People everywhere are being reunited with family, friends, and acquaintances. These reunions have often been emotional—I’ve seen more than a few tears as old friends embrace. The last 18 months have been unlike any we have experienced in our lifetimes, and we now may be entering a new era: The Roaring Twenties. Simply put, the U.S. economy is on fi re, and many consumers have money to burn. Fueled by unprecedented government assistance, personal savings levels are at all time highs. According to a June 2 Wall Street Journal article, “American household debt-service burdens, as a share of after-tax income, are near their lowest levels since 1980, when records began. The Dow Jones Industrial Average is up nearly 18 percent from its pre- pandemic peak in February 2020.” The U.S. economy’s size is predicted to surpass pre-pandemic levels sometime in the second quarter. The national housing market is also on fi re. The Wall Street Journal states that home prices have surged by 14 percent since February 2020. This situation is even more pronounced locally, as home prices in the Janesville-Beloit market are up 55 percent since 2017, placing our market in the top ten nationally. I tell my wife every day that I would sell our house—if we had anywhere to go. People are feeling the surge on both ends of the transaction; sure, you can sell your house for more, but you’re going to pay a lot more for your new house. Don’t even get me started on building on building a house, where rising material prices, labor shortages and Dan Cunningham • Vice President of Government Affairs and Education • danc@forwardjanesville.com The Roaring Twenties? 6 • W W W . F O R W A R D J A N E S V I L L E . C O M