University of Wisconsin-Madison
Since 1892 dailycardinal.com
The 2015 Daily Cardinal housing guide
Weekend, November 12-15, 2015
+OPINION, page 5
A new chapter for Rocky Horror TheâThe Daily Cardinal Picture Showâ
+pages 6 and 7
Students look for housing as roofs, prices rise Story by Michael Frett and Ravi Pathare On the corner of North Bedford and West Mifflin Street, a crane towers over the steel and concrete skeleton of Uncommon, Madisonâs next apartment complexâjust one of the many highrise housing projects marking the downtown skyline. According to a recent housing market report compiled by the city, the complexes like Uncommon filling downtown Madison with cranes and beams are actually responding to high demand fueled by incoming young professionals and baby boomers, which has led to rising prices and low vacancy.
âIf I wanted to live downtown and have my own apartment ... I would never have been able to do that.â Brook Evans student UW-Madison
Matt Wachter, the writer of the Madison Housing Report and the cityâs housing initiative specialist, said the shortage of housing options has rendered Madison a landlordâs market. â[Itâs] like a balance of power between landlords and tenants,â Wachter said. âWhen vacancy gets really low, the landlord kind of has all the power. It can charge higher prices [and] be pickier about who the tenants are.â The modern Madison housing market The city measures housing shortage in terms of vacancy. While a healthy vacancy rate for a city is around 5 percent, Madisonâs market has hovered between 2 and 3 percent for the last five years, according to the report. This trend is likely to persist even as construction companies continue to break ground on new apartments. âYou could add a thousand
been charging more before, and people wouldâve paid it.â
CONG GAO/THE DAILY CARDINAL
Uncommon is one of many recent downtown apartment buildings under construction right now. vacant new apartments tomorrow and you wouldnât quite hit 5 percent,â Wachter said. According to Wachter, the closer the market comes to that 5 percent, the more competitive and stable it will become and the more likely housing prices will level out. The recent trend is a direct response to the âhousing bubbleâ of the mid-2000s, when fewer Madisonians rented and the rate of apartment construction declined. After the recession, landlords attempted to fill the gap between supply and new demand by increasing the rate of construction. Yet as high-rises increasingly fill the Madison skyline, they raise a question of affordability for area college students, whose limited access to cars keep them tied to the campus areas that border the disputed downtown housing market. A large part of the rising demand comes from an influx of young professionals and retirees, demographic groups who tend to have the income for higher rents and more luxurious amenities. Many of the new apartments are built with this higher income bracket in mind, according to the city report. Fueled by the housing shortage and their higher income audience, many newer apartment complexes
have opened with higher rents. The lowest monthly rent in the Hub, a massive new apartment complex occupying an entire block of State Street, is just shy of $600 per person, according to the buildingâs website. Likewise, Varsity Quarters on the other side of campus has a price listing charging approximately $550 per person on average.
âEven someone that has a 30-year-old apartment is seeing a lot of demand for their products because of that shortage in the market.â Matt Wachter housing initiative specialist City of Madison
Reflecting the apartmentsâ location near Madison landmarks, their amenities and their quality, these higher prices are only usually accessible to higher-income students. Area students not desirable residents in high-demand housing Unfortunately for other students, like undergraduate Brooke Evans, new apartments like the Hub and Varsity Quarters are not
an option. Evans, who works with UW-Madisonâs HOPE Lab and was homeless throughout the first years of working on her degree, felt largely excluded from Madisonâs housing market due to pricing. âIf I wanted to live downtown and have my own apartment downtown ⌠I would never have been able to do that,â Evans said, who had to leave Madison for a time due to financial strain. âMadison was way too expensive. And that was after four years of being homeless.â Evans currently lives in an apartment on State Street, where her rent is supported by donations from alumni. Even so, her housing situation is shaky. âWhen I first moved in ⌠it was $750 a month,â Evans explained. âThey raised my rent to $890 a month. I have a place to stay now. I donât know how long, but I paid my rent for this month.â Her landlord told Evans her rent increased due to its popular location and the presence of larger, more expensive apartments opening nearby. Wachter agrees it is possible more expensive apartments could add to the value of the location, spurring landlords to raise prices. âThereâs a lot of factors [that can raise rent],â Wachter said. âIn that case, [landlords] couldâve
Pinpointing causes of rent price hikes Although Wachter said it is difficult to identify the actual causes of increased rents in existing apartments, it is likely the demand for housing is driving rent hikes. âEven someone that has a 30-year-old apartment is seeing a lot of demand for their products because of that shortage in the market,â Wachter said. He added it will be difficult to tell if the new apartmentâs higher prices will drive up overall prices, but construction expenditures have increased substantially. âWeâve been seeing 7 to 10 percent increases per year in construction costs,â Wachter said. âSo that definitely gets carried through higher rents. You have to charge higher rents to make up for it.â
âWhen vacancy gets really low, the landord kind of has all the power.â Matt Wachter housing initiative specialist City of Madison
Wachter added that the value of land in the downtown area is also going up, which leads to competition for land. â[This] translates into having to charge higher rent if you paid an extra million dollars for your site,â he said. Rethinking the local rentersâ market Since the report focuses on the typical renter as opposed to students specifically, Wachter said the city is hoping to study the student market further. Further increases in rents have affected students and low-income young adults for whom price is a primary factor in deciding where to live. According to the 2014 Madison Housing Report, when a
housing page 4
Upskirting law among 49 bills signed by Gov. Scott Walker By Leo Vartorella THE DAILY CARDINAL
Gov. Scott Walker signed 49 bills into law Wednesday, including measures that loosen concealed carry gun laws and one bill that makes upskirting a felony. State Reps. Melissa Sargent,
D-Madison, and Jim Ott, R-Mequon, authored the upskirting legislation. Taking unauthorized photos under a womanâs skirt had previously been a misdemeanor, but the bill stiffens the penalty against offenders. âDue to advances in technology,
upskirting has become a serious issue,â Sargent said in a statement. âThis bill will not only shed light on this societal problem, it also allows for appropriate legal consequences for offenders.â Perpetrators would be subject to a prison sentence of up to 3 1/2
years and fines of up to $10,000. Walker also signed two bills authored by state Rep. Joel Kleefisch, R-Oconomowoc, that expand concealed carry laws. Assembly Bill 75 allows military personnel stationed in Wisconsin for at least one year to apply for
a concealed carry license for the duration of their stay. Assembly Bill 77 allows law enforcement officials who served in other states to apply for the same license, as long as they are a Wisconsin resident.
bills page 4
ââŚthe great state University of Wisconsin should ever encourage that continual and fearless sifting and winnowing by which alone the truth can be found.â