COVID-19 Pandemic Induced Demand and Second Home Sales in Wisconsin’s Northwoods

Keywords: COVID-19 Pandemic, Second Homes, Property Values, Wisconsin
Abstract Type: Poster Abstract

Abstract

The concentration of freshwater lakes and abundant forested land cover in the State of Wisconsin’s rural Northwoods region have attracted tourists and second homeowners for over a century. For these reasons, the region witnessed a substantial rise in demand for second homes in the early years of the COVID-19 pandemic as lock downs and remote work worked in tandem to lure new residents to amenity rich areas of the rural Upper Midwest. Pre-pandemic research on second home ownership in the Northwoods has revealed notable ties between permanent residents of the nearby metropolitan regions of Minneapolis-St. Paul, Minnesota, Milwaukee, Wisconsin, and Chicago, Illinois (Weichelt and Zeitler 2021). This study examines this relationship further by investigating the impacts of pandemic induced demand for second homes in Vilas and Oneida Counties. Data provided by the Wisconsin Realtor’s Association, county governments, and other resources inform an empirical geospatial analysis that compares the frequency, values, and locations of residential real estate transactions between 2019 and 2021. Results reveal that homes with lake access were in most demand, as sales exceeded 150% of the listing price in some cases, but sales of landlocked properties also witnessed sales well above listing price. Whether COVID-19 era real estate values will resemble a bubble or a permanent increase in the long term is unknown, but this study contributes to existing literature (Bieger et al. 2022) that demonstrates the immediate impacts of pandemic-related demand on home values in a region with an established history of second home ownership.