Contact your Congress critters to let them know that you are tired of high gas prices.
Posted on 07/16/2008 5:43:59 AM PDT by Diana in Wisconsin
Debbie Kelly and her husband, Tom, have been living the dream for years.
They've got a cozy home nestled in the Wyoming Valley, the bucolic Iowa County setting where architect Frank Lloyd Wright drew his inspiration.
Deer graze in the yard. Orioles flock to the bird feeder. When nights are clear, the Milky Way lights the sky.
It's a little slice of heaven -- save for the 45-mile commute to work.
It wasn't a big financial drain driving into Madison, even as gasoline passed $2 a gallon in 2004 or $3 last summer. But for Debbie Kelly, $4 fuel has been the tipping point.
Now, instead of driving all the way to her nursing job at the Dean Clinic on Fish Hatchery Road, Kelly will often park in Verona and ride her bicycle the rest of the way. One night a week, she camps in the back of her pickup truck at Lake Farm County Park, south of the Beltline on the shores of Lake Waubesa.
"They've got the hottest showers," said Kelly, 54, a mother of three.
Kelly admits she's thought about moving closer to the city. The time spent driving and the rising costs are beginning to wear. But she said her husband isn't budging.
"Tom will probably go with the property," she said. "I don't think he'll ever leave the valley."
Whether high fuel prices are going to affect where people in Wisconsin live remains to be seen. It's not that simple to just pick up and move, especially for those who already own a home.
Still, it's a question crossing the minds of many who chose to buy a home miles from their place of employment or school.
"It really hit me when it cost nearly $100 to fill up the truck last week," said Rich Eggleston, who lives in Fitchburg and commutes to his job downtown at the Alliance of Cities.
And there are early indications that life in the suburbs is starting to look less attractive to home buyers.
Consider the median price of homes sold in McFarland is down nearly 19 percent from a year ago, falling from $258,000 to $210,000, according to the latest figures from DaneCountyMarket.com.
In Mount Horeb, prices are down 14 percent. In Fitchburg, they're off 8 percent. In the New Glarus/Belleville/Monticello market along the Dane-Green County border, prices are down nearly 10 percent.
While real estate insiders say it's dangerous to draw conclusion from just a few months of data -- Verona, Waunakee and Sauk City, for example, have all seen prices climb in 2008 -- there seems a growing realization that gasoline prices are not going down again.
That's left some observers wondering if the drivable suburb -- the model for virtually all post-World War II development in Wisconsin and the U.S. -- has run its course.
"I think we're looking at a tremendous societal shift," said Steve Hiniker, executive director of 1,000 Friends of Wisconsin, a statewide group that advocates for better land use. "Urban areas such as Madison and Milwaukee will continue to fill in and modern transit will soon be a part of the urban setting. Suburbs will continue to lose value as gas prices hit the stratosphere."
Indeed, the future of the suburbs in the face of rising energy costs has sparked a flurry of national reports in the past months. Many have come from groups that would like nothing better than to see an end to sprawl and a reinvestment in mass transit and the urban core.
One study from Chicago-based CEOs for Cities argues that soaring gasoline prices are what really popped the nation's housing market bubble.
"The popular narrative on the collapse of housing prices has only blamed exotic lending practices," said the group's economist Joseph Cortright. "But the much more important story is about how higher gas prices have re-drawn the map of urban real estate values."
In another report, Arthur Nelson of Virginia Tech predicts the nation is facing a surplus of 22 million large lot homes (houses built on 1/6 an acre of more) by 2025. That represents roughly 40 percent of the "McMansions" in existence today, places like Bergamont, Bishop's Bay and Hawk's Landing in Dane County.
And long-time sprawl critics like James Howard Kunstler have cheered the higher fuel prices as finally bringing an end to decades of suburban madness. He said trying to find solutions to keep the "Happy Motoring" utopia running is naive.
"The truth is that no combination of solar, wind and nuclear power, ethanol, biodiesel, tar sands and used french-fry oil will allow us to power Wal-Mart, Disney World and the Interstate highway system -- or even a fraction of these things -- in the future," Kunstler said. "We have to make other arrangements."
Closer to home, not everyone shares the same doom-and-gloom scenario.
Madison Mayor Dave Cieslewicz said fuel prices haven't reached the point where Americans have been forced to make fundamental changes. Rather, he sees a more gradual shift to a balanced mix of transit, compact development, walkable communities -- and single-passenger vehicles.
"I just got back from Europe and people still love to drive but they have other options," he said. "Unfortunately we've created a physical environment in this country that makes us slaves to our cars."
Cieslewicz said those who oppose mass transit or improved rail service often argue that environmentalists want to take away the freedom to drive.
"People on the other side of this issue use scare tactics and say everyone will be forced to give up their cars," he said. "But there is actually more freedom in having the option to bike or walk somewhere without fear of getting killed."
Troy Thiel, who moved to Madison in 2003 from the Chicago area and narrowly lost a 2007 bid for a seat on the City Council, predicts the suburban housing market will weather the storm. He notes that many of the area's largest employment centers are no longer located downtown -- including Epic Systems in Verona, American Family on the far east side and Discovery Springs in Middleton.
A sales agent with First Weber West Towne, Thiel also questions whether fuel prices are having much impact at all on an already depressed real estate market. He notes that sales of homes and condos within five miles of the State Capitol were down 30 percent for the first six months of 2008 versus a 25 percent sales decline overall.
"People are choosing more efficient personal autos and will locate closer to their jobs, many of which are already in the 'burbs," said Thiel. "Rich folk are putting their SUVs in the garage. That way $4 gas looks like $3 gas and they're just fine with that."
Needless to say, those who can afford it don't feel the fuel pinch as acutely.
But rising oil prices are costing everyone plenty. The average American household will spend over $3,200 to fuel their vehicles this year, according to the Bureau of Labor Statistics, more than twice the cost of just five years ago.
In Dane County, drivers are now spending a combined $428 million more on gasoline than in 2004, according to professor Andy Lewis, community development specialist for University of Wisconsin Extension. That's money that could have gone to a lot of other uses, whether affordable housing or commuter rail.
Lewis noted that in 2006, when gasoline averaged $3 a gallon, households with incomes under $14,999 were already spending eight percent of their income on fuel versus three percent for households with incomes over $100,000.
"As expected, the lower income households are feeling the pinch more then wealthy households," said Lewis.
On the other hand, Alan Harvey, chairman of the town of Windsor, said Dane County enjoys the advantage of having a diverse economy -- a mix of both urban, rural and suburban development.
"Clearly, all of society is going to be looking at a period of adjustment," he said. "But I think we're pretty well-positioned since economic activity is spread throughout the county."
Harvey said the real impact is being felt in communities outside Dane County like Fall River or Pardeeville, where people have purchased homes because they got a lot more square footage for their dollar.
"Those advantages start to disappear when commuting costs get too high," said Harvey, who is skeptical about the ability of mass transit to solve the problem.
Madison Ald. Robbie Webber, who defeated Thiel in the District 5 council race, has championed higher density urban development and mass transit as the long-term solution. Despite the growth in the suburbs, she said Madison remains the engine that drives the area economy with its downtown and UW campus.
"Even lunch is easier to get to without a car in a dense area than in a suburban business park," she said.
Webber said the concern isn't so much with Middleton or Verona, two places where real estate values have been holding.
"What about Mount Horeb, Dodgeville, Lake Mills, Edgerton, Portage?" she said. "Those long commutes, with no hope of transit, are going to be pretty painful."
To that end, commercial real estate developer Terrence Wall says he realized several years ago that rising gasoline prices were going to dramatically impact Dane County. For that reason, he's pursuing mixed-use projects combining office, residential and retail at Tribeca Village in Middleton and the West End in Verona.
"I've been warning people for the last three years that demand for oil in China was going to send prices skyrocketing," said Wall, president of T. Wall Properties.
Dan Miller, a Realtor with Keller Williams who maintains the DaneCountyMarket.com Web site with colleague Shawn Kriewaldt, cautioned against drawing too many conclusions about the long-term impact of gasoline prices on the local housing market.
"For example, I just helped somebody sell a house in Madison and buy one in Mount Horeb because they work at Epic and wanted to be closer to their job," he said.
Miller said a few more months of data may help paint a clearer picture.
"I think we're on the early part of the curve right now," he said. "Most folks spend several months looking for a home before they make an offer, and once an offer is accepted, it can be another 1 to 3 months until the closing. Given the lag between the decision to buy and the actual purchase, my hunch is the data will become more telling later this fall and winter."
At this point, most commuters are just biting the bullet, trying to combine trips or share rides when possible.
Nicole Weisenberger, who drives 100 miles round-trip from Madison to her job as an occupational therapist in Beloit, has found a few ways to offset the high gas prices. One is purchasing a Pontiac Vibe, which gets over 30 mpg on the highway. The other is cutting back on doggy day care from three days to one day a week.
"To be honest with you, I think the dog has been suffering more than I have," she said.
Less burdensome to the planet? It sounds like you've been smoking the democRAT crack!
Good post. You see the situation clearly, IMO.
[so let’s allow the free market to guide us toward the most efficient alternative.]
I’m with you on that. If on only the Gov’t and envirocommies would get out of hard-working Americans way!
Well, if they can’t afford it, they don’t have much of alternative, now do they?
It’s not. I was referring to “biofuels” and the like.
Thank you.
If I’m not mistaken, her husband Tom was my attorney back in the early 80’s.
Why don’t we let the free market determine what is the viable alternative.
The gov’t needs to get out of the way and let the free market work out the best solution.
Ah, the good old conservative city life.
Public (government subsidized) transportation.
Public (government subsidized) sewer system.
Public (government maintained) streets on a 200 foot spaced grid.
Wall-to wall police force just to make an evening walk marginally safe.
Government restrictions on animal ownership, what you can display, what you can garden, how much noise you can make, and (until recently) your right to own a gun.
I have consciously chosen to pay less (housing, food, etc) to live in the suburbs, where I enjoy far greater freedom from the nanny state. I see a cop car about once or twice a month. How many have you seen just this morning?
And no, I’m not going to whine about gas prices. Plan B is to car pool when gas gets to about $7/gallon.
You have the right to live wherever you can AFFORD. Why is this so hard to understand? High energy prices are here to stay, whether we drill at home or not. It’s a global problem. For many people, that may leave them unable to live their current lifestyle. Rather than accepting it adjusting, many are whining and complaining and expecting somebody else to fix the mess they’ve gotten themselves into. Typical liberal behavior, but now coming from people who call themselves conservatives.
You can waste as much as you want as long as you pay for it, but now we’re starting to see the ramifications of it. Times and circumstances have changed. Get over it. If you can afford to keep living the way you are, then great. More power to you. If not, you’re going to have to change. I’m not telling you that, government’s not telling you that, economics is. Phil Gramm was spot on when he said this is a “nation of whiners”.
On one final note, if you drive on the highways, then you’re dependent on government to get where you need to go. Why is that so hard to see for so many people?
People didn't abandon the cities - the cities abandoned the people. They became liberal, grabbing more and more of what people earned. So the earners escaped, just as one would escape a communist country.
I'm guessing that you're probably young so you don't remember events like the Hough Riots in Cleveland. Or the Black Panthers knocking on doors on the east side of Cleveland, telling "whitey" to get out of their neighborhood.
Watching one's neighborhood turn from a cozy, friendly place where everybody took care of their property to one where homeowners took no pride in ownership. Where they let their own homes falter, dragging the value of the neighborhood down with it. Tenants destroying the property that they rented, and then blaming the landlord. And the cities - they could have cared less as long as they got their tax dollars. In fact, they often took the side of the tenents.
I worked those neighborhoods as an electric Meter Reader for 3+ years. I've seen it up close and personal.
After you've seen a city or a neighborhood get destroyed by liberalism, you won't want any part of it any more. My family fled Cleveland in 1959, and many of my friends' families did so during the '60's and early '70's when things had gotten really rough (thanks, LBJ, for that "great society" mindset). I would never go back to that hellhole, and I wouldn't expect that very many others will either, unless they live in some gated community or one of the few remaining enclaves of sanity.
No thanks.
City entrepreneurs (murderous thugs) are looking forward to the new influx of wealth. Better sharpen up on your urban warfare skills before you move to Philly. It also helps to look as crazy as you can. Get a neck tattoo as a minimum.
That’s exactly what I’ve been saying. Liberals want to try and “solve” the energy problem through government programs. Many conservatives want to drill our way out of the problem, but that’s not going to work. I think that’s the fundamental disagreement I’m having with most people on this thread - that we can’t drill our way out of this. Secondly, even if drilling does bring down prices, it will be temporary. I say it’s better to have the high prices now so that the market directs us towards something else. We’ll need the oil still in the ground for the transitory period, so we’d better not blow through it by trying to kick the problem further down the road.
Contact your Congress critters to let them know that you are tired of high gas prices.
I’ve got a news flash for you; the road system is government subsidized transportation. The streets and sewers are maintained by city and country governments nearly everywhere, even in the suburbs. I don’t see that many police and I feel perfectly safe; most of the other things you’ve mentioned depend very much on the city.
As long as you don’t whine about gas prices, then I don’t care what you do. You have the right to live however you want.
That would be so funny if all the employees brought a tent and camped out in the parking lot! Wonder if the employer would call the police?
First of all, let me clear something up I’ve had to clear up several times now. I’m not criticizing the suburbs. I’m criticizing people who feel a sense of entitlement about living in the suburbs.
Liberalism failed the cities. However, the suburbs may no longer be a viable alternative for a lot of people. People may start to move abandoned cities and try to fix them, and not with any big government programs. Alternately, they can build new cities or expand existing ones. With the internet and the availability of air travel, you can put a city just about anywhere.
Perhaps.
You assume that the government will allow the free market to develop alternate energy rather than to use this price crunch as an opportunity to force us into greater government dependency. Will high prices force the government to allow breeder reactors? Coal gasification? Shale oil extraction? Or will the government insist that we reverse economic growth for the sake of some environmental hoax?
“Commuting to Work Less Attractive as Gas Prices Soar”
Duh.
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