SURPRISING STUFF
The inflation index rate rises at the fastest pace in 40 years along with gas prices.
(gas and food are not a part of the governmentally tracked and reported inflation rate).
Record gas prices have driven the gross rate of inflation (the level of prices of goods and services that all households buy) up 8.6% over the last twelve months ending in May. That’s an even higher rate than in April. The consumer price index, CPI, (the index for all items less food and energy) posted a 6% increase. Those are pretty significant numbers and increases. This has been the highest price increase experienced by customers since 1981. Gasoline is up 48.7% from 2021, used cars are up 16.1%, food is up 10.1%, energy is up 34.6% and shelter is up 5.5%.
Consumers are spending almost $500 a month more for the same items they typically purchase, and that extra money needs to come from somewhere. Incomes have not gone up significantly (3.6%) during this time, meaning that more families are having to cut back on extras, including vacations. Inflation is eating away at most consumers’ ability to buy and spend money on things that aren’t a necessity. Summer tourism is a huge part of the revenue stream that it helps the communities surrounding Geneva Lake survive. Meanwhile, the rising fuel prices are causing airline flight prices to increase, and that could very well change the choices people make to deciding on where to vacation this summer. This could mean a boom in the economy around Geneva Lake as people will likely be staying closer to home for vacations and breaks.
These people reining in their vacation plans will still want to take a physical and mental vacation in relief from the last two years of the pandemic but don’t have the funds to travel to far destinations. By staying closer to home, they will be able to afford more activities and time. Lake Geneva is fortunate to be located close to some of the bigger cities in Wisconsin and the surrounding states. The location and ambiance will help draw visitors to the lake communities and businesses. Get ready, as this season could be a record-breaking summer around Geneva Lake.
The vacation rental place called The Downtowner is for sale.
The building was not always a vacation rental prior to being purchased and converted a little over five years ago it was used for retail and office space. The owner of the building at 640 W Main Street did a great job remodeling and completely changing the look and feel of this building at this prime location, in the heart of downtown Lake Geneva. The Downtowner has been rented almost consistently through the peak season and has had its fair share of renters in the off-season. After five years of being in the vacation rental business, at least at this spot, the Downtowner is up for sale. This thriving vacation rental is listed at $2,490,000, not a bad price, except for the lack of parking. The building is 2,575 square feet in size and has ten bedrooms and seven and a half bathrooms. The building is well maintained and well-kept and that obvious fact isn’t likely to change while the structure waits for a new owner. The current owner is still looking for ways to improve the location and keep it nice.
Last week the Lake Geneva Plan Commission approved the owner’s request to properly identify and move the neighbor’s dumpsters on part of its shared driveway, making it easier for boarders to park and clearing up any confusion between those visitors and the owner-operators of Magpie’s Den & Pen. Magpies which only recently opened next door and is doing solid consistent business compared to the prior business that was there, which was not really open while the Downtowner was being redeveloped. Overnight rental of the building costs $1300.
Persons Of The Week
Michelle and Natalie Packard are the wonderful baristas at the Bean + Vine Coffee Shop inside the Ridge Hotel. Stop in for a cup of coffee and an intelligent fun chat.
