Wisconsin City Administrator Calls for Rethink on Small-Town Investment

Written by:

Rudi Davis

Date:

29 Jan 2026

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A Wisconsin city administrator argues that communities within an hour of major metropolitan areas offer better economic conditions and more motivated municipal partners than the crowded urban markets that typically attract developers’ interest.

Real estate developers may be ignoring viable opportunities in smaller regional markets due to outdated assumptions, according to Alex Mansfield, City Administrator of Amery, Wisconsin. Mansfield says that communities like his—located about an hour from Minneapolis-St. Paul—has available land, infrastructure, and demand, but often struggles to attract developers’ attention amid focus on larger population centers.

“Folks typically discount rural communities as a good source of investment because they’re not in a metropolitan area,” Mansfield says. “But available land and people are willing to support a project. You can have strong partnerships outside of a fiercely competitive market.”

The Overlooked Market Segment

Mansfield points to a specific group of secondary markets that are often undervalued: towns with fewer than 5,000 residents located within an hour’s drive of a major city. These communities offer access to regional labor and amenities, along with lower land costs, available infrastructure, and municipal governments eager to attract new development.

In Amery, the city owns 18.33 acres of developable land with utilities already in place. It is actively seeking developers for light-manufacturing or service facilities ranging from 10,000 to 50,000 square feet. Mansfield says the city is open to proposals that serve community needs, not just profit. “We’re just trying to find a suitable use for those sites,” he explains, adding that the city is motivated to make a deal that benefits residents.

Demand drivers in these markets differ from those in major metros. Feedback from local businesses in Amery highlights a trained workforce and a steady influx of people seeking a slower pace of life outside the city. “There’s a lot of demand for new housing from folks leaving metropolitan areas,” Mansfield notes.

Why Developers Default to Metropolitan Markets

Despite these advantages, most development capital still flows to large cities. Mansfield says this is partly because of longstanding habits among developers, lenders, and investors who prefer familiar markets. This pattern, he argues, causes many to overlook the potential of smaller communities.

“Smaller towns are primed, especially those within an hour of a major metro and looking to expand,” Mansfield says. “There’s pent-up demand for employers, housing, and commercial real estate. Developers should be willing to look beyond the Metropolitan Statistical Area for their projects.”

Amery, for example, has multiple tax increment districts and is willing to negotiate on city-owned properties. The city offers “pay as you go” incentives, where developers receive funds back over time after new structures are added to the tax rolls. “Not only is your tax bill affected, but here’s some money to help support operations over 10 or 15 years, whatever fits the project,” Mansfield explains.

The Municipal Partnership Advantage

Mansfield emphasizes that one of the main advantages of developing in secondary markets is the willingness of local governments to act as true partners rather than just regulators. In large metropolitan areas, cities often see enough demand that they have little reason to offer concessions or creative deal structures. In smaller markets, municipalities are more motivated to support project success.

“We’re able to be a partner,” Mansfield says. “We’re willing to negotiate on anything we control.”

This approach can significantly reduce the total development cost. Mansfield cites a recent 42-unit residential subdivision in Amery where the city covered half of the public infrastructure costs, illustrating the level of financial participation some smaller municipalities are willing to provide.

A Strategic Opportunity for Developers

Mansfield argues that developers and investors may be missing profitable opportunities by focusing solely on large cities. Secondary markets within an hour of major metros, especially those with available infrastructure and active local support, represent a largely untapped segment.

Whether more developers move capital into these areas may depend on how quickly the industry recognizes that the main barrier isn’t market fundamentals but persistent assumptions about small-town viability—and a reluctance to move beyond familiar metro markets.

Municipalities like Amery are ready to work with partners who recognize the value of these communities. Mansfield’s message is clear: “People are willing to do things to support a project, and you can have strong partnerships outside of a fiercely competitive market. Developers should be aware that smaller communities are looking to be a place to set up shop.”

Looking Ahead: Why This Matters Now

As competition intensifies in major metropolitan areas and land and construction costs continue to rise, the economics of secondary markets are becoming more attractive. Developers facing tighter margins and increased risk in crowded urban environments may find that smaller communities offer a better balance of cost, demand, and municipal support.

The current environment, with shifting migration patterns, remote work trends, and renewed interest in smaller-town living, has created a window of opportunity for those willing to look beyond traditional markets. For developers open to new locations and flexible partnerships, secondary markets like Amery may offer not just available land but a more collaborative path to long-term returns.