If you're wondering about the current Milwaukee housing market trends, here's the scoop: the market is showing signs of a positive start to 2025. Home sales are up, and so are listings, but demand still outstrips supply. This imbalance is driving up prices in the Milwaukee metro area. Let's dive into the details and explore what this means for buyers and sellers in the Cream City.
Current Milwaukee Housing Market Trends: What's Happening in 2025?
Home Sales
The Milwaukee area saw a solid increase in home sales in January. According to the Greater Milwaukee Association of REALTORS® (GMAR), home sales in the Metropolitan Milwaukee market rose by 7.1%, with 908 sales recorded. While not quite reaching the numbers seen between 2018 and 2022, this is a promising start to the year.
Here’s a breakdown of home sales by county:
| County | 2024 | 2025 | % Change |
|---|---|---|---|
| Milwaukee | 535 | 533 | -0.4% |
| Waukesha | 200 | 229 | 14.5% |
| Ozaukee | 49 | 66 | 34.7% |
| Washington | 64 | 80 | 25.0% |
| Metro Area | 848 | 908 | 7.1% |
| Racine | 112 | 131 | 17.0% |
| Kenosha | 105 | 89 | -15.2% |
| Walworth | 69 | 69 | 0.0% |
| SE WI Area | 1,134 | 1,197 | 5.6% |
As you can see, Waukesha, Ozaukee, and Washington counties experienced significant increases in sales, while Milwaukee County remained relatively stable.
Home Prices
With demand outpacing supply, it's no surprise that home prices are on the rise. The average home sale price in the four-county Milwaukee area increased by 14.0% in January, jumping from $328,126 in 2024 to $373,911 in 2025. This increase reflects the strong demand from buyers who are willing to stretch their budgets to achieve the benefits of homeownership.
Are Home Prices Dropping?
While national trends might suggest some cooling in certain markets, the Milwaukee area is currently experiencing the opposite. Home prices are not dropping; instead, they are continuing to climb due to limited inventory and strong buyer demand. Whether this trend will continue throughout 2025 remains to be seen, but for now, sellers are benefiting from rising prices.
Comparison with Current National Median Price
The national median home price in December 2024 was $407,500, representing a 6% year-over-year increase. While Milwaukee's average sale price of $373,911 is lower than the national median, the 14% increase is much higher. This suggests that the Milwaukee market is experiencing particularly strong price growth compared to the national average.
Housing Supply
One of the biggest challenges in the Milwaukee housing market is the limited supply of homes. While new listings saw a positive bump in January, rising 10.9% compared to the previous year, this increase is coming off a period of historically low listings. The market is still struggling to meet buyer demand.
Here’s a look at January listings by county:
| County | 2024 | 2025 | % Change |
|---|---|---|---|
| Milwaukee | 777 | 827 | 6.4% |
| Waukesha | 275 | 326 | 18.5% |
| Ozaukee | 67 | 100 | 49.3% |
| Washington | 115 | 116 | 0.9% |
| Metro Area | 1,234 | 1,369 | 10.9% |
| Racine | 157 | 192 | 22.3% |
| Kenosha | 126 | 124 | -1.6% |
| Walworth | 119 | 136 | 14.3% |
| SE WI Area | 1,636 | 1,821 | 11.3% |
Another factor affecting supply is new construction. Through the end of 2024, only 2,151 permits for new construction were issued in the four-county area. This is significantly below the estimated 4,000 new homes and condos needed annually to meet market demand.
Is It a Buyer's or Seller's Housing Market?
Currently, the Milwaukee housing market favors sellers. The supply of inventory on hand in January was only enough to satisfy 2.3 months of buyer demand. When accounting for active offers, this drops to a mere 1.0 month of inventory. A balanced market is considered to have six months of inventory. To reach this equilibrium, the Milwaukee market would need an additional 5,175 units.
Market Trends
Several key trends are shaping the Milwaukee housing market in 2025:
- Increased Home Sales: January's sales figures indicate a positive start to the year.
- Rising Home Prices: Limited inventory and strong demand are driving up prices.
- Low Housing Supply: The market is struggling to meet buyer demand, with inventory well below balanced levels.
- Strong Demand from Millennials and Gen Z: These generations account for a significant portion of the buyer market.
- Limited New Construction: The pace of new construction is not keeping up with demand.
Impact of High Mortgage Rates
Mortgage rates, currently hovering around 7% (as of February 2025), continue to play a significant role in the housing market. These higher rates impact both buyers and sellers.
- For Buyers: High mortgage rates reduce affordability, potentially limiting the number of homes they can afford. This can lead to increased competition for lower-priced properties.
- For Sellers: Some homeowners are hesitant to list their homes, fearing they will face higher interest rates on a new mortgage if they decide to buy another property. This reluctance further contributes to the already limited housing supply.
As someone deeply involved in the local real estate scene, I've seen firsthand how these rates influence decisions. It's a balancing act for many, weighing the desire for homeownership against the financial realities of higher borrowing costs.
Milwaukee Housing Market Forecast 2025-2026: What's Next for Cream City Real Estate?
So, what's the Milwaukee housing market forecast? Experts predict a continued, albeit moderate, increase in home values. Zillow's latest forecast suggests a roughly 1.4% rise in Milwaukee home values between January 2025 and January 2026. While this isn't a dramatic surge, it does point to a stable market. Let's dig into the details.
As of now, the average home value in the Milwaukee-Waukesha-West Allis metro area sits at around $342,652. According to Zillow, this represents a 5.6% increase over the past year. Homes are moving relatively quickly, with the average property going to pending status in about 34 days. This indicates there's still demand in the area.
Looking Ahead: Milwaukee Home Price Forecast
Zillow provides a detailed short-term forecast. Here's a breakdown:
- February 2025 Prediction: A rise of around 0.3%.
- April 2025 Prediction: An additional increase of about 0.9%.
- One-Year Forecast (January 2025 – January 2026): An overall increase of approximately 1.4%.
So, while we're not expecting explosive growth, these figures suggest a steady upward trend in Milwaukee home values.
How Does Milwaukee Stack Up Against Other Wisconsin Cities?
Let's see how Milwaukee's forecast compares to other key cities in Wisconsin:
| City | Feb 2025 Projected Change | Apr 2025 Projected Change | Jan 2026 Projected Change |
|---|---|---|---|
| Madison | 0.4% | 1.2% | 1.9% |
| Green Bay | 0.5% | 1.4% | 3.3% |
| Appleton | 0.5% | 1.3% | 2.9% |
| Racine | 0.6% | 1.5% | 2.2% |
| Oshkosh | 0.6% | 1.4% | 2.4% |
| Eau Claire | 0.4% | 1.0% | 1.9% |
| Wausau | 0.8% | 1.7% | 2.1% |
| Janesville | 0.8% | 1.7% | 3.2% |
| La Crosse | 0.2% | 0.6% | 1.1% |
| Milwaukee | 0.3% | 0.9% | 1.4% |
As you can see, Milwaukee's projected growth is more modest compared to some other areas in the state, especially Green Bay and Appleton. This could be due to various factors, including existing home prices, population trends, and local economic conditions.
Will Home Prices Drop in Milwaukee? Could there be a Housing Market Crash?
Predicting the future with certainty is impossible, but based on current data and expert forecasts, a significant drop or crash in Milwaukee home prices seems unlikely in the immediate future. The projected growth, though not massive, suggests continued stability.
However, several factors could influence the market:
- Interest Rates: Rising interest rates could cool demand by making mortgages more expensive.
- Economic Conditions: A significant economic downturn could impact people's ability to buy homes.
- Inventory Levels: A sudden surge in homes for sale could shift the market balance and potentially lower prices.
My Thoughts and a Possible 2026 Forecast
In my opinion, the Milwaukee housing market will likely continue on a path of moderate growth. The city has a lot to offer, with its diverse neighborhoods, thriving arts scene, and proximity to Lake Michigan. I anticipate a similar growth pattern for 2026, perhaps mirroring the 1-2% increase we're projected to see between January 2025 and January 2026, assuming interest rates don't spike significantly. It's a great time to keep an eye on the trends, consult with local real estate professionals, and make informed decisions that fit your personal financial situation.
Should You Invest in the Milwaukee Real Estate Market?
Milwaukee's real estate market seems to be doing well, with steady growth in husing prices over the past year. The typical home value in Milwaukee-Waukesha-West Allis is $342,652, which represents an increase of 5.6% over the past year. However, it is important to note that the typical home value can vary depending on the neighborhood and housing type.
The Milwaukee real estate market seems to be a good option for affordable housing development, with Bear Real Estate Group receiving $20.6 million in financing for the construction of Michigan Street Commons, a 99-unit fully affordable housing development in Milwaukee.
Milwaukee's foreclosure rate is expected to be lower than ever before, accounting for less than 1% of all mortgages, less than half the average historical rate of 2.5%. However, the GDP growth rate is predicted to be 1.3%, indicating a significant slowdown. It is unclear how this will impact the real estate market in Milwaukee.
Real estate investment is active in Milwaukee, with Kyle Mack, owner of Mackximus LLC, a real estate investment company in Milwaukee, discussing his business in a video interview. Additionally, PIMCO, an investment management firm, manages assets for individual investors around the world.
Milwaukee is investing in its infrastructure, proposing to create the Vel R. Phillips Plaza, situated south of Wisconsin Avenue between North Fifth Street and North Vel R. Phillips Avenue. The city is prepared to move forward on the project which will add to the positive.
There seem to be various ways to invest in the Milwaukee real estate market, such as buying homes to renovate and resell, investing in real estate courses to gain knowledge about the industry, and investing in property management companies that help landlords maximize their investment properties in Milwaukee.
Overall, Milwaukee's real estate market appears to be doing well, with steady growth in housing prices and various opportunities for investment in the residential and commercial sectors.
Top Reasons to Invest in Milwaukee Real Estate Market
Milwaukee is a city in Wisconsin that offers real estate investors a lot of opportunities. With a population of over 590,000 people, it is the largest city in the state and offers a diverse range of neighborhoods, property types, and investment opportunities. Here are some of the top reasons to consider investing in Milwaukee's real estate market:
- Affordability: Compared to other major metropolitan areas in the United States, Milwaukee offers relatively affordable real estate prices. This means that investors can find deals on both residential and commercial properties that are priced lower than similar properties in other cities.
- Strong rental demand: Milwaukee has a strong rental market, with a high percentage of residents who rent their homes. According to data from the U.S. Census Bureau, over 50% of Milwaukee's residents are renters. This creates a significant demand for rental properties, particularly in areas that are close to downtown, universities, or other major employers. As of July 2024, the median rent for all bedroom counts and property types in Milwaukee, WI is $1,195. This is -38% lower than the national average. The monthly rent for an apartment in Milwaukee, WI is $1,125. A 1-bedroom apartment in Milwaukee, WI costs about $1,190 on average, while a 2-bedroom apartment is $1,369. Houses for rent in Milwaukee, WI are more expensive, with an average monthly cost of $1,450.
- Growing economy: Milwaukee has a diverse economy that is experiencing steady growth. The city is home to a range of industries, including manufacturing, healthcare, finance, and education. According to the Milwaukee Economic Development Corporation, the city has seen a 13.5% increase in employment since 2010, and the unemployment rate has dropped from 9.5% in 2010 to 3.5% in 2022. A growing economy typically translates to increased demand for real estate, both from businesses and from residents.
- Low vacancy rates: With strong demand for rental properties, it's not surprising that Milwaukee has a relatively low vacancy rate. According to data from RentCafe, the overall vacancy rate in Milwaukee was 5.5% in 2021, which is lower than the national average of 6.8%.
- Urban revitalization: Milwaukee's downtown and surrounding neighborhoods have undergone a significant revitalization in recent years, with new development projects and investments in public spaces. The city has also seen an increase in younger residents who are attracted to urban living. This has led to an increase in demand for properties in walkable neighborhoods that offer amenities like restaurants, bars, and shopping.
- Favorable landlord-tenant laws: Wisconsin has landlord-friendly laws that make it easier for property owners to manage their rental properties. For example, landlords can evict tenants for non-payment of rent with just a five-day notice, and there are no limits on the amount that landlords can charge for security deposits. This can make investing in rental properties less risky for investors.
- Availability of financing: Like many other cities, Milwaukee has a range of financing options available for real estate investors. Local banks and credit unions offer commercial real estate loans, and the city has a range of public-private partnerships that provide funding for development projects. Additionally, there are a variety of federal and state programs that offer to finance affordable housing projects and other real estate development initiatives.
Therefore, Milwaukee's real estate market offers several compelling reasons to invest. The city has a strong economy, affordable prices, a growing rental market, and a diverse population. These factors, combined with tax incentives and a robust infrastructure, make Milwaukee an attractive location for real estate investors. However, like any investment, there are risks involved, and investors should carefully consider their options before investing.
