Knowing the variables that can affect the outcome of your investment helps you make informed decisions before you make any real estate purchases. While no one can guarantee what the economic conditions will be in the future, a forecast is the next best thing. Knowing what is likely coming for the year will ensure you put your eggs in the right basket.
At Performance Asset Management, we always keep our finger on the pulse of Wisconsin’s housing market in order to protect rental property owners. Read on for expert insights on what to look out for this year.
Home Prices
The housing market predictions might seem familiar to previous years, consistently showing increased home sale prices. Milwaukee, in particular, saw an 8.7% increase in median sale price from December 2023 to December 2024. Despite that, there is still a sustained demand seen with investors, meaning that the industry will continue to grow.
However, The Luxury Playbook states that housing inventory levels have also seen changes in the last year with homes sold after 44 days on the market, which is longer than the previous year wherein real estate properties were sold after 41 days. More median days on the market means investors have more time to make decisions.
It bodes well that Milwaukee homes are usually sold for about 99% of the list price, which shows a more balanced market wherein neither the seller nor the investors have an advantage over the other.
Mortgage Rates
Financing real estate from Wisconsin's housing market might be a little tougher in the succeeding months considering that there have been signs of a rate increase in mortgages. Most of 2024 had rate trends at around 7%, bottoming out at 6.2%, but this has been increasing since the beginning of 2025. Bankrate predicts that the mortgage rate will balance out to 6-7% in 2025.
It has been pointed out that other economic factors can affect home ownership such as the rising cost of housing, especially in popular areas like Milwaukee. The median home price has gone up to 8.5% year-over-year. Since October 2023, there has been a 7.1% increase in median sale price, leading to an average cost of $300,000 by 2024.
Housing Demand
Demand is an incredibly important factor to consider when researching Wisconsin's housing market predictions, given that it ensures steady demand in rentals. Wisconsin's housing market had 16,460 homes for sale in December 2024, which was up by 6.4% from the previous year, although newly listed homes were only at 2,655, which was down 5.3% year-over-year.
Even with those statistics on housing supply, the state is still experiencing a shortage in housing. There has been a steady growth in housing demand, so much so that the League of Wisconsin Municipalities predicts that 200,000 housing units need to be built by 2030 to accommodate all the people who want to live in Wisconsin due to increased demand.
Population Growth
The United States Census Bureau recorded that Wisconsin had a total population of 5.894 million in 2020, which saw a slight increase to 5.931 million by early 2025. It shows competitive market trends throughout the year, and potentially a modest growth in rental demand. Of course, the median household income is just as important to assess housing affordability.
Employment Rates and Income
The Wisconsin Department of Workforce Development projects that the state will "create 82,867 new jobs, growing by 2.47% across all industries." Job growth can lead to investors affording mortgage rates as they can pay at a more sustainable pace, depending on the home prices in the housing market.
In 2023, the median income per household is at $74,631 and has since dropped in the past year to $72,458. On the bright side, the unemployment rate has gone down to 2.9% by November 2024 compared to 3.4% in November 2023, which can help lighten the weight of inflation in the housing market.
Property Taxes
The property tax rate in Wisconsin is among the highest in the US with a 1.59% rate. It is the 8th highest out of all the states. "In 2024, the combined property tax rate is $22.93 per $1,000 of assessed value," the Milwaukee Journal Sentinel reports. The tax rate has, however, gone down by $0.70 from the previous year.
Despite the high tax rates, Milwaukee remains one of the best locations for real estate investing given that the business sector is looking promising. With rental businesses, smooth operations can easily offset tax costs.
What Can Home Buyers Do?
Monitor the Housing Market: Monitoring the market for price drops can help you save a lot. While market trends show that home prices have been increasing in the past few years, you might find the right property for your investment goals by executing with precise timing.
Consult Professionals: Consulting experts in the field like real estate agents can give you proper insight into market dynamics to help you make informed decisions before making a huge purchase.
Compare Prices: The median price for Wisconsin homes is around $301,659, which has seen a steady increase year-over-year. Check for key factors factors influencing your decision such as rent-readiness or repairs needed.
Long-Term Considerations: Wisconsin is a promising place to purchase real estate, especially rental properties. Consider the long-term potential of the market and not just the year ahead, especially if you intend to keep the property for a while.
What Can Home Sellers Do?
Be Flexible: High interest rates have deterred homebuyers from purchasing properties in 2023, but inflation has since stabilized since then. That's not to say that you shouldn't be flexible. Adjust your pricing strategy based on purchasing power to attract buyers.
Watch Out for Current Trends: Knowing the current economic state lets you set prices right for potential homebuyers looking for new housing. Check whether there is a high demand for housing or if a low interest rate is justified.
Regional Market Analysis: Since the housing market is not uniform across Wisconsin, it's important to analyze particular regions to determine whether there are growths or declines in numbers that can affect your sales.
Prepare the Property: You have to check several factors such as safety and habitability to ensure that you won't run into legal problems. Improving curb appeal could also help you get multiple offers from more buyers.
Need Any Help?
Matters in the housing industry are complex, and the right expertise can lead to the most profitable or cost-effective outcome for you. Hiring or consulting real estate professionals is in your best interest. Performance Asset Management can help you with that, and more. Contact us now and we can guide you through the process of purchasing or selling real estate properties!
