Learn more about the housing market in Wisconsin

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.

Wisconsin Housing Market Overview

Known for its forests and farmlands, Wisconsin is a state in the Midwest surrounded by Lake Michigan and Lake Superior. According to data from IBISWorld, Real Estate, Rental, and Leasing was the second-highest contributor to the state’s 2023 GDP, behind only manufacturing. This suggests a notable housing market in the state that is worth exploring further.

At the beginning of the year, experts predicted that the housing market in Wisconsin would continue to see an increase in both housing prices and the number of prospective buyers, though the interest rates across the state would settle. As of April 2024, these predictions all appear to have come true, with certain indicators that these trends will continue.

In fact, historically high interest rates have seen a significant decrease across the country. The national average 30-year fixed mortgage rate in late 2023 approached 8%, but settled in April 2024 to just below 7%. As we will discuss later in this article, a similar trend can be seen in the Wisconsin housing market, reflecting easing inflation that is bound to benefit a growing demographic of prospective homeowners across the country.

Wisconsin Market Trends

To understand the Wisconsin real estate market, it’s important to keep up with trends. Let’s take a look at some key ones below.

Note: These statistics are based on Redfin’s monthly housing data from April 2024

Median Housing Price

The median price of a home in Wisconsin in April 2024 was $323,900, according to Redfin’s monthly housing market data. This is an increase of 8.6% from April 2023, accurately reflecting predictions of continually increasing housing prices in the state. In Milwaukee, the most populous city in the state, the median housing price was slightly lower in April 2024 at $215,000, itself a 9.1% increase from April 2023. It is important to remember that in any state, statewide data is pulling from a plethora of housing markets experiencing a variety of different influences and factors.

Number of Homes Sold in April 2024

6,431 homes were sold in Wisconsin in April 2024, which is a 12.5% increase from the previous year. This number can be expected to increase in the summer months. It is important to keep in mind that nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%.

Despite this, number of home sales from the previous two years have failed to reach the same peaks that were recorded in the summers of 2020 and 2021.

Median Days on Market (DOM)

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage.

The median DOM in Wisconsin in April 2024 was 42 days, which is an increase of only one day from the previous year. This means that, on average, listings spend about a month and a half on the market before they are purchased. Though it has remained relatively stagnant, a rising DOM suggests an increasingly less competitive housing market.

New Supply Statistics

In 2021, there were about 4.32 new residential construction permits per 1,000 people in Wisconsin. This statistic, which points to housing inventory growth, is higher than the nationwide average. Increased housing supply is predicted to ease housing prices and increase affordability in many markets across the U.S. in 2024.

Property Tax Rates

According to Rocket Mortgage, the average property tax rate in Wisconsin is 1.61%. This is one of the highest property tax rates in the country, lower than only seven other states. The average annual property tax in the state is $1,635.57. As previously mentioned, it is important to keep in mind that this statistic reflects the average of a lot of data with significant geographic and economic diversity. Tax rates are likely to vary depending on the value of a home and its location in the state.

Foreclosure Rate in Q1 of 2024

In the first quarter of 2024, 1 in every 3,076 homes in Wisconsin experienced a foreclosure filing, according to recent data from ATTOM. This rate is significantly lower than the nationwide median, and the state is ranked 41st in the country for its foreclosure rate.

Hottest Local Markets in Wisconsin

1. Milwaukee

Located on the eastern edge of the state near the coastline to Lake Michigan, Milwaukee is the most populous city in Wisconsin. The median housing price in Milwaukee in April 2024 was $215,000, which is lower than the statewide median by a significant margin. The median DOM in the state is also lower than the statewide median at 38 days, which is an increase of two days from the previous year. This means that Milwaukee has a relatively more competitive housing market than the state as a whole. Some of the most popular neighborhoods in Milwaukee are Bay View, Lower East Side, and Old North Milwaukee.

2. Madison

Madison is the capital city of Wisconsin, and is also the second-most populous city in Wisconsin behind Milwaukee. The median housing price in the city in April 2024 was above the statewide median at $425,000, which is a 9.5% increase from the previous year. The median DOM in the city was 33 days, which is an increase of only one day from the previous year. This suggests a housing market that is more competitive than both the statewide median and Milwaukee. Some of the most popular neighborhoods in Madison are Downtown Madison, Marquette, and Regent.

3. Kenosha

South of Milwaukee and near Wisconsin’s southern border to Illinois, Kenosha is also one of the most populous cities in the state. The city’s median housing price in April 2024 is above the statewide median but relatively close to it at $259,000. This is a 5.9% increase from the previous year. Its median DOM of 37 days is also lower than the statewide median, meaning that it is a relatively more competitive housing market than the state as a whole. Some of the most popular neighborhoods in Kenosha are Forest Park, White Caps, and Lance.

Economic Factors Impacting the Wisconsin Housing Market

A holistic view of Wisconsin’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s take a look at a few below.

Mortgage Rates

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2024. As previously mentioned, national averages have dipped from last fall’s record highs, and Wisconsin is no different. According to Zillow, current average 30-year fixed mortgage rate is down to 6.31% after approaching 7.75% at the end of 2023. This accurately reflects predictions that interest rates in 2024 would settle but stay above an average of 6%.

Inflation and Cost of Living

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Wisconsin. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income.

Population Changes and Demographics

A changing population ca also have implications for the housing market. According to the U.S. Bureau of Labor Statistics, the unemployment rate in Wisconsin is down to 2.9%, making it one of the lowest current rates in the country. It is ranked 11th for lowest unemployment rates in the country, though unemployment rates are down in just about every state nationwide. This suggests economies that are thriving and bounud to both create and attract potential homeowners, including in Wisconsin.

Wisconsin Housing Market Predictions 2024

As previously mentioned, experts considered the housing market Wisconsin has been facing over the past few years and predicted that prices would continue to rise throughout the year. This has proven true over the course of the year, though steadying interest rates and a hope for increased supply in the housing market signified by an increase in sales may indicate a slowing growth in prices.

Likelihood of Wisconsin Housing Market Crash

Continually rising housing market prices in Wisconsin may have some asking when will the housing market crash in Wisconsin? However, experts have maintained that a crash is significantly unlikely. There are many reasons for this, including a healthy economy signified by low nationwide unemployment rates and the decline and stabilizing of interest rates. The market seems poised to continue appreciating, but it is unlikely to reach any significant or concerning threshold in the near future. 

Forecast for the U.S. Housing Market

Now that we’ve looked at Wisconsin’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years?  

The United States’ current median existing-home sale price is around $384,500 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 2.9.

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Wisconsin Rental Market

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year.

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread. 

This short summary leads directly into Wisconsin’s current rental market. Below are just a few of the current trends for Wisconsin’s rental market based on data pulled from Zillow:

Wisconsin Rental Market Key Trends

• Median rent: $1,295 

• Month-over-month rent change: $0 

• Year-over-year rent change: $95 

• Available rentals: 5,117

Conclusion

As we have covered throughout this article, any state’s housing market is bound to be made up of diverse influences, factors and variables, and summative data cannot tell the whole story. However, as a whole, the Wisconsin housing market in 2024 has seen many significant indicators of a stabilizing and healthy housing market that buyers and sellers alike should watch closely. Experts and analysts will continue to monitor this market, as well as nationwide factors like interest rates and new construction.