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.

Key Takeaways

1. Wisconsin’s housing market is stabilizing going into 2026, with modest price growth, slightly higher inventory, and slower sales activity in many markets.
2. Mortgage rates have eased from 2023 peaks, contributing to steadier buyer activity while affordability challenges remain for some households.
3. New construction and permit activity increased in 2025, supporting gradual supply expansion and helping temper price acceleration across the state.
4. Rental affordability remains strained, even as rent growth has cooled and market conditions have become more balanced than in prior years.

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 had a growth of 3.4% and was the second-highest contributor to the state’s 2025 GDP, behind only manufacturing. This suggests a notable housing market in the state that is worth exploring further.

At the start of 2025, analysts expected Wisconsin’s housing market to see continued price growth and steady buyer demand, even as mortgage rates began to stabilize. Through late 2025, that outlook has largely stayed true. Home prices have risen modestly in many markets, inventory has improved slightly from prior lows, and buyer activity remains resilient heading into 2026.

Mortgage rates climbed to near-historic highs in 2023, but they have eased through 2024 and 2025, settling closer to the mid 6% range for many borrowers. A similar trend is evident across Wisconsin, where easing inflation and rate stabilization have helped improve affordability at the margins, supporting a more stable and sustainable pace of market activity as the state moves into 2026.

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 November 2025

Median Housing Price

The median price of a home in Wisconsin in November 2025 was $331,600, according to Redfin’s monthly housing market data. This is an increase of 4.7% from November 2024, 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 lower in November 2025 at $225,000, itself still a 2.3% increase from the previous year. 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 November 2025

5,028 homes were sold in Wisconsin in November 2025, which is a 6.7% decrease 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 52 days, which is an increase of only two 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 2025, Wisconsin saw modest growth in new residential construction permits, with the Wisconsin Builders Association reporting an 8.7% increase in single-family housing permits issued in the second quarter of the year compared with the same period in 2024, signaling continued momentum in housing starts. Overall, total permits statewide topped roughly 10,399 through late 2025, up about 1.9% year-to-date, reflecting expanding housing supply that may help moderate price growth and support affordability as the market moves into 2026.

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 October of 2025

In the October of 2025, 1 in every 9,049 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 43rd in the country for its foreclosure rate as we head into 2026.

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 November 2025 was $225,000, 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 45 days, which is an increase of only one day 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 November 2025 was above the statewide median at $445,000, which is a 6.5% increase from the previous year. The median DOM in the city was 54 days, which is an increase of only four days 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 November 2025 is above the statewide median but relatively close to it at $281,000. This is a 6.7% increase from the previous year. Its median DOM of 39 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 2026. As previously mentioned, national averages have dipped from record highs, and Wisconsin is no different. According to Zillow, current average 30-year fixed mortgage rate is down to 5.99% at the end of 2025 after approaching 7.75% at the end of 2023. This accurately reflects predictions that interest rates would settle around an average of 6% as we head into 2026.

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 3.1%, making it one of the lowest current rates in the country. It is ranked 9th for lowest unemployment rates in the country. This suggests an economy that is thriving and bound to both create and attract potential homeowners, including in Wisconsin.

Wisconsin Housing Market Predictions 2026

As Wisconsin moves into 2026, earlier predictions of continued price appreciation have largely held true, though growth has slowed compared with prior years. Home values in many markets have continued to trend upward at a more moderate, sustainable pace, as easing mortgage rates and gradually improving inventory have reduced some of the competitive pressure that previously drove rapid price gains.

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 in 2026. 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 $415,200 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 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. 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 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

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. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% 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. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. 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.

Renter affordability remains a concern in Wisconsin heading into 2026, even though rent growth has moderated compared with early-decade spikes. Average rents in the state are around $1,200 per month in late 2025, with major cities like Milwaukee reporting rents near $1,250 and other markets showing steady year-over-year increases.

Although rental increases have cooled in many areas, rents in Wisconsin still outpace income growth for many households, contributing to ongoing financial stress among renters. Local reports highlight that housing costs have climbed steadily and that housing financial strain is more common among renters than homeowners.

Higher borrowing costs and tighter lending standards have limited new multifamily investment, constraining the pace of future rental supply expansion and maintaining affordability pressures. As a result, Wisconsin enters 2026 with a rental market that is more stable than peak pandemic years, but where many renters continue to face cost burdens relative to local incomes.

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: $1,328

• Month-over-month rent change: +$3

• Year-over-year rent change: +$33

• Available rentals: 7,133

Conclusion

Wisconsin’s housing market is shaped by a wide range of regional and economic factors, and statewide averages can’t capture every local trend. Overall, however, the market heading into 2026 shows continued signs of stabilization, with slower but steady price growth, modest inventory improvement, and more balanced conditions than in prior years. Buyers, sellers, and investors should continue to watch local dynamics alongside broader influences such as mortgage rates, construction activity, and population trends.

FAQs

What is the outlook for Wisconsin’s housing market in 2026?

The market is expected to remain stable with slow, sustainable price appreciation, as easing mortgage rates and gradually improving inventory help reduce the intense competition seen earlier in the decade.

Is Wisconsin currently a buyer’s market or a seller’s market?

Most areas remain slightly seller-leaning, but rising inventory and longer days on market are pushing conditions closer to balanced in several metros.

Are home prices still rising in Wisconsin?

Yes, but at a more moderate pace than in previous years. Many markets are seeing modest year-over-year increases, while some remain relatively flat depending on local demand and supply levels.

How are mortgage rates affecting Wisconsin buyers?

Mortgage rates have come down from near-historic 2023 highs and are closer to the mid-6 percent range. This has improved affordability somewhat but borrowing costs are still higher than pre-pandemic levels.

What challenges remain for Wisconsin renters in 2026?

Even with slower rent growth, rents remain high relative to income for many households, especially in larger metros. As a result, cost burdens are still common despite a more stable rental environment.