The Most Cut-Throat Real Estate Market In The U.S. Is Not New York But Milwaukee, As Inventory Shrinks And Demand Explodes

When you think of cut-throat real estate markets, Milwaukee is not a name that readily comes to mind. However, according to the Wall Street Journal, the midwestern city, with a population of 600,000, known for its beer and cheese, has renters locked in fierce battles to find a place to live.

According to data from RentCafe, an apartment search website, at the beginning of the year, Milwaukee had a 94% occupancy rate for its apartments. Over 70% of tenants renewed their leases, and eight renters completed each apartment. 

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“You might not think of Milwaukee as being hot, hot, hot, but that is what its housing market is right now,” Suzanne Powers, broker-owner of Milwaukee-based Powers Realty Group, told the Journal.

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Why Milwaukee Is Such A Draw

Like many Midwest cities, Milwaukee is going through something of a boom with Fortune 500 companies such as Northwestern Mutual, PwC, Fiserv FI, and Rockwell Automation located there, as well as up-and-coming businesses and industries, and a thriving tech hub. However, despite the rental competition, one of the main draws is the relatively low cost of living. According to Payscale, Milwaukee is only 1% above the national average but considerably lower than major cities such as New York and Los Angeles.

Rent Prices

Rent is creeping up in Milwaukee. According to RentCafe, the average rent is now $1,552, which is up 30% since February 2020 for an 849-square-foot apartment, and 58% of households are renter-occupied. 

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Why There Is So Much Rental Demand

There is a chronic housing shortage due to high interest rates and increased construction costs. “No one can figure out how to build for the people in the middle, who represent the largest percentage of the population,” Chad Venne, the real-estate program director at the University of Wisconsin-Milwaukee, told the Journal. Tariffs could pose another issue in finding equilibrium for the housing market. “This could lead to an increase in the cost of new single-family homes and apartment rents,” Venne said. 

Inward and Outward Migration

Unsurprisingly, with the Milwaukee market being so tight, other nearby markets have seen a spill-off. In the summer, Realtor.com reported that Oshkosh, about 90 minutes from Milwaukee, was the hottest market in the country, attracting Milwaukee buyers looking for cheaper housing.

“Oshkosh is a very nice town with a much lower cost of living than Milwaukee or the Upper Valley,” Chris Siamof, with Berkshire Hathaway HomeServices, told the outlet. “This draws many people to the area.”

Generally, however, there has been an almost equal number of people coming and going to the greater Milwaukee area, according to the U.S. Census Bureau. Around 30,000 people moved to Wisconsin in 2024. “The national increase in immigration has definitely had an impact on our population here in Wisconsin,” Mark Sommerhauser, communications director at Wisconsin Policy Forum, told Wisconsin Public Radio.

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Milwaukee added 3.000 new residents for the first time in 10 years, data showed. However, while 6,000 new residents were moving to Milwaukee from abroad, 5,600 people left the county — the highest domestic out-migration from any Wisconsin county in 2024.

“It’s going to take even greater partnerships at the state and federal level to make sure that we’re investing in the people who are coming into our community,” said Milwaukee County Executive David Crowley. 

And more housing.

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