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Thinking about investing in Milwaukee real estate in 2025? You're on the right track.
Despite economic shifts, Milwaukee's real estate market shows promising stability and growth potential.
In this blog post, we will explore why investing in this city's property market is a wise decision.
We rely on solid, up-to-date data and statistics from trusted sources to guide our analysis.
By the end, we will share our own conclusions based on a comprehensive review of the information. Enjoy the read!
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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1) Milwaukee has a "livability score" of 79, indicating it's a good place to live
Signal strength: moderate
The livability score of 79 in Milwaukee is considered good, indicating a favorable environment for residents. This score reflects several key factors that make Milwaukee an attractive place to live, which in turn supports the assumption that buying property here is a wise investment.
Firstly, Milwaukee boasts a strong sense of community, with numerous local events and festivals that bring people together, fostering a welcoming atmosphere. Secondly, the city offers affordable housing options compared to other major cities, making it an appealing choice for both first-time homebuyers and investors looking for rental properties.
Lastly, Milwaukee is known for its rich cultural scene, including museums, theaters, and a vibrant music scene, which enhances the quality of life for its residents. These characteristics contribute to the city's good livability score, making it a promising location for real estate investment.
However, if the livability score were to drop below 70, it might indicate underlying issues that could affect the desirability of investing in the area.
Source: AreaVibes
2) Milwaukee's 2025-2026 plans, like the "Harbor View Riverwalk" and Amtrak Hiawatha Expansion, are set to boost real estate values with new affordable housing
Signal strength: moderate
Milwaukee's 2025-2026 projects, including the Harbor View Riverwalk, Amtrak Hiawatha Expansion, and new affordable housing, are key drivers of potential real estate value growth in the area.
The Harbor View Riverwalk Project, set to boost the city's natural beauty and community spaces, is a magnet for residents and tourists. By offering amenities like a deck over the river and a live performance stage, it aims to boost local economic activity and make the area more attractive, which can lead to increased property demand.
The Amtrak Hiawatha Expansion is another strategic improvement that will make travel more convenient. By increasing train service frequency and reducing congestion, it enhances connectivity, making the area more appealing for commuters and businesses, potentially driving up property values.
New affordable housing developments are crucial for neighborhood revitalization. By providing more housing options, they support community growth and stability, which can lead to a rise in real estate values as the area becomes more desirable for a diverse range of residents.
Sources: Finance & Commerce, Bear Development, Urban Milwaukee, Urban Milwaukee
3) Airbnb or "short-term rental" in Milwaukee offers a decent profitability rate of 5.0%, making it a fairly appealing investment
Signal strength: moderate
The cash-on-cash return on Airbnb in Milwaukee is 5.0%, which is a moderately attractive figure for potential investors.
This percentage indicates that the rental income from short-term tenants can provide a decent return on the initial cash investment. Milwaukee attracts a variety of short-term tenants, including business travelers attending conferences, tourists visiting for cultural events, and sports fans attending games.
These visitors often seek accommodations that offer a local experience, making Airbnb properties appealing. Milwaukee's vibrant festivals and events draw tourists who prefer short stays, contributing to the demand for Airbnb rentals.
If the cash-on-cash return were to drop below 3.0%, it might suggest that the investment is less favorable, as the returns would not sufficiently cover the costs and risks involved.
Source: Mashvisor
4) The "cash-on-cash return" of 7.0% for long-term rentals in Milwaukee is reasonably appealing
Signal strength: moderate
The cash-on-cash return of 7.0% in Milwaukee indicates that investors can expect a moderate return on their initial cash investment. This percentage is a sign that the market is performing well enough to generate steady income from rental properties, making it an attractive option for investors.
Milwaukee is home to a diverse range of long-term tenants, including students attending local universities and professionals working in the city's growing industries. These tenants often seek stable housing options, providing landlords with consistent rental income over time.
Additionally, Milwaukee's affordable cost of living attracts families and retirees looking for budget-friendly housing solutions. This demand for rental properties helps maintain low vacancy rates, further supporting the investment potential in the area.
If the cash-on-cash return were to drop below 5.0%, it might suggest that the market is less favorable for investors.
Source: Mashvisor
5) Milwaukee's median home price is significantly lower, at 53% less than the national average
Signal strength: minimal
The fact that Milwaukee has a median home price 53% below the national average suggests that there is significant room for property value appreciation. This makes it an attractive market for investors looking to buy low and potentially sell high.
In Milwaukee, the most expensive properties are likely luxury condos located in the downtown area, where demand for urban living is high. On the other hand, the cheapest properties are probably small single-family homes in neighborhoods like Lincoln Village, which are more affordable and may offer good rental opportunities.
Investing in these lower-priced areas can be a strategic move, as property values in such neighborhoods have the potential to rise as the city continues to develop. This could lead to a good return on investment over time.
However, if the median home price in Milwaukee were to rise to match or exceed the national average, it might indicate that the market is becoming less favorable for new investments.
Source: Zillow
6) A local in Milwaukee could afford a house in about 3.8 years, which is reasonable
Signal strength: minimal
In Milwaukee, it would take around 3.8 years for a local to buy a house, which is a reasonable timeframe compared to many other cities.
This is based on the median household income of approximately $53,000 and the median home price of about $203,000. These figures suggest that homes are relatively affordable for local residents, making it easier for them to enter the housing market.
When locals can afford to buy homes, it often indicates a stable market, which is a positive sign for potential investors. The fact that it takes less than four years of income to purchase a home suggests that the market is not overly inflated, reducing the risk of a housing bubble.
If it took significantly longer, say over six years of income to buy a home, it might indicate that the market is becoming less accessible and potentially overvalued.
Source: USCensus
So, is it a good time to invest in Milwaukee real estate in 2025? Absolutely, it is.
Investing in Milwaukee real estate in 2025 is a solid option for several compelling reasons.
First, Milwaukee's livability score of 79 highlights its appeal as a great place to live, with a strong community, affordable housing, and a rich cultural scene. These factors make it an attractive location for both residents and investors. Additionally, the city's upcoming projects, like the Harbor View Riverwalk and Amtrak Hiawatha Expansion, are set to enhance the area's desirability and boost property values.
Moreover, Milwaukee offers a cash-on-cash return of 7.0% for rental properties, indicating a healthy market for generating steady income. The median home price is 53% below the national average, providing significant potential for appreciation. Lastly, with locals able to afford a house in about 3.8 years, the market remains accessible and stable, reducing the risk of a housing bubble.