Milwaukee Investment Property for Sale - 2024 Rental Home Appreciation

State: Wisconsin


The Milwaukee real estate market is hot, hot, hot! High demand for affordable homes and low inventory is creating fierce competition that's keeping real estate agents busy while driving home values up. Most homes sell in 44 days and for above the listing price.

According to Realtor, the median listing price in Milwaukee is $130 per square foot with a median sale price of $174,900. Zillow's Home Value Index reports a 14.3% change since last year. The median rent in Milwaukee is $1,050 per month.

Milwaukee's affordable housing prices, demand, and appreciation should put it on any real estate investor's list.

Milwaukee's Attractive Housing Market

Real estate investors can find nearly every property type in Milwaukee's property listings. They include condos and single-family homes, as well as adaptive reuse conversions. In fact, Milwaukee is ranked among the top 10 cities for converting old buildings into unique residential apartments. Whatever you're looking to invest in, Milwaukee has it.

The Milwaukee area is home to many great neighborhoods for investors to consider. They include Bay View, Brewer's Hill, East Side, Juneau Town, and West Allis.

  • Bay View: Bay View is located along the shores of Milwaukee Bay just south of Downtown Milwaukee along I-794. It's a trendy neighborhood with many ethnic restaurants and boutique shops that attracts young professionals. The median listing price in Bay View is $205/sqft, and the median sales price is $259,900. The median rent is $1,250/month.
  • Brewer's Hill: Brewer's Hill is located north of Downtown Milwaukee between I-43 and the Milwaukee River. It was once a residential neighborhood for the city's laborers but has been transformed into a quirky, bike-friendly neighborhood. The median listing price in Brewer's Hill is $183/sqft, and the median sales price is $279,900. The median rent is $1,620/month.
  • East Side: East Side is located along the shores of Lake Michigan, north of Downtown Milwaukee along I-794. It's a hip, trend-setting neighborhood that's a melting pot of young professionals, college students, and long-term residents. The median listing price in East Side is $248/sqft, and the median sales price is $264,950. The median rent in the Upper East Side is $985/month, and the median rent in the Lower East Side is $900/month.
  • Racine: Racine is located 22 miles south of Milwaukee between I-94 and Lake Michigan. It's home to the largest Danish settlement outside of Greenland and is known for its bakeries. The median listing price in Racine is $128/sqft, and the median sales price is $175,000. The median rent is $1,300/month.
  • West Allis: West Allis is in west Milwaukee along I-94 and I-41. It's home to nearly 20 parks and a diverse dining scene. The neighborhood's affordability and school district attract a lot of families. The median listing price in West Allis is $163/sqft, and the median sales price is $199,950. The median rent is $900/month.

A few other neighborhoods worth noting are Waukesha, an award-winning community located 15 miles west of Milwaukee; Brookfield, home to Brookfield Square and a great school district; Juneau Town, home to Marquette University; and Elm Grove, known for its excellent school district and small-town feel.

Rental Home Appreciation in Milwaukee

Milwaukee's solid rental market creates a lot of demand for affordable rental properties. In fact, 40% of households in Milwaukee are renter-occupied, and the city only has a 3.2% vacancy rate.

Experts project real estate investors can expect a cap rate of 6.66% in the Milwaukee metropolitan area.

Combine a robust rental market with increasing property values and the affordability of Milwaukee homes, and it's almost a no-brainer. A Milwaukee rental property has the potential to yield significant returns for homeowners, real estate investors, and property management companies.

Economic Growth in Milwaukee

Milwaukee is the largest city in Wisconsin. It's nearly twice the population of Madison, the state's capital and second-largest city. It's also the third most populous metropolitan area in the Midwest, behind Chicago and Detroit.

Milwaukee's primary industries are manufacturing, agriculture, and tourism. Johnson Controls, Aurora Health Care, ManpowerGroup, and Rockwell Automation are the largest employers. The Milwaukee area is also the headquarters of Kohl's, Harley-Davidson, and Briggs & Stratton. These employers provide well-paying jobs and fuel the city's economy. In fact, the median household income in Milwaukee has increased by 8.58% since last year, and the unemployment rate is just 3.6%.

The Milwaukee real estate market offers homebuyers and real estate investors affordability, demand, home price appreciation, and a stable economy. They combine to create a tremendous investment opportunity.

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