MARKET SNAPSHOT
Apartment development in the Milwaukee metro area is decelerating, with the volume of units under construction at the end of 2024 dropping nearly 39% compared to the previous year. New unit completions are also projected to decline by nearly 50% in 2025. This lower pace of development is expected to persist, as apartment starts—a leading indicator of future deliveries—fell by 49%, with developers breaking ground on just 1,500 units in 2024 across the metro. As a result, market conditions are anticipated to tighten significantly in the latter half of 2025 and beyond.
Downtown Milwaukee continues to lead in apartment development, fueled by strong demand for urban living as many downtown employers have recalled employees to the office over the past year. Suburban submarkets like Eastern Waukesha County and Southern Ozaukee County are also seeing increased construction activity, driven by demand for large, amenity-rich developments in areas with good school districts.
Looking ahead, Milwaukee’s record supply wave will further recede in 2025, with new deliveries concentrated in six of the sixteen metro submarkets, led by the Downtown submarket. As major projects near completion, supply constraints are likely to intensify in 2026 and 2027.
Milwaukee experienced a moderate rise in rental demand in 2024, driven by consistent absorption throughout the year. Approximately 2,200 units were absorbed last year, representing a 20% increase compared to 2023. This strong demand has sustained Milwaukee’s historically high occupancy rates, which remained steady between 95.9% and 96.4%, reflecting typical seasonal leasing trends.
Looking ahead to 2025, new supply in Milwaukee is expected to decline significantly, falling to its lowest level since 2015 with a 40% drop compared to 2024. Assuming stable economic conditions, low unemployment, and steady job growth, the Milwaukee multifamily market is projected to experience modest improvements in occupancy fundamentals throughout the year. Among Milwaukee’s sixteen submarkets, ten are forecast to see slight increases in average occupancy rates, ranging from 10 to 30 basis points. The remaining six submarkets are expected to show minimal change or minor declines of 10 to 20 basis points. Overall, the market is expected to achieve a 10-basis-point increase in average occupancy, ending 2025 at 96.0%.
Milwaukee’s multifamily market has demonstrated resilience, bolstered by low vacancy rates and a manageable construction pipeline. Unlike many markets outside the Midwest, Milwaukee has avoided significant rent cuts. Since 2022, the metro’s rent growth has consistently exceeded the national average, achieving a sustainable annual rate of 2.5% in 2024, well above the national average of 1.0%, and ending the year with an average monthly rent just below $1,400.
Looking ahead, rents are projected to strengthen further, with annual growth peaking at 3.2% in Q3 2025 before easing to 2.9% by year-end, bringing the average monthly rent to $1,439 in Q4 2025. Submarkets such as Outlying Waukesha County and Southern Ozaukee County are expected to lead rent growth, with increases of 4.1% and 4.0%, respectively, by Q4 2025. These areas also boast some of the highest occupancy rates in the market, driven by their strong community appeal, which often results in rents exceeding the metro average.
12-month period ending November 2024
Milwaukee’s multifamily market is poised for stability and modest growth in 2025, supported by its affordability, resilient demand, and manageable supply pipeline. New apartment construction is projected to decline significantly, reaching its lowest level since 2015, with a 40% drop in deliveries compared to 2024. This slowdown in development is expected to tighten market conditions, maintaining occupancy levels among the highest in the nation at a projected 96.0% by year-end.
The metro’s economic outlook remains strong, with unemployment forecasted to average 3.9% and the addition of 5,100 new jobs—a 0.6% increase—ranking Milwaukee among the top-performing large U.S. metros. Suburban submarkets like Eastern Waukesha County and Southern Milwaukee County continue to attract demand, particularly for large, amenity-rich developments in areas with strong school districts. However, limited new supply in these submarkets is anticipated to keep competition tight and rents growing on an upward trajectory. Downtown Milwaukee remains a focal point for new development, benefiting from population growth, RTO mandates, and investments in infrastructure.
Overall, Milwaukee’s affordability, strong demand for rental housing, and robust economic fundamentals position the metro for continued rent growth, projected to accelerate to 3.2% by Q3 2025 before moderating to a steady 2.9% by year-end. These factors, coupled with a manageable supply pipeline, reinforce Milwaukee’s standing as one of the most stable multifamily markets in the Midwest.
