Milwaukee is now on the investor radar and is look set to be one of the best investment cities in 2020. Milwaukee is following in the footsteps of other categorised rust belt cities like Pittsburgh, Buffalo and Cleveland to name a few. These cities have seen large-scale investment, rising house prices and high rental demand and Milwaukee is no exception to this.
CNBC ran an article at the end of last year called, “Why millennials are flocking to Rust Belt real estate.” The article centred around why States like Ohio, Michigan and Wisconsin are seeing an influx of younger buyers in search of more affordable living.
Milwaukee metropolitan area is home to around 600,000 people, Downtown is undergoing revitalization, and the city is starting to attract college students who moved there following jobs. Milwaukee is the largest city in the state of Wisconsin and the fifth-largest city in the Midwestern United States. It is located on Lake Michigan’s western shore. Milwaukee is the main cultural and economic centre of the Milwaukee metropolitan area, which has a population of over two million people as of 2018.
Compared to other US cities Milwaukee real estate is cheap and very well priced, there is also a a very large Renter’s market so demand for rentals is high.
Overall Milwaukee has a constrained supply of properties and this is pushing up rent levels in and around the city, apartment rentals are expensive so this mean renters are heading to suburbs for more affordable rent. Low property prices and high rental amounts equate to a strong ROI, in fact Milwaukee can offer investors one of the best ROI’s in the US.
The limited supply of houses in Milwaukee has pushed up prices, and that should continue in 2020. According to Zillow, the median home value in Milwaukee is now $123,300. Milwaukee home values have gone up 7.6% over the past year and Zillow’s Milwaukee real estate market prediction is that the prices will rise 3.3% within the next year. The average sale price per square foot in Milwaukee is $112, up 5.7% since last year.
Milwaukee was listed as the third healthiest market based on employment, demographics, mortgages, and housing prices.
The Rental Market
It has taken Milwaukee a long to recover for the recession of 2008 but this year the bounce back is very noticeable, prices are low compared to places like Los Angeles, Washington, or even Chicago but houses are going on the market and coming off the market within hours in some areas.
This high level of demand for housing is starting to put pressure on the rental market, a recent study by the Wisconsin Policy Forum shows more than half of Milwaukee County households in were occupied by renters. Only 10 similar-sized counties in the U.S. have higher rates of renter households than Milwaukee County, which has the highest percentage of renter households in the Midwest.
Rents are rising in metro Milwaukee as young adults establish their own place and baby boomers look for high-end empty nests. While average rent prices for 2019 vary depending on the source, all indicate overall prices have gone up since last summer. Rent for a one-bedroom apartment in the four-county Milwaukee metro area — not including senior, student or military housing — increased about 2% between June of this year and June 2018, to $1,093 a month from $1,066, according to the commercial real estate data company CoStar Group Inc.
RealPage reported that nationwide, rents for new leases increased 1.8% during the second quarter and rose 3% from year-ago levels. Milwaukee made the top 10 list of cities where rent has increase the most in the last 12 months.
Milwaukee is the largest city in Wisconsin and the 30th most populous city in the USA. It is also the center of the Milwaukee-Waukesha-West Allis Metropolitan Statistical Area with a population of 1.57 million. In 2016, Milwaukee had a population exceeding 600,000.
Milwaukee is the main cultural and economic center of the Milwaukee metropolitan and is the third-most densely populated metropolitan area in the Midwest, surpassed only by Chicago and Detroit, respectively. Milwaukee is considered a Gamma global city as categorized by the Globalization and World Cities Research Network with a regional GDP of over $105 billion.
Growth and Returns
Milwaukee city has been undergoing its largest construction boom since the 1960s.Major new additions to the city in the past two decades include the Milwaukee Riverwalk, the Wisconsin Center, Miller Park, The Hop (streetcar system), an expansion to the Milwaukee Art Museum, Milwaukee Repertory Theater, and Pier Wisconsin, as well as major renovations to the UW–Milwaukee Panther Arena.
The Milwaukee Region is a natural magnet for business. It ranks sixth among major metro areas nationwide in the number of corporate headquarters per capita.
Affordable land and leasing costs, abundant fresh water, an educated workforce, low business costs and easy access to financing, technical assistance and efficient infrastructure have helped businesses succeed and grow.
In total, the Milwaukee region flourishes with more than 50,000 business establishments, 1 million employees and a gross regional product of more than $99 billion.
Management and Aftercare
In Milwaukee we work with one, reliable and consistent partner who is local to the area and has been a hands-on expert in the local market for over 10 years. Our partner is one of the leading Milwaukee management companies who will collect and deposit your rent, maintain and repair the property, assess and interview tenants and keep you updated on a regular basis.