Milwaukee was ranked near the bottom among 50 U.S. metro areas for the strength of its multifamily housing market, despite a growing renter pool and low vacancy rates.
The ranking comes from Marcus & Millichap’s ‘26 Multifamily National Investment Forecast, which was published yesterday by the national brokerage firm. The report highlights cities from across the country, including the state’s largest housing market in southeastern Wisconsin.
Milwaukee ranked 47th in the firm’s National Multifamily Index for the year, which rates major U.S. markets on various factors such as job growth, vacancy rates, construction trends, housing affordability, rent and more.
The Milwaukee area’s average effective rent is expected to rise 2.2% this year to $1,692 per month, the report shows. That’s the slowest year-over-year growth since 2020.
Meanwhile, Milwaukee’s vacancy rate is expected to dip down to 3.6% this year due to “plummeting new supply” and steady renter demand. Authors note that’s among the best in the country and below the metro area’s average for the prior decade.
But that strength is offset by a “weak” labor report, as Milwaukee is projected to lose 8,000 jobs this year. That’s the third largest forecast among major U.S. metro areas, authors note.
Still, Milwaukee’s elevated home prices and mortgage costs are driving growth in the number of renters, sustaining demand for attainable apartments in the area.
“Milwaukee’s multifamily fundamentals are showing resilience,” Marcus & Millichap Senior Managing Director Todd Lindblom said in a statement.
At the same time, “employment headwinds” and limited population growth are expected to further restrain more high-end leasing.
But suburbs in Waukesha and Washington counties are poised to see stronger rent growth, according to the report.
“Milwaukee County recorded the fastest annual wage growth among Wisconsin counties in early 2025, and household income growth in 2026 is expected to rank among the nation’s strongest — signaling continued support for leasing momentum,” authors wrote.
The report spotlights Milwaukee Tool’s $42 million expansion in nearby Menomonee Falls, which is expected to create about 300 jobs, “potentially boosting investor interest locally.”
See more in the report.
