How does the Wisconsin housing market rank in the U.S.?

In Wisconsin, a shortage of supply is driving up home prices.

Wisconsin housing prices have skyrocketed in the past decade as supply hasn’t kept up with the pace of growing demand. Between 2012 and 2023, the Wisconsin median home sale price jumped by more than 150%, according to a report from the University of Wisconsin-Extension.

Wisconsin’s housing market has remained strong compared to neighboring states. In 2012, only Iowa had a lower median home sale price than Wisconsin, but in 2023, only Minnesota had a median sales price that was higher than Wisconsin, according to the report.

And in Madison, housing prices are increasing at the rate of markets in the top quarter of the nation. Looking at buying or selling your home? Here’s how housing market stacks up against the markets across the U.S.

What’s the housing market in Milwaukee?

The study ranked 532 cities with a population of 65,000 or more. Data comes from Zillow Home Value Index, which calculates the average home value within the 35th and 65th percentile.

Milwaukee: Average home price: $196,080. Change in price from May 2022-May 2023: 2.88%

Real Example: A one story ranch at 8523 W. Glendale Ave. in Milwaukee is listed for $190,800

This one story ranch located at 8523 West Glendale Avenue in Milwaukee is on the market for $190,800.

Notable cheaper markets: Little Rock at $195,058, Cedar Rapids at $190,094, and Topeka, at $179,943.

Notable more expensive markets: Philadelphia at $221,987, Cincinnati at $236,147 and Duluth at $257,456.

Why are home prices increasing in Wisconsin?

Many Wisconsin homeowners who purchased their home with relatively low mortgage interest rates are hesitant to sell their home and purchase a new property with higher interest rates, said Steven Deller, professor of agricultural and applied economics at UW-Madison.

“Families that are thinking they’ve outgrown their home and it’d be nice to go into a bigger spot. Why would they give up a 3% mortgage rate to get a bigger house?” said Deller.

Any new housing built also tends to be more expensive because developers can make higher profits building larger homes. Increasing costs of materials and labor are also pressuring developers to steer away from building affordable listings, said Deller.

Gov. Tony Evers signed a bipartisan package of bills in June 2022 to try to increase access to affordable housing. The bills aim to provide loan fund programs to cover different infrastructure costs. Deller said those bills could provide some relief, but won’t make substantial changes to the market.

The most expensive housing markets in 2023

The top ten most expensive housing markets were all in California. Here’s the top three:

  1. Palo Alto (Average price: $3.16 million)
  2. Newport Beach (Average price: $2.95 million)
  3. Sunnyvale (Average price: $1.83 million)

The least expensive housing markets in 2023

  • Flint, Michigan ($47,498)
  • Detroit, Michigan ($64,414)
  • Jackson, Mississippi ($67,254)

What are the fastest growing housing markets in the U.S.?

  • Hartford, Connecticut (20%)
  • Lauderhill, Florida (15.7%)
  • Fayetteville, North Carolina (14%)

What are the fastest declining housing markets in the U.S.?

  • Dublin, CA (-15.3%)
  • San Francisco, CA (-13.3%)
  • Palo Alto (-12.8%)

RELATED:Milwaukee has some of the fastest growing rents in the country, study says

RELATED:Take a look at the 5 most expensive homes for sale in Milwaukee County in July 2023

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