No question, investor interest in the Greater Milwaukee multifamily space is high. That's highlighted by a report from Colliers, showing that transaction volume in the market skyrocketed by 455.25 percent in the second quarter year-over-year to $161.3 million. However, the gains may only signal a strong recovery from last year's lows.
"This significant percentage gain may be somewhat inflated due to the low transaction volume recorded during Q2 2024," Colliers explained.
"Notably, a large portion of this quarter’s activity consisted of off-market deals."
Still, a 5.5-fold increase isn't a small number — and reflects strong investor appetite now.
There are a couple of factors driving the activity, according to Colliers. One is the 6.4 percent vacancy rate, which the CRE firm refers to "below average." Plus, asking rents per unit are up by $28 over the past year to $1,542. Also, the latter is well above the $1,434 five-year average.
Demand remains strong as well. Absorption was +816 units in the second quarter, up by 169 units from 12 months ago and well above the 547-unit five-year average.
Additionally, multifamily supply coming online is slowing in Greater Milwaukee. Completions are down 32 units from the 12 months prior to 721.
"Multifamily development in the Milwaukee MSA has entered a more stable phase," Colliers said.
"Interest rates remain unchanged, and construction costs continue to be elevated. As a result, many new multifamily projects across the Milwaukee MSA have required municipal funding to move forward."
In Greater Milwaukee, 61 percent choose to own their homes rather than rent. Some other key underlying second quarter figures for the area include 0.42 percent population growth, 0.10 percent job growth and the median household income was $77,006.
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