Multifamily vacancy in the Milwaukee metro area is outperforming the rest of the country. The 5.70 percent rate is 30 basis points below the national average of six percent, a fourth-quarter market report from Colliers shows.
The low vacancy rate can be attributed to Milwaukee's resilient labor market, with the adjusted jobless rate in the area dropping to 3.1 percent and total non-farm employment at 857,400, according to Colliers.
"The low vacancy rate in Greater Milwaukee is reinforced by the area's economic base, led by the Education & Health Services sector, followed by the Trade, Transportation and Utilities sectors, the CRE brokerage explained in its report.
That comes even as the occupancy rate dropped by 20 basis points year-over-year to 93.90 percent in the fourth quarter.
Still, the fundamentals for the most part are performing well in the market. Net absorption improved by 23 units year-over-year in the fourth quarter to reach 386, while rents climbed by $33 per unit to $1,546.
Also, the supply trends are favorable, with deliveries plunging by 292 units to 519. That trend, along with steady rent growth and stable interest rates, is driving investment activity and leading to more 1031 exchange activity, according to Colliers. Without revealing specific figures, Colliers noted that transaction volume last year outpaced 2025 levels, with the momentum expected to continue into this year.
"Looking ahead to 2026, the Colliers Wisconsin Capital Markets team expects sales activity to continue rising, supported by consistent rent fundamentals, more competitive lending terms, and a growing wave of loan maturities expected to bring additional assets to market," it said.
The top Milwaukee notable multifamily sale that the report listed for 2025 was Harbor Pointe Apartments, which traded hands for $44.70 million. Coming in at second and third place were The Villas at Foxwood and Lofts at Layton, selling for $38.30 million and $19.80 million, respectively.
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