Milwaukee Multifamily Market Report

Both supply and demand are cooling down. Milwaukee entered 2024 as one of just three major markets in the U.S. with a vacancy rate of 4 percent or lower; however, local momentum is easing. Net absorption from January through March 2024 fell under 50 units, the softest first quarter for apartment demand since 2014. That slowdown produced a modest 20-basis-point quarterly vacancy increase, with upward pressure partially counterbalanced by a reduction in new supply. Fewer than 400 units opened from January through March 2024, which is roughly two-thirds of the first quarter average spanning the past five years. This dynamic foreshadows expectations for the remainder of 2024. Net absorption will dip to the third-lowest annual total in a decade, but completions also slide below the trailing 10-year average. The resulting vacancy uptick to 4.5 percent keeps Milwaukee as the third-tightest major U.S. market, supporting a rent growth pace that doubles the national average.