Milwaukee ranked toward the bottom in Zillow’s newly released predictions for the 50 hottest real estate markets for 2025.
The annual analysis determines which cities have the highest homebuying demand and therefore more competitive markets for potential homebuyers.
To create the ranking, Zillow looked at data points for all of the 50 largest metro areas in the county, including the number of listing days for homes, potential growth in home value and projected changes in the local labor market. Milwaukee placed 42nd, just behind New York City.
Here’s what landed Milwaukee in the bottom 20% and which cities placed better and worse.
A home for sale is shown in Germantown, Wisconsin. Mark Hoffman/Milwaukee Journal Sentinel
Is demand for new homes dropping in Milwaukee?
Rising home prices amid decreasing demand appear to be why Milwaukee placed toward the bottom of the list.
In 2024, the typical price of a home in Milwaukee was $343,920, according to Zillow’s home value index, which looks at homes in the 35th to 65th percentile of a market.
Milwaukee home prices are forecasted to rise an additional 2.4% in 2025, Zillow reported. Meanwhile, the number of jobs per new homes in Milwaukee is -1.6 — meaning that while new homes are being built, the number of jobs in the area is dropping, so demand to buy new homes will likely be low.
However, one factor that keep homebuying demand up is the overall decrease in new home listings citywide. According to Zillow, the number of home listings in Milwaukee has dropped more than 27% since 2018-19.
More: 2024 was another slow year for housing sales. But some Milwaukee-area communities enjoyed surges
Which cities also have low homebuying demand?
Though Milwaukee ranked in the bottom 10, its ranking did improve two spots from last year. Here are the cities that placed below Milwaukee this year, from 43rd to 50th place:
More: 2024 was another slow year for housing sales. But some Milwaukee-area communities enjoyed surges
10 hottest housing markets for 2025
Here are the 10 hottest real estate markets for 2025, according to Zillow’s predictions:
This article originally appeared on Milwaukee Journal Sentinel: What’s in store for Milwaukee’s housing market in 2025?
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