As a widespread cooling trend takes hold across the United States property market, one Midwestern city is stubbornly bucking the national downturn. New data reveals that Milwaukee, Wisconsin, has emerged as a significant outlier, with home prices continuing to climb against the grain.
A Market Defying National Trends
According to the latest figures from Realtor.com, the cost of housing in Milwaukee increased by 5.7 percent per square foot over the past year. This growth occurred even as the supply of available homes remained constrained, with inventory in the metropolitan area rising by just 5.1 percent year-over-year. This slow pace of new listings is far below the national average, helping to maintain fierce competition and keep prices elevated.
Jake Krimmel, a senior economist at Realtor.com, stated that 'Milwaukee defied these national trends, remaining hot throughout the year.' He highlighted that Milwaukee and other areas in Wisconsin have stayed among the nation's most active markets in 2025, characterised by limited supply and resilient demand.
The National Picture: A Shift Towards Buyers
Milwaukee's robust performance stands in stark contrast to the broader American landscape. Nationally, the median list price fell to $400,000 in December, marking a 0.6 percent decrease from the previous year. This decline coincided with the 26th consecutive month of rising inventory, indicating a market moving in a more buyer-friendly direction.
'Generally speaking, the story of 2025 was a slowing market moving in a more buyer-friendly direction, with homes lingering longer and prices flat to down,' Krimmel explained. The slowdown is now extensive, with over half of the country's 50 largest metro areas recording annual price drops.
Why Milwaukee Stands Apart
Local experts point to a powerful combination of affordability and quality of life that continues to attract buyers. Justin Hoffmann, a Milwaukee real estate agent, noted that compared to larger neighbouring hubs like Chicago or Minneapolis, buyers get more for their money. 'Buyers are able to afford more square footage and stretch their budget further, which is especially attractive to first-time buyers, young families, and professionals,' he said.
Krimmel added that Milwaukee has benefited from buyers being pushed 'down-market' by high mortgage rates, driving demand toward more affordable cities that still offer strong job prospects and urban amenities. Hoffmann emphasised the city's appeal, offering 'the energy and amenities of a major city without the congestion, stress, and long commutes,' alongside a diverse economy.
Broker Jeff Niedfeldt of Nied Luxury & Lakefront Homes attributed the market's strength to Wisconsin's balanced nature. 'We don't get swept up in the fear or excitement as much as other areas. We have steady business investment and a consistent renter base that is looking for the stability of home ownership. In short we have more balance,' he told the Daily Mail.
Outliers and the Broader Slowdown
Realtor.com economists have officially categorised Milwaukee as a national 'outlier' market, where local conditions overpower wider regional or national trends. It is not alone; Grand Rapids, Michigan, leads the country with prices up 5.9 percent to a median of $397,000. Meanwhile, cities like Oklahoma City have closely followed the national cooling pattern.
The national deceleration is forcing significant adjustments. Major homebuilder Lennar, the country's second-largest, has slashed prices by 10 percent in response to dried-up buyer demand. Analysts warn this could foreshadow broader price declines across existing housing stock as we head into 2026, as builders are often forced to sell at a discount unlike homeowners who can wait.
