Southeastern Wisconsin's New Home Construction Market
Due to a decrease in available rehab properties, Southeastern Wisconsin's new home construction market is experiencing notable growth this year. Demand for housing is still on the rise, so smart investors and developers are on the hunt for desirable vacant lots where they can construct new homes.
Market Dynamics and Housing Demand
In response to housing shortages, Milwaukee is promoting affordable new construction through initiatives like offering $1,000 city-owned lots in subdivisions such as Walnut Circle and Josey Heights. Additionally, the rise of built-to-rent housing is extending north toward Milwaukee, providing alternatives for those unable or unwilling to purchase homes. Check out the City of MilwaukeeAxios for more information.
Despite the increase in construction, the market remains competitive. As of May 2023, home sales in Wisconsin declined by 21.5% compared to May 2022, while median prices rose by 6.9% to $294,000, indicating persistent demand amid limited supply. The housing market is expected to experience steady, moderate growth through the end of 2025, with home prices rising at a manageable pace.
Surge in Building Permits
According to Spectrum News 1 and the Wisconsin Builders Association, recent data indicates a significant uptick in construction activity. Between July and September 2024, new building permits in Wisconsin rose by 12.8% compared to the same period in 2023, reflecting a statewide push to address housing demand. In the first quarter of 2024, single-family home construction permits increased by 36% year-over-year, with urban areas like Milwaukee County leading in new starts.
Conclusion
Southeastern Wisconsin's new home construction market is on an upward trajectory, with increased building activity aiming to meet housing demand. While challenges like affordability and supply persist, initiatives to promote new construction and alternative housing options are steps toward addressing these issues.
If you're a builder, investor, or developer ready to take advantage of this market momentum, MGM Private Capital is here to help.
Call us today to explore flexible funding options for your new construction project.
Debra T. Hayes
Founder, Principal & Legal Counsel
(262) 613-1627
Debra@MGMPrivateCapital.com