Healthy fundamentals should power the Milwaukee-area multifamily sector to a solid year in 2026, according to the latest research from Marcus & Millichap.
In its 2026 Multifamily Investment Forecast, Marcus & Millichap said that elevated home prices and rising mortgage costs in the Milwaukee area will continue to expand the renter pool here. That should sustain demand for Class-B and -C apartments in Milwaukee and its suburbs, according to the report.
But the local apartment market does face challenges in 2026, too. Marcus & Millichap pointed to uneven demand for Class-A apartment units, a trend that is leading to slower annual rent growth and an increase in concessions in the Milwaukee’s CBD and its Brown Deer-Whitefish submarkets.
Another challenge? Unemployment. The Milwaukee area faces a projected loss of 8,000 jobs in 2026, the third-largest job-loss projection among major U.S. metropolitan areas this year. Employment woes could hurt demand in the local apartment market.
Despite limited projected job growth, Marcus & Millichap says that the Milwaukee area’s multifamily vacancy rate is expected to decline 10 basis points to 3.6% in 2026. That is thanks largely to a low number of new multifamily completions scheduled to go online this year and steady net absorption rates.
“Milwaukee’s multifamily fundamentals are showing resilience as Class-A assets remain in demand, and income growth signals continued leasing momentum,” said Todd Lindblom, senior managing director and market leader for Marcus & Millichap, in a statement.
The report predicts that rent growth will continue in the Milwaukee market, with the average effective rent forecasted to rise by 0.5% to $1,692 a month this year. That would reverse a year-over-year decline in average rents in 2025.
Don’t expect a big influx of new apartment units in the Milwaukee market anytime soon, though. Marcus & Millichap said that multifamily construction activity is expected to fall to its lowest annual volume since 2013, with completions predicted to drop by nearly 3,000 units compared to 2025. Marcus & Millichap predicted an 85% drop in completions in the CBD this year.
“Although employment losses and affordability remain hurdles, the metro’s improving wage growth, easing construction pipeline and strong investor interest point to stable market fundamentals heading into 2026,” Lindblom said.
