All Forum Posts by: Sonya Mays

On April 17, 2025, over 700 registered attendees descended on the state Capitol in Madison, WI for the Realtor & Government Day 2025 (RGD).

The key discussions focused on housing supply and affordability, and also touched on other topics such as the $525M WHEDA loan program, Koble landlord/tenant case, and real estate transfer tax.

Housing Inventory

The supply of housing remains at historic lows which directly impacts home prices, driving up the price of homes and making housing affordability less attainable for some homebuyers.

According to RGD speakers and materials, we need "200,000 new housing units" to support Wisconsin's "population and workforce".

In 2024, there was a 19% increase in construction permits, but we're still far behind and lack sufficient inventory to meet buyer demand. In February, the monthly supply of homes dropped from 2.9 to 2.8, according to the WRA (Wisconsin Realtors Association) housing report. 

In a balanced market, we should see between 4 to 6 months of housing inventory. We are well below these levels, making it a challenging market for homebuyers.

The legislation aimed to address housing inventory issues are under WI Senate Bill 180 (SB180).

Housing Affordability

According to RGD, "Wisconsin property taxes are the 8th highest in the nation", making housing affordability an issue.

Residents are spending "more than 50%" of their income on housing. The golden rule used to be no more than 30%-33% of income should be spent on housing, whether it's a mortgage or rent payment. Now, many Wisconsin residents are spending almost double that amount just to have a place to live.

In 2021, the median home price in Wisconsin was $215,000, it is now $310,000, which represents a 10% increase over the last year, and over 44% increase since 2021.

The lack of housing inventory, high mortgage rates, increased home prices and rising property taxes have negatively affected housing affordability.

How can we fix this? We need 200,000 new units to meet buyer demand.

The proposed legislation to address these matters are under WI Senate Bill 206/Assembly Bill 202 (SB206/AB202).

$525M WHEDA Loan Program

Last year, September 2024, WI Governor Evers announced the 4th and final component of the $525 Million Dollar WHEDA loan package.

The "More Like Home" loan program is a $50 Million dollar program to help repair and update older homes through grants or loans. Homeowners who live in homes that are more than 40 years old may qualify for low interest loans of $5,000 to $50,000.

Here's the breakdown of the original 2023-2025 program budget: 

• $50 million to support housing rehabilitation grants or loans
• $275 million for Residential Housing Infrastructure loans
• $100 million for Main Street Housing Rehabilitation loans
• $100 million for Commercial-to-Housing Conversion loans

Senate Bill 180 (SB180) successfully advocated for the $525 Million WHEDA loan program to invest in workforce and senior housing. It also allows commercial properties to be converted to apartment buildings under the Commercial-to-Housing loan program. To date, only $15M has been used. If the entire amount is not used by 2031, it all has to go back, according to RGD.

The current Spring 2025 application cycle is open and accepting applications until the deadline date of May 16, 2025. 

Real Estate Transfer Tax

Many years ago in the 1970s, the Wisconsin real estate transfer tax was "$1 for every $1,000 in property value", with 50% to the state and 50% to the county, according to RGD. In 1982, it increased to $3 per $1,000, with 80% to the state and 20% to the county. With increased home prices and property values, this causes additional tax burdens to homeowners and homesellers. Sellers are responsible for the transfer tax.

The proposed legislation would reduce the transfer tax by one-third, and allocate 50% to the county, 30% to the state, and 20% to the land information program supporting digital mapping infrastructure.

Proposed legislation to address this issue is under LRB2260 (Legislative Reference Bureau 2260).

Landlord/Tenant Koble Case

In the Koble v. Marquardt case, the Wisconsin Court of Appeals ruled in favor of a tenant, citing their lease was voided due to containing one or more of the "10 deadly sins" as refenced in Attorney Tristan Pettit's legal blog overview/explanation of the case. 

This case ruling set a precedent that landlords could be responsible to pay tenants "double all the rent paid under the lease", according to RGD. In essence, if a tenant lived in your property for 2 years paying $800 a month and decided to sue the landlord, a landlord could be responsible to pay them back $38,400 plus attorney fees and court costs. This could bankrupt many landlords and is not fair to property owners and landlords.

The proposed legislation to address this issue is under WI Senate Bill 206/Assembly Bill 202 (SB206/AB202).

WISCONSIN MARKET

According to the Wisconsin Realtors Association (WRA) Wisconsin Housing Stats, August 2023 report, there were less sales and higher prices compared to the same time last year.

The median sales price was $300,000, an increase of +10%, while home sales declined over -18%.

In January, the median price was $250,000, and in July rose to the current median price of $300,000.

Mortgage interest rates seemed to be "moving in the wrong direction", according to Michael Theo, President and CEO of the Wisconsin Realtors Association. He reported that the 30-year fixed rate went from 5.2% last year to 7.1% this year in August, which is presenting more challenges for some first-time buyers to purchase.

MILWAUKEE MARKET

In Milwaukee, there were 928 reported sales in the month of August, which is almost double from January when there were only 502 reported sales, according to WRA's report.

New listings increased by +7.9% in August, but closed sales were down -18.6%.

The median sales price in the 4-county metro area was $335,000.

Average days on market increased by +12.5% to 18 DOM.

Housing inventory saw a slight increase from 1.7 to 1.8 months of inventory in August, according to the Metro MLS Market Overview report, which covers Milwaukee, Ozaukee, Washington and Waukesha counties in Southeastern Wisconsin.

Luxury home sales, between $700k-$1M, saw the greatest increase in closed sales with +7.1% annual change.

On the other end of the spectrum, properties priced between the $100k-$200k range dropped -42.6% in closed sales, compared to last year.

COMMERCIAL MARKET

Commercial real estate continues to slow its pace in the midst of rising interest rates and tighter lending standards, according to the National Association of Realtors August 2023 Commercial Real Estate Market Insights report.

Office, multifamily and industrial vacancies have increased compared to the same time a year ago, and multifamily rental rates have increased.

The retail sector remained the strongest with the lowest reported vacancy rates year over year.

Multifamily vacancy rates rose 1.3%. Office vacancy rates increased 13.5%.

The retail vacancy rate has remained unchanged over the past year at 4.2%.

RENTAL MARKET

The 1bd and 2bd apartment rental prices have remained the same over the past 6 months, according to Rent.com.

The 3bd apartment rental prices have decreased by -$105 from July.

The most affordable neighborhoods in Milwaukee are Merrill Park and Sherman Park, where 1bd units are $645-$650 on average.

Some landlords have asked what are today's renters looking for in a rental property?

Many renters are looking for an up to date, modern, attractive and clean apartment. As with real estate, updated bathrooms and kitchens increase the value and attract good tenants.

The property should also have good curb appeal. Prospective renters will often drive by the property and check out the area to see if they like the surroundings and overall appeal of the house. It's important to keep things nice and tidy to attract good renters.

Other features that prospective renters consider are relative to the location of the property, such as, is it close to their job, close to schools, close to the freeway or on the bus line for public transportation, are there nearby amenities, grocery stores, restaurants, shopping centers, parks, etc.

These are some of the top items to keep on your checklist when marketing and promoting rental properties.

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If you're doing business in the state of Wisconsin then you should create an LLC entity for your rental properties located in the state of Wisconsin. You can also have a separate LLC in the state of AZ for properties managed/purchased in AZ. If you plan to purchase more rental properties in MKE/WI then it would be best to structure the deals with their own separate LLC entity as most of my out of state investors who purchase/buy/invest in MKE/WI prefer to do it this way. And make sure you have the relevant bank account statements/preapproval and operating agreement if applicable for submitting offers, as many seller entities may require additional documents for offer acceptance, purchase or re-fi. Hope this helps, best of luck with everything!

16 years in one house shows a lot of stability, some people move around every few years or every other year, sometimes people stay because they have kids in the school district and they don't want to disrupt the stability for their kids or family. At any rate, it seems like it was a good ride but as we know, all good things eventually come to an end and nothing lasts forever, enjoy it while you can and prepare for the next chapter to be your best chapter yet, onward and upward my friend!

I agree with @Corina Eufinger that Milwaukee is a "competitive market", it can also be a "block by block" situation in terms of value and pricing, you can go one block east or north of certain locations and find yourself in a totally different tax bracket and valuation. Do your homework and ask the local experts for insights and professional opinions. Always glad to render any information that would help make an informed decision.

@Kristian Clemens welcome to the BP family! And congrats on taking your first steps to real estate investing, whether baby steps or giant leaps, enjoy the ride and make it a great one. It sounds like your dad was a great inspiration, and now you will be a great inspiration to someone else many years from now, as you are well on your way to achieving your real estate investment goals. As @Brock Mogensen stated, it's best to connect with a local PM/Broker who knows the area and can help provide guidance and support for a successful navigation.  Try not to worry about everything or it can drive you crazy. I used to be a super crazy perfectionist wanting everything to be perfect before diving in, but over the years I've learned that sometimes you just have to dive in and trust a higher power. Keep up the great work and much continued success! 

First of all Mitchell, congratulations on your upcoming graduation, you are taking the first of many steps to achieve and pursue your dreams! 

I commend your efforts and desires to enter the fabulous world of real estate investing. 

As you know, real estate is all about location, location, location! If downtown city views or lake views are what you want, then you will be paying for those lovely views. Many times, investors don't start out being investors, they may start out being homeowners or homebuyers, and when they move to the next level or buy their next house, their old house becomes their new rental property. Or if their ambitious like you, they start very early with building a real estate investment portfolio. Either way, having a clear game plan strategy is crucial to help chart your path to financial freedom and exponential growth. 

As a real estate investor, I would lean towards the multi-family purchase as it allows for increased revenue stream and greater returns. But you have to do what's best for you based on your income and financial portfolio. Hope this helps. Best of luck to you in all of your future endeavors!