Southern Wisconsin Multifamily Market Report Q4 2025

Market Overview | Kenosha, Racine, Milwaukee, Washington, and Waukesha Counties

Across Southern Wisconsin, multifamily fundamentals remained balanced in Q4 2025 despite elevated construction activity. The region records 3,562 units currently under construction, while 1,057 units were delivered during the year. Net absorption of 443 units lagged deliveries, contributing to modest softening; however, the overall vacancy rate remained relatively healthy at 5.2%. Rent growth moderated but stayed positive, with annual rents increasing 2.0%, bringing the average asking rent to $1,393 per unit. Student-driven submarkets have continued to help stabilize occupancy, particularly in urban and near-campus locations, offsetting broader supply pressures across Southern Wisconsin.

By the Numbers

Source: CoStar Group, Inc.

Units Under Construction: 3,562
Units Delivered: 1,057
Units Absorbed: 443
Vacancy Rate: 5.2%
Annual Rent Growth: 2.0%
Average Market Asking Rent Per Unit: $1,393

Southern Wisconsin Multifamily Vacancy by County

Source: CoStar Group, Inc.

Units Delivered by County

Source: CoStar Group, Inc.

Units Under Construction by County

Source: CoStar Group, Inc.

Sales

Multifamily sales activity in Southern Wisconsin was muted in Q4 2025, though the quarter reflected a modest re-engagement of capital relative to earlier periods. Total transaction volume reached approximately $110 million in Q4 2025, with pricing averaging $142,800 per unit, continuing the gradual recovery from the subdued activity observed through much of 2024. Cap rates expanded to 8.2%, underscoring the continued reset in pricing expectations amid higher interest rates and cautious buyer sentiment. Notably, the $19.6 million sale of the 232-unit Parkview Apartments in Milwaukee accounted for a meaningful share of quarterly volume, highlighting that while overall liquidity remains constrained, well-located assets continue to attract investor interest. Over the past five years, sales volume has remained volatile, while pricing trends have shown relative resilience, reinforcing the market’s long-term stability despite near-term transactional headwinds.

Sales Statistics

Source: CoStar Group, Inc.

Sales Volume: $110M
Average Price Per Unit: $142.8K
Cap Rate: 8.2%

Rent Per Unit by County

Source: CoStar Group, Inc.

Southern Wisconsin Q4 2025 Student Housing

Southern Wisconsin continues to benefit from a sizable and stable student population, supported by four major universities: Marquette University, University of Wisconsin, Milwaukee, University of Wisconsin, Parkside, and Carroll University. Collectively, these institutions account for approximately 32,800 full-time students, creating a consistent demand base for housing across Milwaukee, Waukesha, and Kenosha Counties.

Marquette University and UW–Milwaukee anchor student demand in Milwaukee County, together enrolling more than 26,900 full-time students. Both institutions operate with limited on-campus housing capacity relative to enrollment, with Marquette offering approximately 5,300 dormitory beds and UW–Milwaukee roughly 4,100 beds, leaving a substantial portion of students reliant on the private rental market. High retention and graduation rates at Marquette, combined with strong out-of-state enrollment, further support steady, multi-year housing demand near campus. UW–Parkside and Carroll University provide additional student-driven demand in Kenosha and Waukesha Counties, respectively, where constrained dormitory capacity similarly pushes students toward off-campus options.

Average asking rents reached $814 per bed, reflecting 2.4% annual rent growth amid minimal new supply pressure. Only two beds were delivered over the past 12 months, and with no beds currently under construction, the sector remains fundamentally undersupplied, positioning student housing as one of the tightest segments within the Southern Wisconsin multifamily market.

Key Findings

Student demand remains a key driver of housing need, with approximately 32,800 full-time students across four major universities creating consistent rental demand in Milwaukee, Waukesha, and Kenosha Counties.
On-campus housing remains limited relative to enrollment, particularly at Marquette University and UW–Milwaukee, pushing a significant share of students into the private rental market and supporting sustained near-campus occupancy.
Student housing fundamentals are exceptionally tight, with 100% occupancy, $814 average asking rent per bed, 2.4% annual rent growth, and virtually no new supply delivered or under construction.