Real Estate Trends to Watch in Wisconsin for 2024

The real estate market is constantly evolving, and Wisconsin is no exception. As we look ahead to 2024, there are several key trends that buyers, sellers, and investors should keep an eye on. From shifting buyer preferences to changing economic conditions, understanding these trends will help you make more informed real estate decisions. Here are the top real estate trends to watch in Wisconsin for 2024.

1. Rising Demand for Suburban and Rural Properties

The pandemic spurred a significant shift in housing preferences, with many buyers seeking more space and distancing from urban centers. This trend is expected to continue into 2024, with more buyers showing interest in suburban and rural properties throughout Wisconsin.

Why It Matters:

• Increased Value for Suburban Properties: Communities near larger cities like Milwaukee and Madison will likely see increased demand, leading to rising home prices.
• More Interest in Rural Areas: Buyers seeking quiet, open spaces may continue to drive interest in rural properties, particularly in areas like Door County, the Northwoods, and the Driftless Area. This offers opportunities for investors and sellers in less densely populated areas.

Tip for Buyers: Act quickly if you’re eyeing a suburban or rural property, as demand is expected to remain high.

2. Remote Work Impact on Housing Choices

Remote work is no longer a temporary solution for many, and its influence on housing decisions is here to stay. With the flexibility to work from anywhere, homebuyers in Wisconsin are prioritizing homes with dedicated office spaces, larger layouts, and locations that offer a better work-life balance.

Why It Matters:

• Flexibility to Relocate: Buyers no longer tied to specific locations for work are expanding their home search to include more affordable or desirable areas. Expect continued growth in demand for homes with home offices, finished basements, and bonus rooms.
• Second Homes and Vacation Properties: Wisconsin’s lakes and recreational areas will likely continue attracting remote workers looking for secondary or seasonal homes. Properties near lakes like Geneva, Mendota, and Superior are becoming more attractive to those looking to blend work with vacation.

Tip for Sellers: Highlight home office space and high-speed internet availability in your listing to attract remote workers.

3. Affordability Challenges and Rising Interest Rates

Nationwide, housing affordability remains a pressing concern, and Wisconsin is not immune. Rising interest rates, coupled with limited housing inventory, are expected to continue challenging buyers throughout 2024. These factors will likely influence where and what buyers can afford, driving demand for smaller homes, fixer-uppers, or homes in more affordable markets.

Why It Matters:

• Mortgage Rates: Mortgage rates are expected to stay higher than in previous years, which may lead to reduced purchasing power for buyers. Buyers may have to adjust their budgets or look in less expensive markets to secure a home.
• Home Prices Stabilizing: While home prices may not drop significantly, the rate of price appreciation is likely to stabilize, which could provide a slight relief to buyers who have been priced out in the past.

Tip for Buyers: Lock in mortgage rates early if possible, and explore options like adjustable-rate mortgages (ARMs) if long-term rates are prohibitive.

4. Sustainability and Energy Efficiency in Demand

Environmental awareness and rising energy costs are pushing more buyers to prioritize sustainability and energy efficiency when shopping for homes. Wisconsin’s cold winters make energy-efficient homes especially attractive to buyers looking to save on heating costs and reduce their environmental footprint.

Why It Matters:

• Green Home Features: Buyers are increasingly seeking homes with features like energy-efficient windows, solar panels, smart thermostats, and upgraded insulation. Homes that offer these amenities are likely to command a premium on the market.
• Government Incentives: Expect to see more incentives from state and federal programs for eco-friendly upgrades, such as tax credits or rebates for installing solar panels or energy-efficient systems.

Tip for Sellers: If you’re considering renovations, prioritize energy-efficient upgrades that can increase your home’s value and appeal.

5. Increased Popularity of Multi-Generational Homes

Multi-generational living is on the rise across the country, and this trend is expected to grow in Wisconsin as well. Families are seeking larger homes that can accommodate grandparents, adult children, or other relatives. This shift is driven by both cultural factors and the rising costs of separate housing or senior care.

Why It Matters:

• Larger Homes in Demand: Homes with extra bedrooms, in-law suites, or finished basements that can accommodate multiple generations are becoming more desirable. Expect to see continued interest in homes with flexible living spaces.
• Potential for Dual Housing Solutions: Homeowners who can’t find the right multi-generational home may opt for properties with potential for expansions or those with separate dwellings like guest houses.

Tip for Buyers: If you’re seeking multi-generational housing, act quickly—competition for these types of properties is expected to be high.

6. Technology in Real Estate Transactions

The real estate industry continues to embrace technology, and 2024 will bring more advancements that streamline the home buying and selling process. Virtual tours, online transactions, and AI-driven home searches are making real estate more accessible and efficient for both buyers and sellers.

Why It Matters:

• Virtual Home Shopping: Virtual tours and 3D walkthroughs have become standard tools for many buyers, especially for those relocating from out of state. This trend is expected to continue, providing buyers with a more immersive experience while shopping remotely.
• Online Transactions: Digital tools that enable secure online closings, document signing, and mortgage approvals are becoming more widespread, reducing the need for in-person meetings and making the transaction process faster and more convenient.

Tip for Sellers: Make use of professional virtual tours and high-quality digital marketing to attract buyers who are shopping online.

7. Growing Rental Market

As housing prices continue to rise, some buyers are being priced out of the market and turning to rental properties instead. This shift is creating a stronger rental market, particularly in Wisconsin’s larger cities like Madison and Milwaukee. Investors are likely to continue capitalizing on this trend by purchasing rental properties to meet the growing demand.

Why It Matters:

• Increased Demand for Rental Units: With many prospective buyers opting to rent instead of buy, rental properties will likely see high occupancy rates and rising rents in 2024.
• Opportunity for Investors: Investors in Wisconsin’s real estate market may find lucrative opportunities in multi-family units or single-family rental homes. These properties offer a steady income stream in areas with high rental demand.

Tip for Investors: Consider expanding your portfolio by investing in rental properties, especially in cities or areas with high rental demand.

8. The Rise of Short-Term Rentals

With Wisconsin’s abundance of natural beauty and recreational destinations, the demand for short-term rentals, such as Airbnb and Vrbo properties, is expected to grow. Popular vacation spots, including the Northwoods, Door County, and Lake Geneva, are drawing more visitors seeking alternatives to traditional hotels.

Why It Matters:

• Short-Term Rental Potential: Property owners in popular tourist destinations can capitalize on the short-term rental trend, earning income from vacation rentals. However, it’s essential to check local regulations, as some municipalities are tightening restrictions on short-term rentals.
• Dual Use for Buyers: Many homebuyers are now looking for properties that can serve as both a vacation home and an income-generating rental during off-seasons.

Tip for Buyers: If you’re considering a vacation property, evaluate its potential as a short-term rental to offset costs.

Conclusion

The real estate market in Wisconsin for 2024 will be shaped by shifting buyer preferences, economic factors, and technological advancements. Whether you’re buying, selling, or investing, staying informed about these key trends can help you make smart real estate decisions. From the rising demand for suburban homes to the continued influence of remote work, these trends offer both opportunities and challenges.

For expert guidance in navigating the Wisconsin real estate market, reach out to Resilient Realty LLC. Our experienced team is here to help you succeed in any market conditions.