2026 Housing Market Outlook for Southeast Wisconsin
February 12, 2026
As we move into 2026, the Southeast Wisconsin housing market continues to evolve. Whether you're thinking about buying your first home in Milwaukee, selling a property in Kenosha, or investing in Racine County real estate, understanding what's ahead can help you make smarter decisions. Here's what the Market Realty Group team sees shaping our local market this year.
Interest Rates Are Stabilizing
After years of volatility, mortgage rates have begun to settle into a more predictable range. Most forecasters expect 30-year fixed rates to hover in the low-to-mid 6% range through much of 2026. While that's higher than the historic lows of 2020–2021, it's a far cry from the peaks we saw in late 2023. For buyers in Southeast Wisconsin, this stability means you can plan with more confidence and lock in a rate without the anxiety of dramatic swings.
Inventory Is Slowly Improving
One of the biggest challenges in recent years has been a shortage of homes for sale. The good news? Inventory levels across the Milwaukee metro area, Racine, and Kenosha counties are gradually ticking upward. New construction in communities like Caledonia, Mount Pleasant, and Franklin is adding much-needed supply, and more homeowners who were "locked in" by low rates are beginning to list their properties. That said, demand remains strong — especially for move-in-ready homes in desirable school districts — so don't expect a buyer's market just yet.
Home Prices: Steady Growth, Not a Bubble
Southeast Wisconsin has consistently offered more affordable housing compared to coastal markets, and that trend continues. Median home prices across the region are expected to see modest appreciation of 3–5% in 2026. Milwaukee's diverse neighborhoods, from Bay View to Wauwatosa, continue to attract buyers looking for value. Meanwhile, Kenosha and Racine counties remain popular with families and remote workers seeking more space without sacrificing access to Chicago or Milwaukee.
What This Means for Sellers
If you've been considering selling, 2026 presents a solid window. Homes that are well-maintained, competitively priced, and professionally marketed are still generating multiple offers in many SE Wisconsin communities. The key is pricing it right from the start — overpricing in a stabilizing market can lead to longer days on market and ultimately a lower sale price.
What This Means for Buyers
Buyers should feel cautiously optimistic. More inventory and stable rates give you room to be selective, but waiting for a "perfect" market could mean missing out on today's opportunities. Getting pre-approved, working with a knowledgeable local agent, and being prepared to move quickly on the right home are still the winning strategies.
The Bottom Line
The 2026 SE Wisconsin housing market is shaping up to be more balanced than what we've seen in recent years — and that's good news for everyone. Whether you're buying or selling, the team at Market Realty Group is here to help you navigate the market with confidence. Reach out to us to discuss your goals and get a personalized market analysis for your area.