Difficulties in Obtaining Housing in Milwaukee

Although it is true that the real estate market in the state of Wisconsin has seen a significant recovery in recent times, the construction sector has not yet reached its best state as it was before the Great Recession, when it was stable and balanced.

These difficulties have significantly impacted the state’s economy; however, their effects have been felt more strongly in the city of Milwaukee, where the lack of construction has made it impossible for middle-low class families to find affordable housing.

Years ago, the constructions taking place within the city made it easier for residents to purchase their own homes, as the monthly mortgage payments were lower than if they had to rent a property. Currently, the few housing projects being developed in Milwaukee are constructions with prices that are almost impossible for a working family to afford.

According to representatives from the construction guild, these high housing prices arose because builders have also experienced increases in materials, labor, and other services needed to carry out a project. All these price increases were yielding very few returns on investment.

These price impacts and other problems in the construction sector have even affected the nonprofit organization Milwaukee Habitat for Humanity. According to its representative, in recent years they have experienced a significant increase in the prices of materials and labor.

In addition to the increases in material costs and labor for construction, single-family home developers also faced difficulties in obtaining financing and loans that would allow for the normal development of their projects.

But it is not only the builders with their problems in developing their projects that are causing the housing crisis in the city of Milwaukee; there are also the high mortgage interest rates that increasingly hinder residents looking to buy a property for the first time.

Due to the impossibility of residents purchasing these new constructions, the vast majority of these homes were acquired by investors, real estate groups, and individuals with substantial capital to rent them out.

Currently, according to collected information, more than 80% of the latest properties built in Milwaukee are occupied under rental contracts. This change also occurred due to the new trend in construction, which now focuses on creating small housing projects, while single-family or multi-family home constructions have taken a back seat.

According to current information, it is difficult for a balance to be achieved in the real estate market of Milwaukee unless official authorities create zoning strategies or increase population density that effectively address the city’s housing crisis.

Available Foreclosures:

Milwaukee: 1,200 foreclosures homes available

By Elías DaSilva | 19 de Noviembre de 2024