Milwaukee, WI is a city that has seen an increase in the short-term rental market in recent years. With a growing number of tourists visiting the city and a thriving local economy, it’s no surprise that more and more homeowners are looking to capitalize on this trend. In this blog post, we’ll take a closer look at the Airbnb rental market in Milwaukee, WI and what it means for homeowners and investors.
Milwaukee, WI Real Estate Market Overview
Before we dive into the short-term (Airbnb) rental market in Milwaukee, it’s important to have a general understanding of the local real estate market. According to Zillow, homes in Milwaukee have appreciated by 8.40% over the past year, with the median home value currently at $191,149. This is good news for homeowners, as it means that property values are increasing and there is potential for a high return on investment.
Airbnb Rental Market Overview
According to Chalet, there are currently 1,462 active short-term rentals in Milwaukee, WI. The average daily rate for these rentals is $191.20, and the occupancy rate is 51%. This means that there is a high demand for short-term rentals in Milwaukee, and homeowners can potentially earn a significant amount of money by renting out their homes on a short-term (Airbnb) basis.
The annual revenue for Airbnb rentals in Milwaukee is $29,200 which is a promising figure for homeowners looking to make some extra income.
Average Gross Yield and Property Taxes
The average gross yield for short-term rentals in Milwaukee, WI is 15.28%. This is a strong figure that indicates that homeowners can potentially earn a significant return on investment by renting out their homes on a Airbnb basis. Additionally, the average property tax rate in Milwaukee is 2.53%, according to SmartAsset. While this may seem high, it’s important to keep in mind that short-term rental income can help offset these costs.
Short-Term (Airbnb)Rental Regulation
One factor that homeowners and investors should consider when looking at the short-term rental market in Milwaukee is the local regulations. Fortunately, Milwaukee has relatively investor-friendly regulations when it comes to Airbnb rentals. Homeowners can apply for a license to rent out their homes on a short-term basis, and there are no restrictions on the number of licenses that can be issued. This means that there is a lot of potential for growth in the short-term rental market in Milwaukee.
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Demographics and Climate
Milwaukee is home to over 590,000 people, making it the largest city in Wisconsin and the fifth-largest in the Midwest. The median household income in Milwaukee, WI is $47,006, which is lower than the national median but consistent with other Midwestern cities.
Milwaukee has a humid continental climate, with warm summers and cold winters. The city experiences an average of 34 inches of snowfall per year, making it a great destination for winter sports enthusiasts.
Sports Teams and Colleges
Milwaukee is home to several professional sports teams, including the Milwaukee Brewers (MLB) and Milwaukee Bucks (NBA). The Brewers play at American Family Field, which is located just outside of downtown Milwaukee, while the Bucks play at Fiserv Forum in the heart of the city.
Milwaukee is also home to several colleges and universities, including Marquette University, the University of Wisconsin-Milwaukee, and Milwaukee Area Technical College.
Crime Rate
Like many urban areas, Milwaukee has a higher crime rate than some smaller cities and rural areas. However, the city has made significant strides in reducing crime in recent years. According to NeighborhoodScout, the overall crime rate in Milwaukee is 51 per 1,000 residents, which is higher than the national average but lower than other Midwestern cities like Detroit and St. Louis.
Tourism and Attractions
Milwaukee is a popular destination for tourists, with over 2.5 million visitors in 2021. The majority of visitors come from nearby states like Illinois and Minnesota, but the city also attracts visitors from across the country and around the world.
Some of the biggest tourist attractions in Milwaukee include the Milwaukee Art Museum, the Harley-Davidson Museum, and the Milwaukee Public Market. The city is also home to several festivals throughout the year, including Summerfest (the largest music festival in the world) and the Wisconsin State Fair.
Peak Season
The peak season in Milwaukee is generally from June through August, when the weather is warm and sunny and many of the city’s festivals and events are taking place. However, the city has something to offer visitors year-round, with winter sports and holiday events in the colder months and springtime festivals and outdoor activities in the spring.
Conclusion
Overall, the Airbnb rental market in Milwaukee, WI is looking strong. With a high demand for short-term rentals and a growing number of homeowners getting into the market, there is a lot of potential for growth and profit. The average gross yield is strong, and the local regulations are investor-friendly. For homeowners looking to make some extra income or investors looking to get into the market, Milwaukee is definitely a city worth considering.
