The new year begins with a wealth of real estate listings—and while the median home price has dropped, housing costs are rising rapidly in one Midwestern metro city.
In December, listings rose for the 26th consecutive month, but active listings fell at certain times of the month, according to the Realtor.com® December 2025 Monthly Housing Trends report.
“Nationally, the housing market in 2025 was defined by the growth of assets (monthly average of +22.9% year-on-year) and low prices,” he explained. Jake Krimmelchief economist at Realtor.com.
“And in general, the story of 2025 was a slow market moving in a more consumer-friendly direction, housing that is lasting longer and lower prices coming down.”
Consumer activity has cooled and prices have been lowered, with pending sales down. In addition, homes are taking four days to sell than the same time last year.
Overall, new listings are also cool, year-over-year and month-over-month. But, inventory recovery was strongest in the South and West, while the Midwest and Northeast lagged behind pre-pandemic supply levels.
The national median list price registered at $400,000 in December—that’s down 0.6% from the same time last year and 3.6% from the previous month.
But home prices in this Midwest metro are rising more quickly: Milwaukee stands out as an outlier—meaning property growth has been more muted than the national pace, while price gains per square foot have remained above the US average year-round.
Justin Hoffmannlongtime Milwaukee resident, tells Realtor.com that the city offers the perfect balance.
“You get the energy and services of a big city without the congestion, stress, and long journeys that often come with one. I can cross the city quickly, and the airport is close and easy to travel, which makes traveling easy and stress-free,” he said.
Hoffman channels his passion for Milwaukee into his work as a real estate agent with Team Hoffmann Re/Max Lakeside—guiding clients looking to buy and sell in and around the city.
“Economically, Milwaukee continues to grow in all major industries including finance, manufacturing, technology, and health care, while being accessible to remote or hybrid workers looking for value without losing a job opportunity,” Hoffmann said. “In addition, the city’s neighborhoods offer something for every type of buyer, from walkable urban areas to quiet, family-friendly communities and historic districts.”
Krimmel notes that “Milwaukee bucked these national trends, which remain hot throughout the year. Inventory there grew just 5.1% year-over-year on average while listing prices per square foot were up 5.7%. Milwaukee and other Wisconsin geos remain one of the hottest markets in 2025, with limited supply and strong demand.”
Regional differences
Realtor.com economists looked at the differences between housing markets in various states. The report reveals that the national average hides two very different stories.
Northeast and Midwest: strong market. South and West: slow, soft market.
Year-over-year inventory growth peaked at 30% to 40% in the South and West during the first half of the year before cooling off. Meanwhile, inventory gains in the Northeast and Midwest remained in the low double digits.
Economists also say that price volatility is uneven. On a price-per-square-foot basis, the Northeast saw steady gains of 3% to 4% by 2025, but prices in the South were lower to worse on average, while the West experienced a mid-year decline.
The report identified “benchmarkets”—metros with month-to-month inventory and price movements most similar to their regional averages. Compare them to “outside” markets—where local power dominates and regional averages are less important.
In benchmarking, understanding local conditions is the same as understanding regional trends. On the other hand, foreign markets show many of the idiosyncratic dynamics Realtor.com economists have highlighted throughout the year.
Milwaukee stands out as a national outlier—highlighting how different this metro can look from other “typical” US markets that share similarities.
“Compared to larger metros like Chicago or Minneapolis, buyers can afford more square footage and stretch their budgets, which is more attractive to first-time buyers, small families and professionals,” Hoffmann added.
Krimmel points out that “high interest rates have caused many buyers to move to the ‘down market’ whether it’s to more affordable housing or less expensive metros that still have a lot to offer in terms of access to jobs, culture, etc. It goes along with the fact that Milwaukee (like much of the Midwest) isn’t building a lot of new housing.”
At the time, Oklahoma City stood out as a distinct national market because property growth and price trends per square foot closely tracked the US average month-to-month.
“Oklahoma City being a national ‘benchmark’ is neither good nor bad – it means that OKC is the market (among the top 50 cities) that is most representative of national trends,” Krimmel explained. “As of the year 2026, the national narrative is actually working in Oklahoma City, which obviously isn’t the case in outside markets like Milwaukee.”
Regionally, the benchmark metros (Pittsburgh in the Northeast and Nashville, TN, in the South) posted inventory and price growth in line with regional averages. Outliers (Providence, RI, in the Northeast and Washington, DC, in the South) deviate significantly by growing faster or slower than other metros.
