Rent vs buy in Wisconsin
At today's numbers and over 7 years, renting comes out ahead in 12 of the 12 cities of 50,000+.
Renting or buying in Wisconsin's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Madison | Rent | renting wins by $79k | none in 30 years | $424,543 | $1,837 |
| Kenosha | Rent | renting wins by $15k | year 11 | $281,730 | $1,627 |
| Janesville | Rent | renting wins by $65k | none in 30 years | $296,361 | $1,165 |
Sources: Zillow Home Value and Observed Rent indexes. Verdicts come from our rent vs buy method, which uses 20% down over 7 years.
The Wisconsin view
Over 7 years, renting comes out ahead in 12 of Wisconsin's 12 cities with 50,000+ residents. You only get near breaking even when rents sit high compared with home prices. In Milwaukee, a typical home goes for $223,304, while rent runs $1,443 a month. Over 7 years, renting wins by $4k. Break-even comes in year 8. Kenosha is the next closest option: renting wins by $15k, and break-even arrives in year 11.
When homes cost more, or rents stay low, you end up further behind. A typical home in Madison costs $424,543, while renting runs $1,837 a month. Renting is ahead by $79k over 7 years, and break-even won't happen for you in 30 years. In Green Bay, the typical home is cheaper at $285,670, yet $1,088 rent puts renters $62k ahead. There too, buying doesn't catch up in 30 years.
The state numbers tell the same story. Property tax on a typical $337k home comes to 1.42%, well above the 0.94% US rate. Compared with the national $1,308, homeowners insurance runs $991 a year for you, and over the last 10 years prices grew at a rate of 7.3% a year. Still, renters pay a median $1,087 a month, while the US figure is $1,413; 32% of households rent, compared with 35% nationally.
Our take: rent in Wisconsin, and hold on to the monthly savings that come with it. Buying pays off only for those in Milwaukee or Kenosha who stay past year 8.