Milwaukee has so much to offer! It’s a coastal city (yep, beaches in the Midwest), is home to the largest music festival in the world and boasts some of the friendliest residents in the country.
Milwaukee is a thriving city where beer and sports are not only an important part of life — they’re part of the city’s heritage. The people who live here love to have a good time. So much so, in fact, that residents call Milwaukee the City of Festivals.
The population of this city is nearly 600,000, yet many who live here say it doesn’t feel like a big city. It feels like a small town where neighbors know each other and can’t wait to hang out.
The cost of living in Milwaukee is on par with the national average, coming in at only 0.3 percent cheaper. Over the past year, the cost of living has increased by 3.5 percent.
To get an idea of whether this city is truly affordable, it’s important to look at more than just the average rent in Milwaukee. You also need to consider the factors below. Once you do, you’ll feel confident knowing whether a move to Milwaukee is right for you.
Housing costs in Milwaukee
One of the top expenses you’ll have in life is housing costs, so this is something that can impact the cost of living in Milwaukee exponentially. Most experts recommend paying no more than 30 percent of your income on housing costs. However, a 2015 Harvard report found that 45 percent of households that earn $30,000 to $45,000 annually pay over 30 percent on housing.
How much you spend depends on how much you can afford. The average rent in Milwaukee is $1,621 — not the lowest in the nation but definitely not the highest (that honor goes to New York, with an average rental rate of almost $7,000 for a two-bedroom).
Of course, this is just an average, which means you can find apartments for rent in higher or lower cost brackets. For instance, if you found the apartment of your dreams in the Historic Third Ward, you’ll pay $2,821 on average. However, you can find more affordable rates in neighborhoods like Southpoint ($874), Timmerman West ($910) and Woodland Court ($946).
Average rent prices in cities near Milwaukee
On average, housing prices in Milwaukee are 3.9 percent higher than the national average. If this is something you can afford, great! However, if you find that you either don’t like living close to Downtown Milwaukee or can’t afford the higher rental rates, you might want to check out surrounding cities and suburbs. Here are a few to consider.
Home prices in Milwaukee
Another way to potentially save money is by purchasing a home instead of paying the average rent in Milwaukee. Home prices in the city currently hover around $180,000, an increase of 6.8 percent over 2020.
The housing market is somewhat competitive with some homes getting multiple offers and selling for 2 to 8 percent over list price. The average home stays on the market between 34 to 46 days.
If you put the recommended 20 percent down on your $180,000 dream home, your mortgage payment will be around $918 per month.
Food costs in Milwaukee
If you’re a foodie, you’ll be happy to know that your home city made the list of the top 50 restaurants in the country for foodies.
The restaurants in this city create meals that are to die for! You’ll find:
- Brewery cuisine (How could you not? It’s Milwaukee after all!)
- High-end gastronomic experiences
- Laid-back barbeque
- Italian markets
- Pizza + fine dining Italian
- Spanish and Portuguese cuisine
And the great thing about having someone else cook for you is that you’ll save a ton of time — especially on those days/nights when you’re exhausted, super busy or just don’t feel like putting forth the effort to cook.
It’s important to note, though, that eating out regularly can increase the cost of living in Milwaukee. That’s why many residents of this city do their best to cook at home more often. Grocery costs in the city are 0.9 percent higher than the national average, a price range that has increased 6.5 percent in the past year. Here’s an example of what you can expect to pay at a Milwaukee grocery store.
- Ground beef: $4.63
- Sausage: $3.78
- Margarine: $0.91
- Bananas: $0.71
- Cooking oil: $5.57
- Potato chips: $2.82
- Coke: $2.00
- Total: $20.42. The national average for the same items comes to $19.35.
Utility costs in Milwaukee
One area in which you’ll save a few bucks on the cost of living in Milwaukee is the cost of utilities. On average, these costs are approximately 3.8 percent lower, though this is a citywide increase of 1.2 percent over last year’s prices. While that’s not a huge cost savings, there are some things you can do to save money each month.
Bundle utilities like phone, internet and cable. Follow energy-saving tips like doing your laundry at night instead of during peak hours. Turn off any lights you’re not really using. Find more affordable utility service providers (many people overpay for phone and internet). Change your air filters regularly. Switch to energy-saving lightbulbs.
What can you expect to pay each month on utilities in Milwaukee? Here are a few estimates.
- Total energy: $163.51
- Water: Baseline = $25.40
- Sewer: At least $28.28 per month
Transportation costs in Milwaukee
Another area that can increase your cost of living is transportation. In fact, for some people, these costs are so impactful that they can’t afford the average rent in Milwaukee.
On the whole, transportation costs are 4.2 percent lower than the U.S. average.
There are a few ways you can get around the city for work, errands and fun.
- Own your own vehicle: Owning a vehicle gives you the freedom to come and go as you please. But with that freedom comes responsibility, like paying for insurance, fuel and vehicle maintenance. Currently, fuel prices are $2.75 per gallon (the national average is $2.76). A common maintenance cost (tire balancing) will run you around $47.04 ($5.36 cheaper than the U.S. average).
- Take public transportation: The Milwaukee County Transit System has a fairly good transit score (53). The MCTS offers a one-way fare for $2 or an all-day pass for $4. You can purchase a 7-day pass for under $20 or a month-long pass for $72.
- Walk/bike: The walkability and biking scores in Milwaukee are higher than average (70 and 69, respectively). There are some great walking paths around the city. Not only does the city have well-defined bike lanes throughout, but they also have a bike-share program. Bublr Bikes is a non-profit bike share program that charges $0.25 per minute, $24 for a 24-hour pass, as well as a 30-day and 100-day membership that allows you up to 60 minutes of riding time, plus a reduced rate of $3 for every additional 30-minute increment.
Healthcare costs in Milwaukee
One area that can dramatically increase your cost of living in Milwaukee is healthcare. The reason for this is two-fold.
First, everyone is so unique. Every single person’s medical needs differ. Because of this, it’s hard to determine an average healthcare cost for a particular city. What you end up paying might be drastically higher or lower than your neighbors, co-workers or even other family members.
Second, healthcare costs in Milwaukee tend to be higher than the U.S average by 12.5 percent, a 0.6 percent rise since last year. OTC medications (like a bottle of ibuprofen) cost around $8.89 (a little over a dollar cheaper than the U.S. average). Prescription medications are about 4.39 percent higher than the national average.
Here’s a breakdown of what you might pay for certain medical visits compared to others in the U.S.
- Eye exam: $65.40 in Milwaukee; $105 – national average
- Dental check-up: $102.80 in Milwaukee; $99.44 – national average
- Annual doctor’s visit: $183 in Milwaukee; $112.81 – national average
Though it isn’t always easy to determine exactly how much you’ll pay each month or year toward healthcare costs, it’s wise to get a baseline idea. Doing so will give you a better idea of how much money you must put toward rental costs and whether you’re able to afford the average rent in Milwaukee or not.
Goods and services costs in Milwaukee
Once you’ve paid for the necessities of life (food, shelter), it’s time to look at how much you’ll spend on the non-essentials. These are things like dry cleaning, salon visits, plants, knick-knacks, furniture, toilet paper, make-up, pet care, etc.
The cost of miscellaneous items and services in Milwaukee is 3.8 percent lower than the U.S average. The amount you spend on these things will likely vary from month to month but getting an idea of the average you spend can help you stick to your budget and keep the cost of living in Milwaukee more affordable.
Some common items that fall into this category include:
- Hair cut: $25
- Yoga: $20.50
- Movie: $11.59
- Wine: $9.95
- Beer: $8.32
- Vet visit: $50.46
- Total: $125.82. The total cost of the same list (according to the national average) is $117.23.
Taxes in Milwaukee
Another factor that can increase the cost of living in Milwaukee is the tax rates.
- Income tax rate: The individual income tax rate (3.54 percent to 7.65 percent) varies depending on your income and marital status.
- Property tax rate: The residential property tax rate in Milwaukee County is 2.53 percent. If you pay the median home rate of $180,000, you’ll owe $4,554 per year in property taxes.
- Sales tax rate: The sales tax rate in Milwaukee is 5.5 percent. If you make a purchase worth $1,000, you’ll pay an additional $55 in sales tax. The breakdown: Wisconsin sales tax = 5 percent; Milwaukee County sales tax = 0.5 percent; Milwaukee (city) sales tax = 0 percent. Something else to consider when it comes to taxes is whether you work out of state. In some cases, you may have to file taxes in your work state, as well as your home state.
Thankfully, there’s a provision that helps keep workers’ tax rates low. It’s called reciprocal agreements. These are agreements between neighboring states that say you can work in that state without having to pay taxes to that state. Wisconsin has reciprocal agreements with:
- Illinois
- Indiana
- Kentucky
- Michigan
If you work in a state that doesn’t have a reciprocal agreement with Wisconsin, you may have to file taxes in both your home and work state. However, federal law prevents the taxation of the same income by two states. In this case, you’ll likely get credit for any taxes withheld by the state where you work.
How much do you need to earn to live in Milwaukee?
To determine whether you can afford the cost of living in Milwaukee, you need to look at a couple of factors.
First, how much you earn annually. According to the U.S. Census Bureau, the average Milwaukee resident earns $41,838 annually.
Next, we’ll calculate 30 percent of that amount, which is the maximum amount financial experts recommend paying each month in rent. Thirty percent of $41,838 is $12,551.40 annually, or $1,045.95 per month.
Finally, we’ll look at the average rent in Milwaukee, which is $1,621. This is over $575 the goal amount.
Can you afford that? Possibly, if you don’t have a lot to pay in the way of utilities, transportation, healthcare and taxes. Another way you can afford the average rent in Milwaukee is if you earn more than the median annual income.
To determine whether Milwaukee rental fees fit into your budget, check out our free rent calculator.
Understanding the cost of living in Milwaukee
The cost of living in Milwaukee is like that of many other cities in the U.S. It’s not overly expensive like Los Angeles, Seattle, Chicago or New York. But it’s not the cheapest, either.
Nearly 600,000 people call Milwaukee home. If they’re able to make it, so can you! With some research and number crunching, you can determine whether a move to this city is right for you and your family. To help make the decision even easier, be sure to check out our rental listings. You can find apartments for rent in Milwaukee that fit your budget so you can live comfortably and thrive in this great city.
Cost of living information comes from The Council for Community and Economic Research.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.com’s multifamily rental property inventory of two-bedroom apartments as of August 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Source: rent.com