Real estate values climb throughout city of Milwaukee

Property values throughout the city of Milwaukee are on the rise.

And for the first time in a decade, all 15 of Milwaukee's aldermanic districts have seen total property value increases, information provided by the city assessor's office shows.

"We're fighting back," Milwaukee Mayor Tom Barrett said in an interview Friday.

Nearly 151,000 assessment notices were mailed to city property owners Friday, and the information will be posted on the assessor's website Monday. Seventy-two percent of those owners will see an increase, about 20% will see no change, and about 8% saw decreases in their property values.

That means the average home value in the city has climbed to $108,933, up from $103,000 in 2017, city officials said.

In addition, every category of residential and commercial properties has increased, with apartments climbing in value by more than 10% overall.

The total assessed value of property in the city is nearly $27 billion in 2018, an increase of $1.7 billion from last year.

The biggest jump in property values was in the 15th District, represented by Ald. Russell W. Stamper II. Real estate values there increased by more than 9% overall.

"It's a significant increase," Barrett said. "There's a lot of economic activity going on there."

The mayor noted work in that area with the Strong Neighborhoods Plan, which aims to prevent tax foreclosures, prevent blight and maintain city-owned properties.

Nearly 80 foreclosed homes in the Sherman Park area were slated to be redeveloped last year as part of a $1 million housing rehabilitation program funded by the state, which was announced following last year's violent unrest in the Sherman Park neighborhood.

In the 7th District represented by Ald. Khalif Rainey, which includes Sherman Park, property values increased by nearly 2.8%.

In all but two of Milwaukee's aldermanic districts, residential property values climbed by more than 3%.

Barrett touted the city's increasing property values as a sign that the city is recovering after "being hit very hard" by the recession, the subprime mortgage crisis and the loss of manufacturing jobs.

"We really took it on the chin," he said. "Our message is we're fighting back."

Barrett also pointed to rising real estate values as proof the downtown development boom is benefiting neighborhoods throughout Milwaukee.

Rob Henken, president of the Wisconsin Policy Forum, stressed the importance of property value increases in neighborhoods.

"I think we all have a sense that there's just an amazing amount of new construction going on in the downtown area. In the downtown area, it would certainly be no surprise to hear that property values are on the upswing," Henken said. "To the extent that we are seeing property values grow throughout the city, including in some of our more distressed aldermanic districts, it's certainly very good news."

Owners who believe their property values are too high — or too low — can object to their assessments. Written appeals must be filed by May 21.

City officials use assessments to set the portion of the property tax levy each taxpayer will owe.

Increased assessments do not necessarily mean that taxes on those properties will increase, officials say.