Why Now Is a Great Time to Invest in Rental Properties in Western WI and the Twin Cities

Thinking about investing in real estate? Whether you're a seasoned investor or just starting out, there’s never been a better time to consider rental properties in Hudson, WI, Western Wisconsin, or the Twin Cities metro.

A new report from Freddie Mac revealed something eye-opening: there are now 30 renter households for every home for sale. That demand — paired with a serious lack of housing inventory — makes the current market incredibly favorable for landlords and real estate investors.

Let’s break down what’s happening and why it matters.

Low Inventory Is Fueling Rental Demand

Freddie Mac’s findings are clear: today’s market is drastically different from just a decade ago.

Key stats:

• In 2006, there were about 10 renter households per home for sale

• In 2024, that number has jumped to 30

Why the shift?

• Post-2008 slowdown in homebuilding

• Stricter lending requirements

• High home prices, pushing more people toward renting

This imbalance creates a golden opportunity for investors — especially those focused on markets like Hudson, WI real estate, Woodbury, or St. Paul.

What This Means for Buyers and Investors

For First-Time Buyers:

• Many face challenges due to rising prices and tough competition

• However, government-backed mortgage programs are helping — 53% of Freddie Mac loans in Q2 2024 went to first-time buyers

For Investors:

• High rental demand means more consistent cash flow

• Investors can be selective with tenants — focusing on creditworthy, reliable renters

• Homes for sale in the Twin Cities suburbs or in growing Wisconsin communities are seeing increased investor activity

Pro tip: Look for single-family homes near schools, trails, or town centers — renters love those features, and vacancy rates tend to be lower.

Rising Prices = Stronger Renter Pool

As home prices continue to rise, more would-be buyers are being priced out and turning to rentals. That’s great news for landlords.

What this means:

• More people are renting longer

• Rents are climbing steadily

• Tenant demand remains strong across both urban and suburban areas

This is especially true in Hudson, where many are moving from the Twin Cities to find more space, great schools, and riverfront charm — but not all can afford to buy just yet.

Why Landlords Hold the Advantage — For Now

Right now, landlords are in a great position:

The perks:

• Plenty of renter applicants to choose from

• More pricing power (within reason)

• Lower vacancy rates, especially in well-maintained units

But don’t overdo it.

• Lawsuits, like the one against RealPage, are highlighting how aggressive rent hikes or algorithm-based pricing can backfire.

• Stick with fair pricing and good tenant relationships — they’ll pay off long-term.

Homeowners Are Building Equity Fast

If you already own property in Western WI or the Twin Cities, chances are your home value has increased significantly.

Your options:

• Tap into your equity for renovations or upgrades

• Use equity as leverage to invest in additional rental properties

• Improve your home’s value to increase rent or long-term resale potential

Harvard’s housing study predicts home renovation spending will reach $477 billion annually by 2025 — and savvy investors are using that to their advantage.

Low Inventory Still Makes Buying Tough — But Not Impossible

Yes, it’s competitive. But with the right strategy, buyers can still find opportunities.

Tips for buyers:

• Be flexible on location and features

• Explore smaller towns (like Baldwin or River Falls) for better value

• Use creative financing tools like FHA loans, buydowns, or down payment assistance

Working with a local real estate expert who knows the market — and where the opportunities hide — can make a huge difference.

How Investors Can Win in This Market

If you’re considering becoming a landlord in Hudson, WI or the Twin Cities metro, the numbers are on your side. But success requires strategy.

Consider these investor tactics:

• BRRRR method (Buy, Rehab, Rent, Refinance, Repeat)

• Value-add opportunities (properties that need cosmetic upgrades)

• Off-market deals or creative financing (like subject-to or seller financing)

Focus on markets with steady job growth, good schools, and local amenities — and you’ll be ahead of the curve.

Final Thoughts: The Market Is Challenging, But Full of Opportunity

We’re in a complex real estate environment — but one that favors investors and landlords in a big way.

Whether you're:

• A first-time buyer navigating limited options

• A homeowner considering selling or leveraging equity

• Or an investor looking to build a rental portfolio in Hudson WI real estate or the Twin Cities area

...this is a market full of potential.

Ready to make a move in Hudson or the surrounding area?
Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.

📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area

Read the full article from Blogger Pockets here:  https://www.biggerpockets.com/blog/freddie-mac-report-says-there-is-30-renters-for-every-house

Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.