Northwoods Home Prices Jump as Listings Tighten in 2026

If you’ve been house hunting up north lately, you’ve probably noticed something: there just aren’t that many homes for sale anymore. The Wisconsin Realtors Association’s January 2026 report confirms what local buyers already know — listings dropped 11.3% compared to last year, ending a two-year streak of improving inventory.

For the Northwoods, this squeeze hits especially hard. Our communities rely on affordable housing to keep young families, seasonal workers, and year-round residents rooted here.

The statewide median home price jumped to $315,000 this January, up 7.9% from $292,000 a year ago. That’s more than double the rate of inflation.

What’s Driving Prices Higher in Our Region

Jackie Leonhard, owner and broker of Northwoods Community Realty, sees the pressure firsthand. In area counties like Vilas and Oneida, median prices surged from around $275,000 in 2024 to $375,000 in 2025 — a hundred-grand jump in just two years.

“It jumped $100,000 in just two years which has put a lot of people out of the market to buy,” Leonhard told WJFW.

“You’re just adding all these things, the rising market, the rising insurance, the interest, all these things, it’s all just inflation. It really is that we printed a bunch of money during covid, and it has made housing prices really high.” — Jackie Leonhard, Northwoods Community Realty

Rising property insurance costs, elevated interest rates, and limited inventory create a perfect storm. First-time buyers now enter the market at a median age of 40 — ten years later than previous generations.

For younger folks trying to plant roots near the lakes and trails they love, that’s a tough pill to swallow.

The Inventory Shortage Explained

New listings fell 11.3% in January compared to last year, snapping a 28-month run of increases. David Clark, economic consultant for WRA and Professor Emeritus at Marquette University, calls this “more of an aberration rather than a reversal of a trend.”

January’s always a slow month up north. Who wants to show their lake property when there’s three feet of snow on the dock?

But the bigger picture matters too. Here’s what’s constraining supply:

• Homeowners hesitant to sell and lose their low mortgage rates from 2020-2021
• Baby boomers aging in place longer before downsizing or moving south
• Seasonal buyers holding vacation properties as long-term investments
• Limited new construction in rural Northwoods counties

Clark expects inventory to improve as demographic trends shift. Boomers aged 62-80 now make up 42% of buyers and 53% of sellers nationwide, and that selling propensity should increase over the next five years.

Mortgage Rates Offer Small Relief

There’s one bright spot: mortgage rates dropped 86 basis points from late January 2025 to January 2026. The average 30-year fixed rate now sits below where it was last winter.

“The decrease in interest is due to the improvement of inflation,” Clark explains. “We’re not quite at the Federal Reserve’s goal of 2% inflation, but we are getting close. We are at under 3%.”

Lower rates don’t magically create more homes, but they do make monthly payments more manageable. For a $315,000 home, that rate drop saves buyers around $150-200 per month compared to last year’s peak.

That might not sound like much, but over 30 years, it adds up to real savings — enough for a new dock, a snowmobile, or a few more years of property taxes.

What This Means for Northwoods Communities

The housing crunch affects more than individual buyers. Our region depends on year-round residents to staff resorts, schools, healthcare facilities, and local businesses.

When housing becomes unaffordable, young families move away. Teachers commute from an hour south. Restaurant owners struggle to find workers who can afford to live nearby.

Seasonal buyers and retirees do bring economic benefits — they pay property taxes, support local businesses, and invest in lakefront improvements. But communities need balance.

Local officials in places like Eagle River and Minocqua are exploring solutions: workforce housing developments, updated zoning for accessory dwelling units, and partnerships with employers to create affordable rentals.

It’s not a quick fix, but it’s a start.

Looking Ahead to Spring Market

Both Clark and Leonhard expect the market to improve as we move into warmer months. Spring traditionally brings more listings as sellers prepare properties during mud season and aim for summer closings.

Northeast Wisconsin already saw a 1.3% uptick in January sales, with median prices climbing 11% to $312,963. If that momentum holds, the Northwoods could see similar activity once the ice goes out.

For buyers, the strategy remains the same: get pre-approved early, work with a local realtor who knows the area, and be ready to move fast when the right property hits the market.

For sellers, this is still a strong market. Homes priced right are attracting multiple offers, especially properties with lake access or recreational appeal.

The Northwoods housing market may be tight right now, but it’s not broken. As inventory gradually improves and rates stabilize, opportunities will emerge for those patient enough to wait — and quick enough to act when the moment comes.