A new study commissioned by the Commercial Association of Realtors Wisconsin (CARW) concluded that removing a portion of the I-794 freeway in downtown Milwaukee could slow economic growth in southeastern Wisconsin by more than $560 million a year.
The analysis, conducted by DMP Development Analytics and supported by the National Association of Realtors, evaluated the three options currently under consideration by the Wisconsin Department of Transportation (WisDOT): rebuilding, redesigning or removing I-794 between the Marquette Interchange and the Hoan Bridge.
According to CARW, the report represents the first independent, regional economic review of the proposed changes.
The study concluded that eliminating the freeway could negatively affect freight movement, workforce commuting and tourism-related travel. It estimated that a 1% reduction in freight efficiency could reduce annual economic growth by about $118 million, while a 1% slowdown in workforce access could cost roughly $444 million.
Based on those findings, the report recommends improving or redesigning the existing freeway rather than removing it entirely. The study’s authors also suggest exploring targeted design changes to enhance safety, accessibility and opportunities for new development.
CARW said it commissioned the study to provide an economic perspective from the commercial real estate sector. The group gathered input from local stakeholders in manufacturing, finance, tourism, real estate and hospitality, who emphasized the importance of maintaining efficient transportation access for downtown Milwaukee and the surrounding region.
CARW said the association hopes the data will contribute to a “practical, data-driven” decision about I-794’s future.
“We heard clearly from stakeholders across every industry — from manufacturing and freight to tourism and retail — that Milwaukee needs an I-794 solution that strengthens, not weakens, our economic foundation,” said Tracy Johnson, CEO of CARW. “The data shows that a well-designed improvement plan can enhance safety, free up space for development, and keep our region connected and growing.”
WisDOT last week presented detailed traffic impacts of the I-794 redesign and removal options, and plans to release its own study related to freight traffic and potential development opportunities at future meetings.
The potential development of the I-794 corridor, if the freeway were removed, has been a point raised in favor of the freeway removal option by Rethink 794 advocates. Freeway removal could generate more than 3,000 housing units and $535 million in property and sales taxes, over 30 years, a 2024 study commissioned by Rethink 794 found.
“We believe this biased study represents the status quo and apprehension toward transformational change that would strengthen the downtown core with housing, tourism and business opportunities and ripple benefits throughout the state and region,” Rethink said of the CARW-commissioned study. “It’s sad this group has taken such a position before the DOT Study’s full data on economic growth and vast benefits of removal comes out.”
The next public meeting is expected in spring 2026, with a preferred alternative to be presented at a public hearing later that year. A final design is expected to be completed in 2030.