Property Makler
Advanced analytics for residential real estate investing

Madison, WI housing market

Housing market indicators

Indicator	2022	2023	2024	2025*	2022	2023	2024	YTD
Median Listing Price per Square Feet	$220	$232	$235	$236	7.3%	5.5%	1.3%	0.4%
Active Listing Count	641	652	796	1,282	20.3%	1.7%	22.1%	61.1%
Median Days on Market	68	66	69	55	13.3%	-2.9%	4.5%	-20.3%
Share of listings with price increase	0.7%	0.6%	0.5%	0.4%
Share of listings with price decrease	8.2%	9%	10.5%	12.1%

* last available value

Note: 12M MA - 12 months moving average, Permits - New Private Housing Structures Authorized by Building Permits. Source: FRED

The Madison, WI Metropolitan Statistical Area (MSA) encompasses Dane County and surrounding areas, with a 2024 population of approximately 707,606 residents across 8,570 km².
Core city Madison drives growth, projected to reach 285,300 in 2025 and 385,269 by 2050 per city estimates.
Key geographic regions include urban core (Madison central), university-adjacent areas (near UW-Madison), west side suburbs (Middleton, Verona), east side (Sun Prairie), and rural outskirts (parts of Dane, Iowa, Columbia counties).
MSA includes 17 cities/towns in Dane County primarily, with Dane County population dominating at over 90% of total.

Area	City/Town	Population	Density	Income	Quality of Schools	Crime Level	Property Tax (%)	Comments
Urban Core	Madison	285,300 (2025)	High (3,100/sq mi)	High (median $76,000)	Great Schools 6-10	Moderate	1.58%	UW-Madison hub, fast growth 1.47%/yr
West Suburbs	Middleton	21,800	Medium (2,500/sq mi)	Very High ($100,000+)	Great Schools 8-10	Low	1.65%	Affluent, tech professionals
West Suburbs	Verona	17,000	Medium (2,200/sq mi)	High ($95,000)	Great Schools 7-9	Low	1.62%	Growing family area
East Side	Sun Prairie	37,500	High (2,800/sq mi)	Medium-High ($85,000)	Great Schools 6-9	Low-Moderate	1.55%	Epic Systems jobs, rapid expansion
South Suburbs	Fitchburg	29,000	Medium (1,900/sq mi)	Medium ($72,000)	Great Schools 5-8	Moderate	1.60%	Mixed urban-suburban
North Suburbs	DeForest	11,000	Low-Medium (1,500/sq mi)	Medium ($80,000)	Great Schools 7-9	Low	1.52%	Commuter town
West	Oregon	11,200	Medium (1,800/sq mi)	Medium ($75,000)	Great Schools 6-8	Low	1.68%	Rural-suburban mix
Outskirts	Stoughton	13,100	Low (1,200/sq mi)	Medium ($70,000)	Great Schools 5-7	Low	1.70%	Manufacturing base

To view all table columns, please open this table on a laptop or desktop screen.

No local personal income tax in any MSA areas; only state 3.5-7.65% applies.
Density estimates based on land area; income from recent MSA medians adjusted per suburb.
Property taxes via Dane County rates, averaging 1.6%; schools from GreatSchools.org ranges.
Crime lower in suburbs vs. Madison core.

MSA median household income $81,000, higher than WI average $72,000.
Per capita income $45,200; top 20% households exceed $150,000.
Education levels high: 58% bachelor's degree or higher vs. 32% WI average.
UW-Madison drives 25% with graduate degrees; suburbs like Middleton at 65% college grads.
Demographics: 73% White, 8% Asian, 7% Black, 9% multiracial; median age 36.25.
Young professionals and families dominate due to universities and tech jobs.

Education and health services: 25% employment, led by UW-Madison (45,000 students) and UW Health.
Professional/business services: 18%, including biotech and finance.
Government: 12%, state capitol in Madison.
Manufacturing: 9%, Epic Systems (health IT, 13,000 employees).
Retail and tech startups growing via accelerators.
Unemployment 2.8%, below national 4.1%.

Zoning openness moderate: Madison Comprehensive Plan targets 1.17% annual growth to 2035, but NIMBY resistance slows multifamily.
Regulatory strictness high: Environmental reviews, historic districts limit density in core.
Construction workforce cost elevated: Labor shortage, union wages 20% above national.
New permits average 3,500 units/year, below 5,000 needed for growth.
Land scarcity in urban core pushes development to suburbs like Sun Prairie.
City projections incorporate town annexations for supply.

Net migration in: +5,000/year, driven by tech/biotech jobs at Epic, Exact Sciences.
Growing industries: Health IT (Epic expansion), biotech (UW spinouts), state government.
UW-Madison enrollment up 2%/year fuels student/family demand.
Remote workers from Chicago/Milwaukee inflow post-COVID.
Declining: Traditional manufacturing stable, no major outflows.
MSA growth 5.0% projected 2025, fastest among WI MSAs.

Affordability gap: Median home $420,000 vs. income, price-to-income ratio 5.2.
Inventory shortage: 1.8 months supply, bidding wars common.
Rent burden: 28% of income, highest for young renters near campus.
Zoning barriers block ADUs, missing middle housing.
Interest rates impact construction; 2025 forecasts show slowdown if rates stay high.
Climate risks: Flooding in lowlands affects insurance costs.

Area	Appreciation Potential	Risk	Key Drivers
Madison Core (Isthmus)	High	Medium	Job density, walkability, limited supply
West Suburbs (Middleton/Verona)	High	Low	Affluent influx, top schools, Epic proximity
East Side (Sun Prairie)	Medium-High	Low-Medium	New construction, health IT growth
South (Fitchburg)	Medium	Medium	Spillover demand, but flood risk
North/Outskirts (DeForest/Stoughton)	Low-Medium	High	Commuter appeal, but slower job growth