Madison

WIMadison Metropolitan Area

Real Estate Market Analysis

Q3 2025 Report
$350,000–$435,000 (median varies by source and month in 2025)
Median Home Price
~273,000 (city); ~700,000 (metro area)
Population
$77,000 (2024 estimate, city)
Median Income
Madison Metropolitan School District: B+ (Niche, 2025)
School District Rating

Market Overview

Property Values

$350,000–$435,000 (median varies by source and month in 2025)
Median Home Price
$231–$249 (as of mid-2025)
Price per Sq Ft
+6.0% to +16.7% (depending on source and segment)
YoY Change

Market Performance

Days on Market15 days (median, early 2025)
Market TypeSeller’s market, but moderating
Months of SupplyInventory up 8.1% MoM in June 2025; still a seller’s market but less intense than 2022–2023

Sales Activity

Sales Volume917 homes for sale in June 2025 (+8.1% MoM); 683 single-family homes listed in April 2025 (+15% YoY)
Metro AreaMadison Metropolitan Area
Population~273,000 (city); ~700,000 (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate~2.7% (Dane County, early 2025 estimate)
Job Growth RateSteady, driven by tech, healthcare, education, and government
Median Household Income$77,000 (2024 estimate, city)

Major Employers

  • University of Wisconsin–Madison
  • Epic Systems
  • American Family Insurance
  • UW Health
  • State of Wisconsin

Demographics

~273,000 (city); ~700,000 (metro area)
Population
31.5 years (city)
Median Age
+1.1% annually (metro area, 2024–2025)
Population Growth
Highly educated; 57% bachelor’s degree or higher (city)
Education Level

Family Composition

Mix of young professionals, families, and retirees; strong student population

Key Industries

Higher educationHealthcareTechnologyInsuranceGovernment

Education

School District

Madison Metropolitan School District: B+ (Niche, 2025)
District Rating

Top Schools

  • Shorewood Hills Elementary
  • Van Hise Elementary
  • Hamilton Middle School
  • West High School

Higher Education

  • University of Wisconsin–Madison
  • Edgewood College
  • Madison College

Infrastructure & Development

Major Projects

  • Bus Rapid Transit (BRT) system expansion (2025)
  • Judge Doyle Square redevelopment
  • UW–Madison campus upgrades

Transportation

  • BRT Red Line (operational 2025)
  • Bike lane expansions
  • East–West corridor improvements

Planned Developments

  • Mixed-use projects downtown and near UW campus
  • Affordable housing initiatives

Lifestyle & Amenities

Recreation

  • Lake Mendota and Monona waterfronts
  • Extensive bike trails
  • Olbrich Botanical Gardens

Dining & Entertainment

  • Vibrant downtown restaurant scene
  • Breweries and coffee shops
  • Live music venues

Cultural Attractions

  • Overture Center for the Arts
  • Wisconsin State Capitol
  • Chazen Museum of Art

Investment Analysis

Investment Opportunities

  • Rising inventory offers more selection for buyers
  • Steady appreciation (4–6% forecast for 2025)
  • Strong rental demand from students and professionals

Growth Outlook

Moderate, sustainable price growth expected through 2025

Market Risks

  • Mortgage rates remain in 6–6.5% range
  • Affordability pressures for first-time buyers
  • Potential volatility from national policy changes

Rental Market

Strong demand; typical 3BR rents ~$1,600/mo; low vacancy near campus

Marketing Intelligence

Target Demographics

  • Young professionals
  • University faculty and staff
  • Medical professionals
  • Relocating families

Marketing Channels

  • Zillow, Realtor.com, Redfin
  • Facebook and Instagram ads
  • Local real estate websites

Pricing Strategies

List slightly below recent comps to drive multiple offers; adjust quickly if no traction

Common Objections & Response Strategies

Objection: Interest rates are too high.

Response Strategy:

Show historical context; demonstrate monthly payment scenarios and potential for refinancing later.

Objection: Not enough affordable homes.

Response Strategy:

Highlight up-and-coming neighborhoods, condos, and fixer-uppers; discuss down payment assistance programs.

Objection: Homes sell too quickly to compete.

Response Strategy:

Prepare buyers with pre-approval and flexible offer terms; leverage escalation clauses.

Professional Recommendations

1

Educate buyers on financing options and market realities.

2

Advise sellers to price accurately and prepare homes for market.

3

Leverage digital marketing and virtual tours to reach remote buyers.

4

Monitor local policy changes affecting property taxes and development.

5

Network with relocation specialists and university HR departments.

Competitive Analysis

Comparable Markets

  • Minneapolis–St. Paul, MN
  • Ann Arbor, MI
  • Des Moines, IA

Market Positioning

Affordable, stable, and attractive for both residents and investors

Competitive Advantages

  • Lower cost of living than coastal metros
  • Strong job market and university presence
  • High quality of life and amenities

Price Comparison

Madison’s median home price is lower than Minneapolis and Ann Arbor, but higher than Des Moines

Investment Metrics

4.5–5.5% (multifamily, 2025)
Cap Rates
5–6% gross yields (typical for student rentals)
Rental Yields
~18–20 (citywide average)
Price-to-Rent
Positive cash flow possible in student and workforce housing segments
Cash Flow
4–6% for 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

Face affordability and competition; benefit from down payment assistance and focusing on condos or up-and-coming areas.

Move-Up Buyers

Can leverage equity gains; more options as inventory rises.

Downsizers

Strong demand for low-maintenance condos and townhomes near amenities.

Investors

Student and workforce rentals offer strong yields; focus on proximity to UW–Madison.

Relocators

Attracted by job opportunities, quality of life, and relative affordability.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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