Recent analysis from the Wisconsin State Journal shows that most of the large apartment buildings built in Madison in recent years charge more than the average renter can easily afford.
A list was gathered of 35 city apartment buildings with more than 50 units that were granted occupancy between January 2021–May 2023, as well as rent prices for 31 of those 35 complexes — the other four complexes’ rent could not be obtained.
The median low-end rent for a one-bedroom apartment among those developments was $1,500 per month. The median income for a renter in Dane County, however, is $46,919, according to the 2017–21 American Community Survey by the U.S. Census Bureau.
When renters pay more than 30% of their gross income on housing, they are considered “cost burdened.” Rent in the city at the median income would therefore need to be $1,170 or less monthly to be deemed affordable. Only three rental complexes evaluated had prices at that number or less.
The American Community Survey for 2017–21 also showed that 9% of renters were spending more than 30% of their income on rent, and 33.8% were spending more than 35% of their income on housing.
New apartment buildings in Madison charged rents ranging from $470–$2,275, but only income-restricted housing units offered rents under $1,000. Five of the city’s new apartment complexes are income restricted.
Among the factors contributing to high housing costs are high demand and low supply, a lack of rent-control laws in Wisconsin, limited state and federal funding for low-cost housing, and high permit fees and construction costs for developers.
