City report signals cooling housing market

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The city of Madison reported the most modest rise in the value of the average single-family home since 2020, the Wisconsin State Journal reports, in a sign that its housing market is beginning to cool. The news follows double-digit percentage jumps in 2022 and 2023 as high demand spiked sale prices.

The rate of increase for an average single-family home slowed to 7.8% in 2024 and 5.2% so far in 2025, according to a new report from the city assessor’s office. That home is now valued at $481,300, compared to $315,200 in 2020.

Assessed real estate value is up 9.1% overall — slightly below 2024’s 9.3% increase and well below the 14.4% increase of 2023. This year’s increase was fueled largely by a record $1 billion in new construction over the previous year. Total assessed value rose by 10.9% for commercial properties and by 8% for residential properties.

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