Downtown Madison Inc. (DMI) today released its 2023 State of the Downtown Report. Among its key findings is an increase in visitors to the downtown area much higher than expected. State Street’s pedestrian counts last year were near pre-COVID-19 levels — in 2019 they hit 3.27 million. Visitor spending increased to $278 million last year over $178 the year prior.
The downtown population expanded to 33,931, up around 1,000 since 2020. Over 84% of residents are younger than 35, and downtown residents have a lower per capita income than the rest of the city.
The median home value of downtown Madison homeowners was $539,946 in 2023, as compared to $393,925 in 2020. High interest rates and high construction material costs are contributors to the rising prices.
Roughly 87% of downtown residences are apartments, and there were 11,129 units downtown in 2023 — a 50% increase from the 7,423 units in 2011 — but it’s not enough to alleviate persistent housing shortages. More downtown residents are spending a third or more of their income on housing than those in other parts of the city. They pay an average of $2,032 in rent for the average city apartment size of 838 square feet, as compared to a citywide average rent of under $1,600 for the same size apartment.
Office vacancy rate downtown hit 16.7%, largely due to hybrid and remote work. Madison’s Central Business Improvement District was home to 380 businesses in 2020 — 20% retail, 42% restaurants, and 38% service. In 2023, there were 363 businesses — 18% retail, 45% restaurants, and 37% service.
DMI plans to work with the city in creating a strategic plan for ensuring that downtown Madison accommodates both visitors and residents.
