A July 29 study by Apartment List found that Madison’s median rents for one- and two-bedroom apartments have increased by 47% since 2020, according to Isthmus.
The city’s median rent is $1,488 for a one-bedroom unit and $1,664 for a two-bedroom unit. Both numbers exceed their national counterparts, with the U.S. median rent prices for one- and two-bedroom units being $1,231 and $1,387, respectively.
While Dane County’s vacancy rate has reached 7.1%, the highest level in more than five years, vacancy rates in Madison remain somewhat lower at 3.6%, Apartment List said. The city’s vacancy rates fell below 2% in 2022 and hovered around 2.5% in 2023 before gradually increasing last year.
Yearly rent increases have slowed substantially compared to 2024 and prior years — reportedly due to a recent increase in supply as developers build more housing — but that new construction is likely to slow as developers wait for units to be absorbed into the market, and as a result of high interest rates and tariffs on construction materials.
Dane County’s housing supply has not kept pace with population growth for over a decade, and the issue could worsen. Madison is expected to gain 115,000 residents by 2050, a 30% increase, and Dane County as many as 217,000, a 38% increase, in that time.
