Photo: Uptown Crossing, Fitchburg WI
Data provided by Redfin, a national real estate brokerage
Madison’s Home Prices vs. Other Midwest Cities
Relative to other Midwestern metros, Madison, Wisconsin ranks among the most expensive housing markets based on the median sale price. When compared with Chicago, Minneapolis, Indianapolis, and Columbus, Ohio, Madison typically has the highest median home price, followed by Minneapolis and Chicago.
Affordability: Cost of Housing Relative to Income
Another lens on “expensive” is how median home prices relate to median household income. The Cost of Housing Index (CHI) from NAHB/Wells Fargo estimates the share of a typical family’s pre-tax income needed for the mortgage payment on a median-priced home.
Q2 2025 CHI (selected Midwest metros):
| Metro Area | CHI (Q2 2025) |
|---|---|
| Madison, WI | 35% |
| Chicago, IL | 35% |
| Minneapolis, MN | 29% |
| Columbus, OH | 30% |
| Indianapolis, IN | 27% |
What’s Driving Madison’s Home Prices?
Like most markets, supply and demand are central. When housing supply is limited, above-median-income buyers can bid prices up. On the demand side, Madison benefits from:
- A diverse, growing economy
- Job opportunities in education, healthcare, and technology (UW Madison, Epic Systems, Exact Sciences, Promega, American Family, and many other employers)
- Lifestyle advantages—lakes, trails, and vibrant neighborhoods
Population Growth & Long-Run Demand
The City of Madison is projected to grow from 269,840 (2020 Census) to 385,269 by 2050 (City of Madison population projections). Dane County is expected to expand by about 39%, reaching nearly 780,000 residents by 2050 (as reported by The Cap Times). In contrast, Wisconsin overall is projected to decline by around 3% over the same period.
This combination of rapid local growth and constrained housing supply helps explain why Madison stands out as one of the more expensive Midwest housing markets.
Questions About Madison’s Market?
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