Affordability and Home Prices in Madison in 2025

As someone who’s been in real estate for years, Amber Huemmer since 2024, I’ve helped buyers and sellers through all types of markets. But I can honestly say today’s affordability challenges—especially for first-time buyers—are among the toughest I’ve seen, and they’re hitting hard right here in Madison, Wisconsin.

Over the past few years, home prices in Madison have climbed rapidly. The median price is now hovering around $470,000, up nearly 9% from just a year ago. See what your home is worth here.

I sit across from buyers all the time—people who are financially responsible, pre-approved, and excited to build a future in this city. One of the biggest reasons for this affordability crisis is the lack of available housing. Madison continues to grow thanks to its strong job market, universities, and overall quality of life, but housing construction hasn’t kept up. There simply aren’t enough homes for the number of people who want to live here. Making matters worse, vacancy rates are extremely low—around 2.5%—which puts more pressure on prices.

But it’s not all doom and gloom. There are real solutions we can pursue, and they need to happen at every level—city, state, and community.

For buyers trying to make it work in this market, I always recommend thinking creatively and staying prepared. Exploring neighborhoods just outside the city core can uncover better value. Being open to homes that need a little TLC can help build equity. And most importantly, staying financially ready means you can act fast when the right opportunity appears. Contact one of our preferred lenders to get pre-approved and ready to act.

This market is tough, no doubt about it. But it’s not impossible. I’ve helped thousands of families find homes—even in tough conditions like these—and I believe that with the right mindset, good guidance, and a willingness to adapt, homeownership in Madison is still within reach. Let our team help you get prepared! Contact Amber Huemmer today.

The Huemmer Home Team
LPT Realty
608-279-5424