Madison home values see smallest jump since 2020 as sale numbers drop

On the heels of a couple of feverish years, Madison’s housing market is showing signs of cooling, with the city reporting the most modest rise in the value of the average single-family home since 2020.

Madison saw a double-digit percent jump in its average home value in 2022 and again in 2023 as high demand pushed sale prices skyward. The rate of increase then slowed to 7.8% in 2024 and to 5.2% in 2025, according to a new report from the city assessor’s office.

The average single-family home is now valued at $481,300. In 2020, that number was $315,200.

“What we’re seeing now is sort of a shift to, in my opinion, a steady and sustainable growth,” said Michelle Drea, Madison’s city assessor. “I think we’re moving away from pandemic impact.”

The report shows assessed real estate value up by 9.1% overall, driven in part by a record $1 billion in new construction over the previous year. Total assessed value went up by 10.9% for commercial properties — including a 13.1% rise for apartment buildings — and by 8% for residential properties. The change in assessed value as a whole is slightly below last year’s 9.3% increase but well below the 14.4% increase in 2023...

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RSK: They have gone up much faster in my neighborhood.