New analysis of Madison housing market will inform policy decisions, help students understand options 

Numerous factors, some of them unique to Madison, combine to make the local housing market challenging for some University of Wisconsin–Madison students, although there are hopeful signs, and many students are finding practical ways to lower their rents, according to a new study commissioned by the city and the university. 

UW–Madison officials say they’ll use the study’s key findings to guide future policy decisions and better help students find the housing that best suits their needs and budgets. 

“We know that housing costs in Madison have been increasing, which affects our students,” says Rob Cramer, vice chancellor for finance and administration. “Addressing this complex issue will take cross-sector collaboration. This study is an important step in our ongoing efforts to work closely with the city and the private sector to ensure that students have a variety of suitable housing options.” 

The idea for the study originated with Madison Alder Juliana Bennett, a recent UW–Madison graduate. She approached the university about ways it could help the city understand housing affordability for students.  

The study was jointly funded by the city and the university and undertaken by Chicago-based consulting firm Jones Lang LaSalle Inc. (JLL). The study is composed of two parts: an analysis of the Madison student housing market and a survey that asked students about their off-campus housing experiences. The authors also offer recommendations for policy makers. Here’s a closer look: 

Competitive market 

The study finds that the housing market in Madison is unique for its combination of student-focused housing and housing designed to appeal to young professionals and downtown workers. This deep pool of potential renters means UW–Madison students are competing for housing with thousands of non-students drawn to a vibrant downtown scene in a highly desirable capital city. And unlike traditional purpose-built student housing, most properties near campus rent by the unit instead of by the bed. Other findings of the market analysis: 

• Rentals near campus have a 98% occupancy rate. 

• Many more units are on the way. In the last decade, 6,017 units have been added within a 2.5-mile radius of campus. An additional 1,700 units are in the pipeline to be delivered in the next three years. And, in a sign that there is demand and strong interest from developers and the investment community, one company recently announced plans to develop 4,000 student beds. 

• Student demand for off-campus housing has been influenced by increased UW–Madison enrollment, a limited on-campus housing supply, and a culture of students moving off-campus after the first year. “Enrollment has grown without a corresponding increase in the on-campus housing supply,” the study notes. And in a reference to efforts to expand available beds on campus, study authors added: “Temporary measures such as converting doubles to triples and using hotels underscore the space constraints.”

Affordability analysis 

The authors found that the average monthly rents per bed for off-campus housing in Madison are among the highest in the Big Ten Conference, while rents for on-campus, university-owned beds are below the Big Ten average. 

The housing market surrounding UW–Madison offers a range of options at various prices, with an average monthly rental cost of $1,273 per bed, according to the analysis. Approximately 31% of surveyed units are priced below $1,000 per bed, and lower-cost options can be found farther from campus. The study found that “the Madison market has many off-campus older properties that can provide a great value for students.” 

Using data from the student survey as a benchmark, JLL determined that “affordable” housing for a UW–Madison student could be defined as rent of around $980 per month. Generally, only properties 20 years or older in Madison meet this metric for single-occupancy bedrooms. However, affordability can be achieved at newer properties by sharing a bedroom. 

Student survey  

The student survey was distributed to 46,000 undergraduate and graduate students; 4,401 students responded, of which 3,599 completed all questions.  

“It was important that we give students a voice in the process,” says Gavin Luter, managing director of UniverCity Alliance, which is part of UW–Madison and helped shape the survey. “Having them tell us about their experiences in the housing market through a survey was one way we could do that. We realize that not all students feel the same way about housing. For example, what is affordable to some may be unaffordable to others, and vice versa.” 

While the market data shows that the average monthly rent near campus is $1,273 per bed, the average amount students self-report paying as their personal share of rent each month is $903. This is achieved in several ways, such as by living in older properties or sharing bedrooms. (Neither amount includes utilities.) Twenty-seven percent of students share a bedroom to save on rent, the survey found. This is a significantly higher percentage than at similar-sized institutions. (The percentage is more typically around 10%, according to JLL.) The survey found that sharing a bedroom typically cuts about $100 a month off rental costs.  

Students said their top reason for wanting to live off campus was a desire for more privacy and independence (69%). When searching for housing, students said they primarily consider cost and proximity to campus. 

The survey found that the fall timing of the leasing season at UW–Madison puts pressure on students, especially first-year students who do not have time to fully understand the market or identify roommates. The timing also increases the pressure on transfer and graduate students because their admissions decisions do not typically align with the early leasing timeline.

Recommendations  

The consultants recommend building more on-campus housing so that the university can reduce the need for temporary spaces and accommodate more students who want to remain on campus after their first year. Living on campus at UW–Madison is among the most affordable options for students, with average monthly rent for a bed in a double-occupancy unit at $869. UW–Madison last opened a new dorm in 2013 (Leopold Residence Hall). There is no requirement for UW–Madison students to live in University Housing. 

“University Housing has been actively working with the Universities of Wisconsin and our state partners to pursue options that would enable us to house all students who desire to live in campus residence halls,” says Associate Vice Chancellor Jeff Novak, who leads University Housing. “We are trying to move this process forward as quickly as possible.”  

One option that UW–Madison is proposing is a state project to construct new residence facilities to increase capacity on campus by up to 2,000 beds, but it needs multiple approvals to proceed. (The university does not have the authority to commission or construct new housing.) The UW Board of Regents on Aug. 22 approved this project request as part of its six-year capital development plan and its 2025-27 state biennial budget request. Gov. Tony Evers and state lawmakers would need to approve the project and bonding authority for construction of the new facilities, though costs would be covered entirely by room rents and dining fees. No state funding or taxpayer money would be involved. 

The consultants encourage finding ways to help students understand the city’s housing market. Last year, University Housing created the Off-Campus Housing Services office, which provides students with the resources to make informed decisions and follow-up support. 

“This study provides concrete facts about the market and numerous new insights that will be tremendously helpful in advising students and families and responding to their questions,” says Erin Warner, assistant director of Off-Campus Housing Services. “Importantly, it confirms that there are several practical approaches students can take to lower rent costs.” 

The consultants note that UW–Madison is helping many students offset college expenses through financial aid initiatives that guarantee financial support to cover not only tuition and fees, but also housing, food, books and other educational expenses. Those initiatives include Bucky’s Pell Pathway for students from Wisconsin, the BANNER program for non-residents, and the Wisconsin Tribal Educational Promise Program for Wisconsin residents who are enrolled members of federally recognized Wisconsin American Indian tribes. 

The consultants recommend that the City of Madison “continue to implement and enhance density bonuses for developers who include a percentage of affordable housing units in their projects” and to consider tax incentives and other innovative approaches to encourage lower-cost student housing. For the private sector, the study recommends a later start to the leasing season, and that developers explore unit configurations that encourage density while maintaining social spaces. They also encourage the university and the private sector to explore public-private partnerships for off-campus student housing. 

If you encounter any accessibility barriers while accessing the content in the PDF that is linked to in this article, please reach out to off-campus@housing.wisc.edu for assistance.