As the capital of Wisconsin, Madison is a great place to live for many reasons. Job opportunities bring in young professionals, and solid neighborhoods and kid-friendly amenities attract families. Even college students flock to Madison.
Local lakes provide ample activity in any season, and many Madison residents spend summers kayaking or fishing and winters ice skating and snow shoeing. There are also plenty of cultural experiences to partake in, and so much cheese!
When it comes to the cost of living in Wisconsin, Madison is almost at the top. Eau Claire has a higher cost, but both are only slightly over the national average. Specifically, the cost of living in Madison is just 0.6 percent above the U.S. average.
This can mean certain expenses in the city are on the higher side, but not necessarily all. To get a clear picture of what it really costs to live in the Mad City, let’s break it down.
Housing costs in Madison
Thinking about where to live in Madison can be fun. That’s thanks to the variety of neighborhoods with appealing features. Although housing costs in Madison are considerably higher than in many other Wisconsin cities, at 3.1 percent below the national average, it’s not too expensive either.
With housing costs almost the same as in Milwaukee, Madison has seen very little movement in actual rent prices over the past year. The average rent for a one-bedroom apartment in Madison is $1,344 per month. For a two-bed, the average rent is $1,622 per month. One-bed rents are actually down 5 percent over last year, while two-bedrooms apartments only saw a 3 percent increase.
Sale prices for homes also have increase by 6.1 percent over last year — the median sale price in Madison is $355,400.
Apartment hunting in Madison
No matter your budget, you can find housing options among the best neighborhoods in Madison.
For those with a plenty to spend on housing, Schenk-Atwood has one-bed apartments for $1,622 a month on average. Living here puts you in the funky section of Madison, with access to plenty of ethnic restaurants and eclectic shops. This area draws in young professionals, artists and those who want to live near the water.
Also at the higher end of the rent scale, South Madison offers up one-bedroom apartments for $1,539 on average. This is the neighborhood where the college students live. It’s the home of the University of Wisconsin – Madison.
If you’re looking for a neighborhood where rents are more closely aligned to the average, check out Near West. This community is close to Downtown, walkable and full of shopping and dining options. There’s also great lake access. Here, you’ll pay $1,347, on average, for a one-bedroom apartment.
Even living below average housing costs can put you in a great neighborhood in Madison. For those on a tighter budget, check out Marquette and South West Madison. Marquette one-beds average out at $1,295 for rent, while South West Madison has a one-bed rent average of $1,130.
Living in Marquette is more than just affordable — it’s cool. This bohemian neighborhood is the center for Madison festivals too. On the opposite end of the spectrum, South West Madison is a quiet, suburban community that’s almost totally residential.
Food costs in Madison
CHEESE. That’s what Madison is all about. Beyond those delicious cheese curds, you’ll find dishes like beer cheese soup and cheese bread. You can even find a mac and cheese pizza if you look hard enough. Since dairy farming is a key industry throughout the state, a love of dairy extends beyond cheese to other products like custard as well.
Even if you’re not heading out for a cheesy meal, but instead getting a list together to do some grocery shopping, food costs in Madison are 3.7 percent above the national average. Even though this piece of the cost of living in Madison is high, it was almost an entire percentage higher last year.
This means prices are coming down, even though they’re still higher than average, so when you’re at the store filling your grocery cart, expect to pay $5.32 per pound for ground beef, $2.47 for a half gallon of milk, 54 cents for bananas and $2.42 for a bag of potato chips.
Utility costs in Madison
Madison may be a Midwestern city, but its northern location means very defined seasons. You get cold in the winter, forcing your heater to work overtime, and hot in the summer, letting that AC rip. When it comes to snow, Madison’s heaviest months are January and December, where average snowfall exceed a foot. And as far as rain is concerned, expect to have a wet summer.
With all this weather to contend with, and temperatures that are up and down, the cost of utilities in Madison is 4.1 percent above the national average. This is pretty on trend across Wisconsin. Eau Claire gets as high as 5.4 percent above, and Milwaukee is 3.7 percent above.
This can make your average energy bill in Madison high. Paying $196.87 per month on average, for energy is no joke and will require you to budget carefully.
Transportation costs in Madison
Overall, transportation costs are one of the lower pieces to the cost of living in Madison. At 2.8 percent below the national average, transportation costs may not hit your budget too hard. Even better, Madison provides plenty of options for getting around that can help you save some money.
Madison as whole has a walk score of 64, but what’s most impressive is the city’s bike score of 75. Madison actually has a Platinum Bicycle Friendly Designation from The League of American Bicyclists. This means the city has plenty of on-street infrastructure for bicyclists. There are also plenty of trails around lakes and within local parks for riding.
Public transportation is also an option in Madison. Metro Transit includes 47 different bus routes. Some only run on certain days of the week, but the entire system services an extensive area. A one-way fare is $2, and a 31-day pass is $65.
If you are driving around Madison, and find yourself downtown, parking garages, lots and meters are all available. Garage rates range from $0.80-$1.80, while lots are all between $1-$2. Downtown meters are $2 .
Healthcare costs in Madison
While healthcare costs are hard to estimate since everyone’s needs are different, it is good to know that overall, in Madison, they’re 13.9 percent above the national average. This is a 3.6 percent decrease over last year, but it’s still high. This rate is pretty consistent across Wisconsin, with extremes in Marshfield (32.2 percent over) and Green Bay (7.6 percent below).
Your individual expenses will depend on your health, pre-existing conditions and prescription medication needs, which is why it’s necessary to look closely at your budget for this particular cost of living in Madison.
On average though, without insurance, a doctor’s office visit will cost you $204. To see an optometrist, it will cost $65.67, while the dentist will run $114.67, on average. Average medication costs, without insurance, are $476.16.
Goods and services costs in Madison
Another piece to your cost of living in Madison that sits on the high side are goods and services. They’re 0.3 percent above the national average. This incudes any of those bonus items that go into your monthly budget. They’re what you like to do, but could do without if you needed to make some budget cuts.
Compared to other cities in Wisconsin, Madison’s average costs are right in the middle. Eau Claire is higher at 16 percent over the national average, but Marshfield is 12.3 percent below. That means you’ll pay, on average, $26.67 for a haircut, $11.69 to see a movie and $8.32 for that six-pack of beer you want to bring to the house party you’re headed to on Saturday.
Taxes in Madison
Another piece that makes Madison a decently affordable place to live is its taxes. The state has a sales tax rate of only 5 percent, which is already pretty low. Dane County, where you’ll find Madison, only adds a small county tax onto this total, bringing up the sales tax rate to 5.5 percent.
This is the highest sales tax rate across the state, and pretty standard for just about every county in Wisconsin as well. It’s good news for you though since, with such a low sales tax, you’ll only pay $55 in taxes for every $1,000 you spend.
How much do I need to earn to live in Madison?
The affordability of living in Madison depends a lot on income. You need to make enough to afford your expenses, the biggest of which is housing. Experts suggest you commit 30 percent of your annual income to rent, which in Madison, means you’d need to earn $54,480 to afford an average one-bedroom apartment.
This may seem like a lot, but the median household income in Madison is $67,565. You’re in good shape already.
To be totally sure though, that rent, and all the other cost of living in Madison expenses, fit your budget, use our rent calculator to get more exact numbers.
Free things to do in Madison
Of course, if being budget-conscious is important to you, one easy way to save money in Madison is to enjoy all the activities that are already free. With this plan, you could visit:
- University of Wisconsin – Madison Arboretum — with free, guided nature walks, adult education programs and family activities, you can get a lot out of the 1,200+ acres of greenery
- Olbrich Botanical Gardens — walk through 16 acres of landscapes and Midwest-hardy plants before stepping into the indoor tropical conservatory
- Wisconsin State Capitol — take a tour of the capitol building, the only one in the entire country with a granite dome, and see how local government happens
- Madison Museum of Contemporary Art — explore exhibits and collections that preserve modern and contemporary art
- Henry Vilas Zoo — one of the only free zoos in the country, see over 650 animals from almost every continent as you explore a rainforest, the high plains, the prairie and more
In addition to all the free museums and activities across the city, Madison also provides a lot of lakes to enjoy. While you will have to pay to rent recreational equipment if you don’t have your own, hiking and swimming never cost a thing. The Madison Chain of Lakes includes:
- Lake Mendota
- Lake Monona
- Lake Waubesa
- Lake Wingra
- Lake Kegonsa
The largest lake, Lake Mendota, has 26 miles of shoreline and is the best place to catch fish. Lake Monona is ideal for water activities, while Lake Waubesa is a favorite for relaxing on the beach. Lake Wingra is almost surrounded by woods, while farmland encloses Lake Kegonsa. Each lake gives you a different experience, lets you spend time outdoors and is budget-friendly. What more could you want?
Living in Madison
For a city where you can get your fill of cheese (and beer) while accessing so many lakes and forests, Madison is the perfect Midwest choice. Living here is not only right on that affordable line, but it’s a city full of activities, amenities and free fun.
Will Madison fit into your lifestyle and ideal cost of living? There’s only one way to find out, so grab your calculator.
The Cost of Living Index comes from coli.org.The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of October 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com