The Cost of Living in Dane County: A 2025 Price Comparison by Neighborhood
Understanding what it really costs to live somewhere is super important, so I’ve put together this friendly neighborhood guide to the true cost of living in Dane County for 2025. Whether you’re relocating for a job, looking for more space for your growing family, or downsizing now that the kids have moved out, fully understanding how much costs can vary between neighborhoods can help you narrow down your search for the perfect home.
Let’s face it—Madison’s neighborhoods almost feel like different worlds sometimes, and your wallet will notice the difference depending on where you plant your roots!
Housing: Where Most of Your Money Goes
No surprise here—housing will be your biggest expense. But prices swing dramatically depending on which Dane County neighborhood you call home:
Downtown Madison & Near East Side: Urban Living at a Premium
What homes cost:
Downtown/Isthmus Condos: $350,000-$550,000 (those lake views don’t come cheap!)
Mansion Hill/James Madison Park: $600,000-$1.2M (historic charm with a price tag to match)
Tenney-Lapham: $450,000-$750,000 (those gorgeous renovated century homes)
Marquette/Atwood: $400,000-$650,000 (hipster heaven with coffee shops galore)
If you’re renting:
Studio apartments will run you about $1,200-$1,600/month
2-bedroom places typically go for $1,800-$2,600/month
Property taxes: Around 2.1% of your home’s value (ouch!)
The scoop: These areas remain hot in 2025 because you can walk everywhere, enjoy the lakes, and soak up Madison’s vibrant culture. New luxury buildings keep pushing prices up, but if you don’t mind some DIY projects, older properties can still be relative bargains.
Near West Side & Campus Areas: Education Comes at a Price
What homes cost:
Vilas/Greenbush: $450,000-$750,000 (zoo proximity = kid-friendly premium)
Dudgeon-Monroe: $475,000-$900,000 (Monroe Street shopping adds $$)
University Heights: $550,000-$1.2M (those gorgeous historic homes!)
Shorewood Hills: $700,000-$1.5M+ (exclusive enclave with top schools)
If you’re renting:
Studios: $1,100-$1,500/month
2-bedrooms: $1,700-$2,400/month
Property taxes: About 2.0-2.2% of your home’s value
The scoop: Being close to UW-Madison keeps these neighborhoods in high demand. In 2025, homes here often get multiple offers within days. If you love these areas, be ready to act fast and bring your best offer!
East and North Madison: Where Value Meets Convenience
What homes cost:
Eken Park: $300,000-$425,000 (the secret is getting out about this gem!)
Emerson East: $325,000-$475,000 (up-and-coming but still relatively affordable)
Maple Bluff: $600,000-$2M+ (where the Governor lives—need I say more?)
East Moreland: $350,000-$550,000 (great starter home territory)
If you’re renting:
Studios: $950-$1,300/month
2-bedrooms: $1,400-$1,800/month
Property taxes: About 1.9-2.2% (Maple Bluff residents pay for those beautiful streets)
The scoop: I love showing first-time buyers homes in Eken Park and Emerson East—you get so much more house for your money compared to the isthmus, and you’re still just a quick drive from downtown. Meanwhile, Maple Bluff remains Madison’s version of Beverly Hills.
West and Southwest Madison: Family-Friendly Finds
What homes cost:
Hill Farms: $400,000-$650,000 (mid-century modern heaven)
Midvale Heights: $375,000-$550,000 (ranches with yards kids can actually play in)
Nakoma: $500,000-$1.1M (prestigious and picturesque)
Allied Drive Area: $250,000-$350,000 (most affordable west-side option)
If you’re renting:
Studios: $900-$1,300/month
2-bedrooms: $1,300-$1,800/month
Property taxes: Around 1.9-2.1% of your home’s value
The scoop: West Madison gives you great bang for your buck if schools are a priority. The Southwest corridor has seen tons of development lately, and prices are climbing as more folks discover these neighborhoods.
Beyond Madison: The Suburbs and Small Towns
What homes cost:
Middleton: $400,000-$700,000 (“The Good Neighbor City” with prices to match)
Fitchburg: $350,000-$650,000 (close to Madison without the Madison address)
Sun Prairie: $325,000-$550,000 (growing fast with great new amenities)
Verona: $375,000-$650,000 (Epic employees keep demand high)
McFarland: $350,000-$600,000 (lake living at slightly lower prices)
Oregon: $325,000-$525,000 (small-town feel with easy Madison access)
Waunakee: $400,000-$700,000 (popular with families for the schools)
If you’re renting:
Studios: $850-$1,200/month
2-bedrooms: $1,200-$1,700/month
Property taxes: Varies from 1.7-2.0% depending on which community you choose
The scoop: These communities used to be where you’d go for significantly lower prices than Madison proper, but that gap has narrowed a lot in 2025. They still offer newer construction and more space, though, which is a huge draw for many of my clients.
It’s Not Just About Your Mortgage: Other Costs to Consider
Your monthly housing payment is just part of the true cost of living in Dane County. Here’s what else impacts your budget:
The Bills That Keep Coming: Utilities & Services
Water & Sewer: Madison city water runs about $70-100 monthly for most single-family homes
Rural Living: Got your eye on a country property? Remember that well and septic systems need maintenance ($300-700 yearly on average)
Heating & Cooling: Madison Gas & Electric rates are pretty consistent across the county, but I’ve noticed that newer, energy-efficient homes can save 15-30% on utilities
Internet: Expect to pay $50-100 monthly, with better options in the city than in some rural areas
Those Dreaded Property Taxes
One thing to know about Dane County—our property taxes are some of Wisconsin’s highest. But they do vary:
Madison: About 2.0-2.2% of your home’s value
Maple Bluff: Around 2.3-2.5% (those beautiful parks and services cost something!)
Middleton: About 1.8-2.0%
Sun Prairie: About 1.9-2.1%
Rural Dane County: Generally 1.7-1.9%
Here’s a real-world example: For a $500,000 home, you could pay $2,500+ less in annual taxes in rural Dane County compared to Maple Bluff. That’s a nice vacation every year!
Schools Matter (Even If You Don’t Have Kids)
Even if you’re not shopping for school districts, they impact home values and your cost of living:
Madison Metropolitan: Quality varies between schools, with the highest home values near top-performing elementaries like Shorewood and Van Hise
Middleton-Cross Plains: Consistently great schools that add a 5-10% premium to home prices
Waunakee: Their top ratings explain those higher price tags
Sun Prairie: Growing district with impressive new facilities
Verona: Strong schools plus being near Epic Systems means steady demand
The Fun Stuff: Lifestyle & Amenities
Different neighborhoods offer different vibes that affect both your quality of life and your spending:
Food & Dining: Downtown and Near East Side restaurants tend to be 15-20% pricier than those in outlying areas (but so delicious!)
Recreation: Living near lakes and parks might cost more upfront but gives you free recreation options
Shopping: West Towne and East Towne offer the most competitive retail prices, while those cute boutiques on Monroe Street will tempt your wallet
Entertainment: Living downtown means easier access to concerts, theaters, and Badger games (plus no parking fees or Uber costs)
VisitMadison.com always has their event calendar filled with fun things to do. I recommend checking it out!
Finding Value: Affordable Options in Dane County (Yes, They Still Exist in 2025!)
Despite rising prices, I’m still helping clients find relative bargains in these areas:
Allied Drive/Dunn’s Marsh: This area has improved tremendously, with homes still 30-40% below Madison averages
East Madison (North of Milwaukee Street): Great starter home territory with reasonable commutes
Marshall: Small-town living with dramatically lower housing costs
DeForest: Growing northern suburb where your money stretches further
Stoughton: Charming historic downtown and affordable homes just 25 minutes from Madison
Where to Invest: Neighborhoods on the Rise
If you’re thinking about long-term value, keep an eye on:
South Madison: The redevelopment initiatives here are transforming the area
Cottage Grove: New developments and better highway access are making this eastern community increasingly popular
Fitchburg (Northeast): Continued development is connecting it more seamlessly to Madison’s south side
Old Middleton Road Corridor: This area is seeing exciting revitalization
The Remote Work Revolution: Changing Where We Can Live
The pandemic permanently changed work patterns, and in 2025, this continues to impact housing choices:
Rural Properties: Previously less desirable due to commute times, they’re now in demand for those working from home
Internet Access: Has become a deal-breaker for many buyers—I always check internet options before showing rural properties
Home Office Space: Properties with good workspace now command 5-7% premiums
Let’s Find Your Perfect Dane County Neighborhood!
As you can see, the true cost of living in Dane County varies dramatically depending on which neighborhood you call home. While those lakefront properties and downtown condos will always command premium prices, there are still great values throughout the county for savvy buyers.
The market in 2025 remains competitive across all price points, but the good news is that with so many distinct neighborhoods, there’s truly something for everyone here.
I’d love to grab coffee and chat about your specific needs and budget. Together, we can find the perfect balance of location, amenities, and affordability that makes sense for your lifestyle. After all, the best neighborhood isn’t just about the price tag—it’s about finding a place that feels like home.
Give me a call or shoot me a text—I’m here to help you navigate all the options in our beautiful Dane County communities! Check out my featured listings HERE.