UW-Madison students face some of the most expensive rents in the Big Ten

A new study commissioned by the University of Wisconsin-Madison and the city of Madison found that UW-Madison students face some of the highest off-campus rental prices in the Big Ten Conference.

Nearly 70% of rentals near campus cost students more than $1,000 per month, more than what students consider affordable, the study found.

The study, jointly funded by the city and the university, was conducted by Chicago-based consulting firm Jones Lang LaSalle Inc. JLL determined that “affordable” housing for a UW-Madison student could be defined as housing costing about $980 per month.

The study looked at apartments within a 2.5-mile radius of the university campus. It found that older apartments are much less expensive, as are apartments farther from campus. New or renovated properties built or significantly modernized after 2000 had a monthly rental price of $1,575 per room, while properties built 25 years ago or more cost an average of $986 per month per room.

Prices also drop the further away from campus you get. Properties within a mile of the university cost an average of $1,746 per month per unit. At the same time, that figure drops to $1,452 within three miles of campus and $1,384 within five miles.

The study also found that students often choose to share a room to reduce rental costs. While the average monthly rent near campus is $1,273 per room, of the more than 4,400 students surveyed, the average self-reported monthly rent was $903. More than a quarter of students reported sharing a room, about 17% higher than at similarly sized institutions, JLL found.

Unlike many universities, living on campus in university-owned housing is the least expensive option for UW-Madison students. On average, rent for a double-occupancy unit on campus is $862, which is actually lower than the Big Ten average. But while most freshmen choose to live on campus, there is a “culture” of moving off campus among upperclassmen, the study found.

UW-Madison officials say they will use the study’s findings and JLL’s included recommendations to “guide future policy decisions and better help students find housing that best fits their needs and budget.”

Why are apartment rents so expensive near UW-Madison?

Madison is unique among most college towns in the country because downtown properties must accommodate both students and the many downtown professionals who live in the capital city. This “large pool of potential tenants” means that students compete not only with each other, but with thousands of non-students for rentals. Rentals near campus have a 98% occupancy rate.

Rising college enrollment and rapid downtown population growth have increased demand for rental housing. Between 2010 and 2023, Madison’s population within a 2.5-mile radius of the university grew at an average annual rate of 1.6 percent, according to the study. Undergraduate enrollment at UW-Madison has also increased 23 percent since 2010.

This situation has led to overcrowding in university residences, which have maintained an average occupancy rate of 104% from 2010 to 2023 by adding additional beds to existing rooms. This figure of 104% increases to 114%, without counting the COVID-19 pandemic year of 2020.

Downtown Madison’s location on an isthmus also limits the amount of land available for new apartment complexes.

Are they building new apartments near UW-Madison?

Yes, over the next three years, 1,700 new housing units are expected to be added within a 2.5-mile radius of the UW-Madison campus, the study says. Over the past decade, more than 6,000 units have been added in the same area.

JLL recommends that private developers consider adding three- to five-bedroom units with social areas to maximize space and address student interest.

The consulting firm also said the city of Madison should offer incentives such as density bonuses and tax incentives to developers who include a certain percentage of affordable housing in their projects.

He also suggested that the university explore public-private partnerships with private developers to create off-campus housing options that are easily accessible to students.