Household income, number of households, and population in Dane County have all grown at an average rate of 1.3 percent per year from 2010-2017. Jobs in Dane County have grown 1.7 percent per year. However, the number of housing units has only grown 1.1 percent per year. There is a real shortage of all types of housing units in Dane County. Rents have grown 2.3 percent per year on an average annualized basis.
Despite producing over 25,000 net new housing units in Dane County (2006-2017), Dane County under-produced more than 11,000 housing units relative to household growth.
Vacancies for multifamily rental units in the “core” urban area (Madison, Middleton, Monona, and Fitchburg zip codes) remain below 5 percent.
Overall owner-occupied housing prices in Dane County have tracked the growth in housing prices in the nation, region, and state.
Except for the lowest income households (those making less than 30 percent of AMI), the number of extremely-cost-burdened owner households has declined, marking a recovery from the housing and foreclosure crises of 2007/08.
For renting households making less than half of median income, the number of extremely-cost- burdened households has increased in numbers. However, when measured as the percent of these households, extreme cost-burdens have declined slightly. If the rates of cost-burden from the previous report (2006-2010) applied today, at least 1,000 more renting households would be extremely cost-burdened. Although the percentage of extremely low-income renters who are extremely cost-burdened has declined, the increase in numbers reflects overall population growth.
The City of Madison continues to have a disproportionate share of the region’s lower-income renters relative to its share of the county’s population.
One measure of the “Housing Gap” is the difference between the number of renting households with incomes below 30 percent of AMI and the number of units whose rent would be affordable to households at 30 percent of AMI income levels. According to this measure, the County’s housing gap is 10,812 affordable units.
The second measure of the “Housing Gap” is a measure of the number of lower-income households who currently pay more than half of their income in rent. Under this measure, the County’s affordable housing gap is 13,050 rental units and 3,490 ownership units. This rental number has increased from 10,285 units in 2010, a 26.9 percent increase.
There continues to be significant racial disparities in Dane County in terms of income, homeownership, and housing burdens. Even though income disparities contribute to housing disparities, African American and Hispanic households experience disproportionately higher rates of housing stress and burden compared to white households at the same income level.