Income property prices continue to rise in Dane County, while inventory remains tight. Here's our latest update on the Madison area rental property market, covering the first four months of the year.
Dane County price per unit
The price per multifamily unit through the first four months of the year was just shy of $213,000, a new record for our market. Note from the chart below that the price per unit has tripled since bottoming out in 2012.
Gross rent multiplier (GRM)
The Madison area gross rent multiplier through the month of April was 10.7, which is consistent with how the market has been trending over the last ten years. The GRM has been relatively flat over the last decade, which indicates that rents and prices have been rising at roughly the same rate.
New multifamily listings and months of supply
Income property listings continue to enter the market at a slow pace compared to most years since the year 2000. A total of 106 Dane County income properties were listed on the MLS through April, which is about one-third of the peak listing total from 20 years ago.
Low listing activity has led to persistently low supply. As of May 27th, a total of 42 Dane County multifamily listings were available for sale on the MLS (without an accepted offer). This is the equivalent of 2.2 months of supply, which is just slightly above the supply levels for single family homes and condos.
Income property sales
Low supply is limiting multifamily sales. Through the first four months of the year, a total of 70 Madison area income properties sold via the MLS, down from 76 sales a year ago.
What questions do you have about the Madison area income property market?
Reach out if you'd like to have a conversation about the market and your investing goals. We're always happy to be a resource for you and share what we know. For some tips on selling your Madison area rental property, check out this recent post.
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