Madison, IN Housing Market
AI-powered market intelligence for the Madison, IN metro area.
PropertyIQ Scores
Madison, IN Market Analysis
Market Overview
Madison, IN has a PropertyIQ Score of 33 out of 100, placing it in a weak position on the 100-point scale. The score’s top drivers point to mixed but mostly cooling conditions: home value momentum over 12 months is positive at 8.35%, but home value momentum over 3 months is negative at -1.95%. Median days on market is 59 days, and 22.7% of listings have had a price cut. Together, these indicators suggest a market where earlier price strength has faded and sellers are adjusting to slower buyer demand.
Compared with state benchmarks, Madison’s median home value is $240,427, which is about $20,381 below the state average of $260,808. Its rent index is $1,200, which is $180 above the state average of $1,020. The median household income is $59,987, about $10,064 below the state average of $70,051. The unemployment rate matches the state average at 3.3%. Homes for sale total 120. The year-over-year home value change is -$4, essentially flat. Population growth data is not available, so population-driven demand cannot be evaluated.
These figures describe a market with lower home prices than the state norm but higher rents and lower local incomes. That mix can create affordability tension: homes are less expensive than the state average, but buying power is also constrained by lower household income, while rents sit above the state benchmark.
Key Trends
The first trend is cooling price momentum. The 12-month home value momentum of 8.35% is positive, but the 3-month home value momentum of -1.95% and the year-over-year change of -$4 indicate that recent price movement has stalled or slightly reversed. The earlier 12-month gain is not carrying into current conditions.
Second, inventory and time on market point to a slower sales environment. There are 120 homes for sale, and the median days on market is 59 days. The share of listings with a price cut is 22.7%, meaning nearly one in four sellers has reduced the asking price to attract buyers. That level of price cutting reinforces the cooling trend shown in the momentum data.
Third, rents are high relative to the state benchmark. Madison’s rent index of $1,200 exceeds the state average of $1,020 by $180. At the same time, the median home value of $240,427 is below the state average of $260,808. This divergence may signal stronger relative rental demand or limited rental supply, but the data alone does not explain the cause.
Fourth, affordability is constrained by income. The median household income of $59,987 is below the state average of $70,051. Even though home values are lower than the state benchmark, the local income gap may limit buying power and keep pressure on both purchase affordability and rent burden.
Who Is This Market For
Madison’s profile may suit first-time buyers looking for a lower purchase price than the state average. The median home value of $240,427 is below the state average of $260,808, and the year-over-year change of -$4 suggests prices are not rising quickly. However, the lower median household income of $59,987 and a rent index of $1,200 mean buyers should evaluate monthly payment affordability carefully.
The market may also appeal to rental-focused investors, given the rent index of $1,200 compared with the state average of $1,020 and a median home value below the state average. That spread can look attractive on paper, but the PropertyIQ Score of 33, the 22.7% price-cut share, and 59 days on market signal that near-term appreciation may be limited. Move-up buyers may find less momentum here because recent price movement is flat to negative and the market is not showing strong competitive pressure.
Outlook
The near-term outlook for Madison is cautious. The 3-month home value momentum of -1.95%, the year-over-year change of -$4, the median days on market of 59, and the 22.7% share of listings with a price cut all point to a soft or flattening price environment. The 12-month home value momentum of 8.35% shows there was prior strength, but current indicators suggest that strength has faded. The rent index remains above the state average, which could support rental demand, but the missing population growth data and lower median household income limit confidence in a rapid rebound. Without additional demand-side evidence, the data supports a period of flat to slightly downward pressure on prices and continued buyer-friendly negotiating conditions.
AI-generated analysis based on current market data. Last updated August 19, 2026.
Get Madison, IN market updates
Choose your role for tailored insights.
Madison, IN market data
Madison, IN Housing Market Overview
Madison, IN's median home value is $240K, up 8.4% over the past year. Homes here sell in a median 59 days. Its PropertyIQ Score of 33 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
Understanding the Madison, IN housing market requires looking beyond headline price figures. The PropertyIQ Score reads both sides of market strength: Zillow price momentum across 3- and 12-month windows, and Realtor.com flow signals — days on market and the share of listings with price cuts. Together they predict how this IN metro is set to perform relative to the rest of its state.
Midwestern housing markets are characterized by affordability and economic diversification. From manufacturing hubs undergoing tech-sector transitions to university towns with stable demand, the region offers value-oriented opportunities with lower entry costs than coastal markets. Within the Midwest, Madison, IN's PropertyIQ Score of 33 runs below the Midwest norm.
For the Madison, IN market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been positive, with home values up 8.4% over the past year.
View Madison, IN's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
Counties in the Madison, IN metro area
Top markets in IN
Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Madison, IN a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Madison, IN currently scores 33, a weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $240K, up 8.4% over the past year. So whether Madison, IN is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Madison, IN?
Madison, IN's PropertyIQ Score is 33, indicating weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 33 places Madison, IN below its state benchmark.
Are home prices in Madison, IN rising or falling?
Home prices in Madison, IN are rising. Over the past year, the median home value increased 8.4%, reaching $240K. Over the latest three months, values slipped 1.9%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Madison, IN's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Madison, IN?
In Madison, IN, homes sell in a median of 59 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 23% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Madison, IN market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.