Madison, IN Housing Market

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.