Housing

The Context

• Madison has underbuilt for it’s growing population for decades

• New home construction focuses on inefficient, suburban single family homes, which increase costs on the City via physical infrastructure maintenance and cost of service

• Laws and locals ordinances prevent “missing middle” housing adoption; e.g. townhouses, condos, small apartment buildings

The Suburban Experiment and Growth Ponzi Scheme

• Cities across the U.S. relied on single-family home developers to build outwards. Developers covered initial costs, but cities bore long-term maintenance expenses. This moved people away from job hubs, schools, and amenities, leading to increased car usage, weakened communities, and higher city costs.

• This is clear in Madison. The below map shows property taxes per acre for each parcel in Madison. Downtown (shown in purple/red) is the most productive area, with neighborhoods like Vilas and the Isthmus also generating high taxes. These areas are developmentally diverse and people- friendly, contributing to a prosperous city. In contrast, the least productive parcels are outside the city center. These large lots–connected by extensive roads–require residents to drive and demand costly maintenance from the city after developers pay initial construction costs. This development pattern strains budgets and has made many cities– including Madison–financially insolvent.

Proposed Housing Reforms

• Eliminate parking mandates and minimum lot sizes

• Simplify zoning codes and permitting processes

• Expand Transit Oriented Development to reduce congestion

• Increase by right housing options

• Encourage more productive generalized future land uses

In short: let cities grow naturally with a focus on people, not cars.

Incremental Housing and the “Missing Middle”

In Madison, 66% of residential land is restricted solely to single family homes, prohibiting duplexes, triplexes, and small apartments, as well as corner shops, restaurants, and other businesses (without city permission). This permission is often denied due to zoning laws, which limit land use. This is by design; zoning is a “dead hand” that only prevents what can be built on a piece of land.

"Missing middle" housing, which includes diverse, community-friendly options like duplexes and small apartments, fosters prosperity, growth, and wealth. These options empower homeowners with more choices and support natural city development. Current ordinances have stifled the "missing middle" housing industry, and reforms will take time to yield results due to the need for financing, supplies, land, and labor. To enable diverse housing and a thriving city, these restrictive laws must be removed, allowing for more housing options while reducing property taxes and community losses.

We need all types of housing. Experts say Madison needs 2,000 new units annually to maintain current vacancy rates and at least 3,000 new units per year for a decade to achieve healthy vacancy levels. While we're on track to meet the 2,000-unit goal, many new units are being built on the city's outskirts. To stay a great city, we need to focus on building in existing communities, which starts with allowing development in those areas.