Condos and Townhomes and Duplexes, Oh My!

The Bright Spot for Budget-Conscious Buyers and New Investors

If you've been feeling priced out of the Dane County market, here's something worth paying attention to: while single-family home inventory has actually gotten a bit tighter this year, the condo, townhome, and duplex market is quietly heading in the other direction. That matters a lot if you're a first-time buyer or working with a stricter budget.

The numbers don't lie.

Condo inventories in Dane County grew 40.8% year-over-year as of early April 2026 (WisBusiness). That's a dramatic contrast to single-family homes, which are actually down 3.6% from last year. And this isn't a sudden spike; it's been trending this way for a while. Madison-area condo supply has been steadily growing over the last three years (Madison Real Estate), creating a meaningfully different buying experience than the white-knuckled competition you'll find in the single-family market.

Why is condo supply growing?

A few forces are at play here, and they're worth understanding.

The first is new construction. A significant share of the added condo inventory in Dane County has been new construction. At one recent point, about 40% of condos listed on the market were newly-built homes. Developers have responded to growing demand by building more attached or shared-wall housing, particularly in and around Madison. (WisBusiness) 

The second is demographics. The oldest of the baby boomers are turning 80 in 2026, and the aging of this generation is increasing pressure on older homeowners to transition out of single-family homes and often into something smaller, lower-maintenance, and easier to manage (Wisbank). That means more demand for condos and townhomes coming to the market from downsizers over the next several years.

The third is simply that the condo market fell victim to the pandemic frenzy and has been recalibrating since. As condo inventory has grown, the number of competing offers has fallen back to pre-pandemic levels, giving buyers more selection and more time to view properties and negotiate. (Madison Real Estate)

That's a stark change from the Wild West bidding-war environment that defined the market just a few years ago.

So what does this actually mean for buyers?

Put bluntly: you have more leverage in the condo and townhome market right now than you do almost anywhere else in Dane County.

The price difference is also significant. The median condo price in Dane County was around $300,000–$310,000 in early 2026 (Madison Real Estate), well below the county-wide single-family median of $455,000. That gap can be the difference between qualifying for a mortgage and a comfortable down-payment today or waiting to save up for another two or three years while prices continue to climb.

There's also a lifestyle case to be made, especially for first-time buyers. Condos and townhomes typically mean no yard maintenance (no snow plowing!) and shared costs for things like roofing and exterior upkeep. These are the kind of expenses and time commitments that can catch those making the switch from renting to owning off guard. For someone taking the leap into their first place, that predictability has real value.

And then there's the duplex: the most underrated option in the bunch.
A duplex is simply a building with two separate living units side by side or stacked on top of each other. What makes it interesting for a first-time buyer is a strategy sometimes called "house hacking": you live in one unit and rent the other one out. The rent you collect can offset (or even fully pay) your monthly mortgage payment and other housing costs, making homeownership more manageable in a high-cost market. (CrossCountry Mortgage)

On the financing side, duplexes are more accessible than many buyers realize. FHA loans allow buyers to purchase a property with up to four units with a lower down payment, as long as they live in one of the units, and because you're an owner-occupant, these loans often come with better terms than a traditional investment property loan. It's a win-win for those looking to get into investment properties in a lower-risk scenario. CrossCountry Mortgage

It's one of the few ways to get into real estate in Dane County where the property itself helps pay for your ownership of it. In some cases, lenders can even count the projected rental income from the second unit when determining how much you qualify to borrow, which can meaningfully expand your budget. (Source: CrossCountry Mortgage — What Is House Hacking?)

All of this being said, condos aren't the right fit for everyone: HOA fees, association rules, small outdoor space, and shared walls are real considerations. But for buyers who want to build equity in a competitive market without fighting over every single-family listing before they even have a chance to tour, they deserve a serious look.

Curious whether these options might be right for your situation? The Holt Real Estate Team can walk you through what's available in your target neighborhoods and price range. Reach out anytime!