Theory Madison, a new student living complex, has started construction and is projected to be open by summer 2026, according to Mortenson.
The developers have the goal of helping the ongoing housing crisis, specifically for University of Wisconsin students.
Madison struggles to meet the demand for affordable housing, according to data from the 2024 Report of the Housing Strategy Committee on Housing Supply and Affordability.
UW Professor of Urban Planning Kurt Paulsen said that the net absorption of apartments within two miles of the campus was over 100%.
“[There’s] an incredibly strong demand to live near campus and downtown and that comes from both an expanded student population and the fact that Madison is a significant hub for young people to come here for jobs in tech,” Paulsen said.
As the housing demand increases, so does the demand for taller buildings like the 12-story tall Theory Madison.
According to Paulsen, Madison’s unique position on an isthmus makes increasing the number of high-rise apartments to keep students near campus more critical.
Paulsen said that, with the demand for housing in Madison outweighing housing availability, newer student living complexes can help relieve the price pressure on rent created by the high demand.
“If there’s a shortage of housing, then it becomes a game of musical chairs and the people who cannot afford, or have the lowest income, kind of get squeezed out,” Paulsen said. “So even though it sounds counterintuitive, by building new units that absorb some of that demand, you reduce the pressure on the rental market.”
The project is focused on mixed-income housing to address the demand for affordable and market-rate housing for UW students, according to Theory Madison’s website.
Paulsen believes that this student-focused complex would free up housing in other apartment buildings for workers.
“By having both students and young tech workers looking at the same sort of places … one advantage of student-focused housing is it takes students out of the housing that could then go to workers,” Paulsen said.
The Mortenson Company is building Theory Madison where the old State Street campus garage originally was, according to the official project site.
