As Madison grapples with an ongoing housing crisis, a new low-income apartment development will aim to provide affordable housing in the heart of the city.
Bear Development, a Kenosha-based firm with a history of constructing income-restricted housing, has unveiled plans for a seven-story, 223-unit residential building at 501 E. Washington Ave. in Madison, northeast of the Capitol, according to the City of Madison.
Bear Development is committed to creating high-quality properties that add value to the community, according to the firm’s website.
The new development will replace the longtime headquarters of the Wisconsin Manufacturers and Commerce on Washington Ave., which will relocate to 2 Buttonwood Ct., according to In Business.
All units will be rent and income-restricted to accommodate individuals earning 50-80% of the area median income, according to In Business.
Public Information Officer for Madison’s Department of Planning, Community and Economic Development Jaymes Langrehr said Bear Development’s upcoming project will be impactful in providing affordable housing.
“Units that are rent and income-controlled make sure that folks who are making less than the median income in our area have a place where they can call home without having to devote so much of their income just to pay their rent,” Langrehr said.
The apartment development could be a lifeline for Madison residents who have struggled to find affordable housing in a city where rental prices have skyrocketed in recent years, Langrehr said.
Madison’s rent prices have climbed nearly 30% from March 2020 to March 2023, one of the highest increases in the nation, according to The Cap Times.
Madison’s increasing population and limited housing availability have put additional pressure on local residents — particularly those in lower incomes brackets, according to the City of Madison.
Bear Development’s vision for the site is aligned with efforts to meet the growing demand for affordable housing and their value to creating value in the communities where residents live, work and serve, according to Bear Development’s website.
“What we’re able to do is set up restrictions on who can live there [the new development] — so just making sure that the people who need those units the most have access to them and then that kind of leads to income limits on those units” Langrehr said.
A large amount of planning goes into each one of these affordable housing projects, Langrehr said.
Earlier this year, Mayor Satya Rhodes-Conway announced a new goal of building 15,000 new homes in the next five years, according to the City of Madison. The goal is for at least 25% of these homes to have long-term affordability at below-market rates for those making 60% of Area Median Income or less.
“If there are more units available, the market rates might become a lot easier for folks to be able to pay — it’s a basic supply and demand thing,” Langrehr said.
Madison will create a formal proposal bill and the city’s development review teams will determine if it’s consistent with the city’s Comprehensive Plan, Langrehr said.
Madison is committed to supporting the development of all types of housing, Langrehr said. He said building 15,000 homes in the coming years would help address the city’s affordable housing shortage.
University of Wisconsin junior Ellie Clark said she has struggled to find affordable housing that is a close enough distance from her classes.
“I feel like this project will have a major impact on the City of Madison and will benefit lower-income individuals by providing them with the resources they need to successfully work, live and thrive in the community,” Clark said.
Clark said the difficult search for affordable housing continues alongside the construction of luxury apartments like Hub On Campus and The James.
Many students and community members cannot afford to live in these apartments, Clark said.
“I think Bear Development’s plan to create affordable units will create a more unified Madison,” Clark said.
Langrehr said he is hopeful that the new Bear Development project will serve as a model for future projects aimed at easing the housing crisis.
Bear Development Vice President Adam Templer said in an email statement to The Badger Herald that his firm will continue with public meetings over the upcoming months to get additional feedback. If all goes well, construction will begin in late 2025 or early 2026.
