What is the Real Cost of Living in Madison?

Joe Piscitelli Group

Named in honor of former president James Madison and known for its stunning beaches, Madison, Conn., in New Haven County, is considered one of the nation’s best places to live. Madison residents experience over six miles of beaches across the Long Island Sound, most notably Hammonasset Beach State Park, where the beach is two miles long.

With over 100 acres of parks and wide open spaces, luxury waterfront properties, and a sophisticated small-town charm, the community that makes up Madison provides residents and visitors with an enchanting oasis. Families love the public school system, which can help offset the area’s relatively high cost of living. With stunning homes, breathtaking views, and a premium downtown area, Madison more than justifies its price.

Let’s further investigate the cost of living in Madison and the amenities that make it worthwhile.

Buying a home

As of July 2023, the median home price for Madison was about $780,000 — well above the median national price for a home. The higher cost can easily be attributed to more upscale homes for sale in Madison. Confronted with a high entry price, you might be inclined to think that the cost of living in Madison is more than it's worth.

However, the cost of housing in Madison is significantly less than you could expect to pay in New York City. Moreover, Madison homes have appreciated about 43% over the past five years, whereas New York City real estate has appreciated 28%. It’s easy to see why so many New Yorkers have crossed into Connecticut in the last few years.

Luxury housing in Madison usually has high square footage, which justifies more expensive home prices. As of July 2023, there were six homes publicly listed in Madison for over $2 million, and each had over 4,000 square feet. At the same time, the 20 homes listed for $1 million to $1.5 million averaged 3,500 square feet. And if a seaside location is your main priority, you can usually find several Madison waterfront homes for sale.


The overwhelming majority of Madison residents own their homes. If you’re interested in renting property in Madison, you can expect to pay significantly more than the national average.

Regarding short-term rentals, nearly all the Madison properties listed on Airbnb are close to Long Island Sound. The Sound is a major draw for tourists, and most travelers want to stay in a property with a view of the water. Still, you usually don’t get a touristy feel from Madison’s downtown and beach areas.


Madison residents spend a median of $292 a month on electricity. Though that figure exceeds the national average, it is proportional to Madison’s relatively large home sizes. If you moved to Madison and installed a solar system, your investment would break even in about nine years.


In Madison, residents can expect to pay about 10% more on food than the national average. The discrepancy is because Madison has many upscale restaurants, like Bar Bouchee and Cafe Allegre. The average single adult in Connecticut pays about $3,500 annually for groceries, which aligns with grocery prices in Madison.


In June of 2023, the average gas price in Connecticut was $3.64 per gallon, which is way down from a year ago when the gas prices approached $5 per gallon. In Madison, residents can access a CTtransit bus on weekdays. You can also ride the Shoreline East railroad service, whose monthly ticket averages about $114, depending on your final destination.

Average salary

On average, Madison residents take home over $100,000 a year, significantly more than the average salary across the U.S. This higher-than-average income allows Madison's 17,742 current residents to enjoy the perks of living in this semi-rural suburb of New Haven without breaking the bank because of their higher cost of living.

Other Costs

Health insurance

No matter where you are in the U.S., chances are you've struggled with the fact that health insurance premiums only keep increasing. Those in Madison are in the same boat. Still, when compared to the national average, Madison's average health insurance premium is cheaper, and compared to New York premiums, Madison residents save nearly $100.

Daycare costs

A 2022 survey of parents found that infant care costs families about 10% of their family income.
Since Madison residents earn about $100,000 a year, they can expect full-time care to cost about $1,000 a month (or about $12,000 a year).

Making the move

Though the cost of living is higher in Madison than the national average, those who move there find the benefits far outweigh the increased cost. Whether you enjoy days on the beach, afternoons in the park, scenic drives, or want to appreciate the long, rich history behind the town, Madison offers a little bit of everything for everyone.

Joe Piscitelli has been immersed in real estate for his entire adult life. Specializing in upscale waterfront homes, Joe will help you make Madison your home. With numerous accolades to his name, Joe Piscitelli brings a steadfast commitment to ethics, hard work, and 40 years of residential experience to ensure your Madison real estate journey goes as smoothly as possible. Contact Joe today.

*Header photo courtesy of Shutterstock


Selecting a real estate agent is the most important first step when buying or selling a home. Joe Piscitelli will market your property using sound planning, professional ethics and be available to you 24 hours a day to make sure the entire process goes as smooth and uneventful as possible.

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