F&M Bank
Updated Fri May 2, 2025
Published Under: Explore Wisconsin Home Loans Lake Mills Mortgages
Dreaming of a fresh start, custom floor plans, and a backyard that’s finally big enough for that summer BBQ? Southern Wisconsin might just be calling your name.
Whether you’re after peaceful lakeside living, a bustling small-town vibe, or a balance of both, building a home in this corner of the Midwest could be the best move you make this year.
Let’s explore six of the top spots to break ground—and how to make it all happen with a little help from your local bank.
Why Build in Southern Wisconsin?
Not ready to buy someone else’s idea of a dream home? We get it. Building your own place puts you in control—everything from the location to the layout, down to the doorknobs. And when it comes to location, Southern Wisconsin checks all the boxes:
- A cost of living that won’t blow your budget
- Beautiful seasons (yes, even winter has its charm!)
- Tight-knit communities where neighbors still wave
- Strong local economies and growing job markets
Oh, and did we mention the views? Rolling hills, charming downtowns, and lakefront sunrises are all part of the package.
1. Madison, WI: Where City Energy Meets Natural Beauty
Photo Credit: Getty
Looking for the best of both worlds? Madison blends capital-city perks with laid-back charm.
Population: 280,305
Why you’ll love it here:
- Cultural gems like the Wisconsin State Capitol and Olbrich Botanical Gardens
- Home to the University of Wisconsin-Madison – one of the 10 largest research institutions in the country!
- A foodie scene that punches way above its weight
- Bike-friendly streets, lake views, and music festivals galore
Insights: If you want walkability, vibrancy, and outdoor adventures, you’ll feel right at home here. Madison has also been recognized as an excellent city for raising a family!
Median home build cost (est.): Higher than rural towns, but still a solid investment. Madison homes tend to hold their value very well.
Schools: The Madison Metropolitan School District serves the area, with schools like Middleton High School receiving an A+ rating from Niche!
2. Cambridge, WI: Small Town Vibe, Big Lake (And Art!) Energy
Photo Credit: Destination Madison
Nestled on the shores of Lake Ripley, Cambridge is the kind of town where neighbors wave, Saturdays are for the farmer’s market, and summer days are spent on the water.
Population: 1,668
Why you’ll love it here:
- Enjoy the lake life—boat, fish, paddleboard, or just relax by the peaceful Lake Ripley shoreline
- Home to galleries, studios, and annual community events for all ages
- Attend the Midwest Fire Fest (6k+ revelers to celebrate all things forged in fire) or Main Street Memorial Day Parade (honoring fallen veterans)
Best for: Nature lovers, artists, and anyone ready to unplug from the noise and plug into community. Its small-town coziness combined with a big-city abundance of things to do makes Cambridge one of the top “100 Best Small Town Getaways” by Midwest Living Magazine.
Great schools: Cambridge School District serves approximately 915 students across four schools, including Cambridge High School, which ranks 43rd out of 431 Wisconsin public high schools!
Art-Lover Events: The Spring Pottery Tour, Midwest Fire Fest and the Earth, Wood & Fire Artist Tour are just a few ways this town celebrates creativity.
3. Waterloo, WI: Where Local Legacy Meets Global Brands
Photo Credit: YouTube
Home to both Trek Bicycle Corporation and Von Holten Pickles, Waterloo has earned a reputation for being a small town that thinks big.
Population: 3,611
Why you’ll love it here:
- Looking for job opportunities? Waterloo’s local manufacturing and innovation keep the job market strong
- Between nearby wildlife areas and scenic bike trails, you’ll never run out of places to explore
- With parades, festivals, and town events, there’s always something going on – like the annual Wiener and Kraut Day – entering its 65th year!
Best for: Young professionals, families, and builders looking for a community with deep roots and a future-forward mindset.
Fun fact: The name Waterloo was suggested by a French resident who was one of Napoleon's soldiers at the Battle of Waterloo.
Nearby perks: Close to Lake Mills, Sun Prairie, and easy commuting into Madison.
4. Cottage Grove, WI: Suburban Comfort with Room to Grow
Photo Credit: The Village of Cottage Grove
Just east of Madison, Cottage Grove offers the perfect mix of quiet neighborhood living and economic expansion.
Population: 8,854
Why you’ll love it here:
- Served by the Monona Grove School District, Cottage Grove is known for its excellent schools and academic acievement
- A new Amazon distribution center is bringing major jobs and energy to the area
- Parks, paths, and recreation for all ages!
- Join a rugby club at the Wisconsin Rugby Sports Complex—a championship level facility
Best for: Commuters, young families, and anyone who wants the convenience of Madison with the charm of suburbia.
Golf lovers unite: Cottage Grove is home to Door Creek Golf Course—an award-winning public golf course that has been Voted Best of Madison and Best of Cottage Grove for multiple years.
Safety comes first: This town scored an A from Niche in overall grading and crime and safety—a peaceful, beautiful, and safe place for individuals and families to build in.
5. Jefferson: Historic Roots with Modern Growth
Photo Credit: Jefferson County, Wisconsin
Jefferson is on the up-and-up—think unique festivals, cool coffee shops, and historic buildings—all in a scenic riverside town. And with major developments on the horizon, now’s a great time to build!
Population: 7,649
Why you’ll love it here:
- A $560 million Kikkoman expansion is bringing new opportunities and growth
- Ever been to a goat-themed festival? Jefferson’s Goat Fest is as fun and funky as it sounds
- Their motto is: “We’re going outside!” so you’ll enjoy walking trails, fishing spots, and peaceful mornings by the Rock River
Ideal for: First-time home builders, families seeking affordability, and anyone who loves a bit of small-town fun.
Celebrate German heritage: In the fall, celebrate the city’s German Heritage at Gemütlichkeit Days.
Disney movie beauty: Ever wanted to live in a Disney movie-worthy place? Jefferson’s Main Street shows off its vintage buildings and steepled churches built by German craftsmen. Two picturesque rivers flow through the middle of town – where you can float up and catch a concert, meal or even camp along the riverbank!
6. Lake Mills: Lakeside Charm with a Tight-Knit Community
Photo Credit: Eli Wedel, Wikipedia
Nestled on the eastern shores of Rock Lake, Lake Mills offers a harmonious blend of natural beauty and small-town warmth.
Population: 6,602
Why you’ll love it here:
- Enjoy boating, fishing, and swimming in the pristine waters of Rock Lake
- Explore unique shops, delightful eateries, and local breweries in the picturesque downtown square
- Engage in numerous events throughout the year, fostering a strong sense of community
Vibe check: If you’re seeking a serene lakeside setting with a vibrant community spirit, Lake Mills is calling your name. It’s safe, friendly and has both private and public schools and grade schools.
Building tip: With a median home price of approximately $440K, up 13.2% from last year, investing in Lake Mills is both a lifestyle and a smart financial decision.
All the amenities: If you’re into craft beverages—you're in luck—Lake Mills has two breweries and a winery and distillery! Enjoy live music and relax on the beach during the summer or send the kiddos to the Norman Rockwell-esque ice rink in Commons Park during the Knickerbocker Ice Festival in winter!
Financing Your Build: The Not-So-Scary Part
We know construction financing can sound overwhelming—but it doesn’t have to be. At Farmers & Merchants State Bank, we make it simple, approachable, and tailored to your needs.
Here’s what our construction loan process looks like:
- Pre-approval – So you know your budget before choosing a lot or builder
- Flexible terms – Fit your timeline and financial goals
- Interest-only payments during construction – Manageable monthly payments while you build
- Easy conversion to a traditional mortgage – No surprises down the road
We’re local. We’re personal. And we’re ready to walk you through every step.
Learn More About Construction Loans
Let’s Break Ground Together
Southern Wisconsin is full of places worth planting roots. Whether you’re drawn to lakeside serenity, lively downtowns, or countryside quiet, there’s a perfect spot waiting—and we’d love to help you build there.
Your dream home is closer than you think.
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