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HeyBub[_3_]

wrote:
I am going to install a ceiling fan with a light kit in the master
bedroom. The junction box in the ceiling has a 2-conductor wire (plug
ground). I replaced this with a 14-3 wire because I want the ceiling
fan and the light on the fan to have their own seperate power. I wired
in the new switch and now one switch provides power to the black wire
and the new switch provides power to the red wire.

Now before I installed the fan, I decided to measure the voltage on
the wires. Flipping the switch to ON causes the appropriate wire to
measure 122 volts from ground (and neutral). However, If one switch is
OFF, and the other is ON the power wire connected to OFF switch
measures 29 volts.

I expected this to measure closer to zero.

Your expectations are in error.

If I do
put a load on this, it will go to zero. Is this fine/normal?

Yes.

What is
causing this, induction?

Alternating current. The application of current creates a magnetic field
around the conductor. The changes in this magnetic field induce a current in
surrounding conductors. This phenomena is called "induction." Wave a strong
magnet over your voltmeter test leads and see the same thing.

By the way, the wires that I am measuring are
way longer than they need to be. I will cut them at the appropriate
length when I am satisfied everything is wired correctly.

Leave as much spare length as you reasonably can. Future changes.