Common Sense Institute (CSI) Iowa has released a new report detailing the state of the housing market in Iowa, revealing that while Iowa remains one of the most affordable states for homeownership, challenges persist due to high property taxes and housing shortages in key areas.
Among the report’s key findings:
- Iowa ranks seventh in the nation for housing affordability based on mortgage costs alone and ninth when property taxes are included.
- On average, Iowans need to work 37 hours per month to afford a mortgage on a newly purchased home, which is 12 hours less than the national average.
- Single-family home prices in Iowa have increased by about 40% since 2020, making it increasingly difficult for first-time buyers to enter the market.
- With current permitting rates, Iowa is projected to close its housing deficit within the next five years, though shortages remain significant in areas such as Pottawattamie and Polk counties.
“Our research shows that Iowa remains one of the most affordable states for homeownership, but the market has definitely become more challenging since the pandemic, especially to first time homebuyers attempting to enter the market,” said Ben Murrey, director of policy and research at CSI Iowa. “Reducing property taxes and increasing housing supply are the two main levers we can pull at the state level to improve affordability.”
“We see firsthand the challenges Iowans face in finding affordable homes,” added Gavin Blair, CEO of the Iowa Association of Realtors. “This report reinforces why it’s crucial to keep housing within reach—not only to support first time homebuyers but to sustain vibrant, growing communities across the state. By addressing supply and reducing tax burdens, we can ensure that more families have the opportunity to own a home and build their future here in Iowa.”
