Edited release
07/31/26
The Common Sense Institute’s (CSI) latest Housing Affordability Update finds Iowa continues to rank among the nation’s most affordable housing markets, supported by steady housing supply growth that has kept the state on track to close its housing shortage by the end of 2028. While affordability remains stronger than in most states, property taxes and elevated borrowing costs continue to increase the cost of home ownership.
Among the findings:
Iowa ranks:
8th most affordable nationally based on monthly mortgage costs
12th most affordable relative to resident earnings
9th most affordable when property taxes are included
The average Iowan needs to work 41 hours per month to afford a typical new mortgage payment, 13 hours fewer than the national average.
Purchasing a typical Iowa home now requires 42% more income than the average household earns, though Iowa remains more affordable than the national average.
Property taxes account for 18.4% of total monthly homeownership costs, ranking Iowa 10th highest nationally. This analysis does not yet reflect the property tax reforms enacted in May 2026.
CSI estimates Iowa’s housing deficit has narrowed to 8,102 homes in 2026 and projects the state remains on track to eliminate its housing shortage by the end of 2028 under current trends.
Iowa issued 3,752 residential building permits in Q2 2026, a 3.3% decline from a year earlier. Despite the slowdown, permitting remains sufficient to maintain the state’s current trajectory toward closing its housing shortage.