Cost of living in Iowa: Affordable housing market. Low property taxes. Reasonable utility costs. Budget-friendly grocery prices. Competitive healthcare expenses. Inexpensive public transport. Affordable childcare services. Reasonable entertainment costs. Low income tax rates. Moderate insurance premiums.
Affordable housing market
Iowa faces a significant shortage of affordable housing, particularly for extremely low-income households, with a deficit of rental homes resulting in 67% of these households being severely cost-burdened. However, Iowa remains one of the most affordable states for homeownership, ranking seventh in the nation for mortgage affordability, though challenges persist due to high property taxes and localized housing shortages.
Low property taxes
Iowa does not have low property taxes; in fact, the state has a statewide average effective property tax rate of 1.50%, which is well above the national average of 0.99%, making it one of the top 10 highest in the country. For more detailed information on property taxes in Iowa, you can visit the Iowa Property Tax Calculator on SmartAsset's website.
Reasonable utility costs
In Iowa, utility costs are relatively reasonable, with the average utility bill for a single person being around $423.88 monthly, which is 2% lower than the national average. This amount includes expenses for electricity, heating, cooling, water, gas, and phone and internet bills. For more detailed information on living expenses in Iowa, the Iowa Cost of Living resource provides comprehensive insights into the economic aspects of residing in the state.
Budget-friendly grocery prices
In Iowa, grocery prices are notably budget-friendly, with average monthly grocery costs per person being approximately $347, which is 1.7 percent below the national average, thanks to the state's robust agricultural industry and local food production. For more detailed insights about the cost of living, you can explore the Cost of Living in Iowa on Rent.com, which provides a comprehensive guide to living expenses in the state, highlighting affordability in various sectors.
Competitive healthcare expenses
In Iowa, healthcare expenses are relatively high, with a cost index of 108.2, exceeding the national average. The average cost of health insurance is $6,216 per person, and healthcare costs have risen significantly, with a 270% increase between 1991 and 2020, far outpacing inflation. For further information on related expenses in Iowa, feel free to check out the insights provided by Lake Panorama Realty.
Inexpensive public transport
In Iowa, public transportation is relatively inexpensive, with a local transport ticket averaging $1.44 and a monthly ticket costing $39.7. Some areas, like Iowa City, offer unique programs such as the Fare Free Iowa City, providing free bus fares to riders. This accessibility contributes to the affordability and ease of commuting across the state, making it an attractive option for residents and visitors alike.
Affordable childcare services
In Iowa, affordable childcare is a significant challenge, with the typical annual cost of child care for an infant being around $12,000. The Child Care and Development Block Grant only reaches 14% of eligible families, leading to substantial economic losses for the state. For more detailed information on how Iowa is addressing these childcare challenges, visit the First Five Years Fund.
Reasonable entertainment costs
In Iowa, entertainment costs are reasonable, with activities such as visiting museums often costing between $3 to $10 for admission, cinema tickets averaging $11, and various free or low-cost outdoor and cultural events available across the state's affordable towns. These budget-friendly options make Iowa an attractive destination for travelers seeking to explore culture and history without breaking the bank.
Low income tax rates
Iowa has implemented significant tax relief by reducing its top income tax rate from 5.7% in 2024 to a flat rate of 3.8% starting in 2025. This change is set to save taxpayers over $1 billion over six years, positioning Iowa's income tax rate as the sixth lowest in the country. For more details on this transformative measure, visit the full article on the State Policy Network website.
Moderate insurance premiums
In Iowa, the average cost of homeowners insurance is about $1,083 per year, which is slightly under the national average. Likewise, car insurance rates are also relatively low, with state minimum coverage averaging $363 per year and full coverage averaging $1,888 per year, both below national averages. For more details on homeowners insurance in the state, you can visit the Hippo website for comprehensive insights and comparisons.