Iowa City, IA—52240
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Iowa City, IA
As of Oct '25, the median home price in Iowa City, IA is $273,000, with a year-over-year change of 4.3%. This indicates that home prices in Iowa City, IA are increasing. According to Zillow, the 1-year price projection is 0.6%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $273,000 | 4.3% |
| Single Family | $292,000 | 4.7% |
| Condos | $223,000 | 9.3% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $198,000 | 7.0% |
2 Bed | $196,000 | 5.4% |
3 Bed | $270,000 | 4.7% |
4 Bed | $352,000 | 5.7% |
| 5 Bed | $497,000 | 3.5% |
% of Housing Stock
Rental Trends — Iowa City, IA
As of July '25, Rentcast reports the average rent in Iowa City, IA is $1,320, with a year-over-year rent change of 10.0%. Per bedroom, the median rent as of July '25 in Iowa City, IA is studios: $923, 1-bedrooms: $1,120, 2-bedrooms: $1,210, 3-bedrooms: $1,500, 4-bedrooms: $1,860. The most common rental property sizes in Iowa City, IA are 2-bedroom and 1-bedroom, accounting for 31.1% and 27.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,150 | $1,320 |
| Studio Rent | $999 | $923 |
| 1 Bed Rent | $950 | $1,120 |
| 2 Bed Rent | $1,100 | $1,210 |
| 3 Bed Rent | $1,280 | $1,500 |
| 4 Bed Rent | $1,350 | $1,860 |
% of Rental Stock
Property Listings — Iowa City, IA
As of Oct '25, Realtor.com reports that the median days on market for a home in Iowa City, IA is 51. This is a decrease of -3.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 17.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $346,000 | -1.0% |
Listing Count | 150 | 21.0% |
| Listings as % of Homes | 0.5% | 21.0% |
Days on Market | 51 | -3.0% |
Demographics — Iowa City, IA
As of the latest ACS Survey released in 2023, Iowa City, IA has a population of 36,000, which has increased by 3.9% over the past 5 years. Iowa City, IA is a moderately popular place for families, as children make up 16.4% of the population. The area has a highly educated workforce, with 46.6% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 8.3% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 36,000 | 3.9% |
% Under 18 | 16.4% | 8.6% |
% Seniors | 12.2% | 7.0% |
% WFH | 8.3% | 112.8% |
% w/ College Degree | 46.6% | 3.8% |
As of the latest ACS Survey released in 2023, Iowa City, IA is a predominantly white area, with 70.6% of the population identifying as white. The white population has shrunk by 6.4% in the last 5 years. The second most common race or ethnicity in Iowa City, IA is hispanic, making up 10.6% of the population. Foreign-born residents account for 12.4% of the population in Iowa City, IA, and this percentage has decreased by 6.8% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 70.6% | -6.4% |
% Black | 9.5% | 14.5% |
% Hispanic | 10.6% | 19.1% |
% Asian | 4.9% | -3.9% |
% Foreign Born | 12.4% | -6.8% |
Mortgage and Risk — Iowa City, IA
According to HUD data as of 2023, there were 507 mortgage originations in Iowa City, IA, of which 93.0% of loans were conventional mortgages. The average loan-to-value was 54.0%, with 16.0% above 90% LTV (elevated). This implies medium mortgage risk in Iowa City, IA. Investor activity is low, as 2.0% of loans were by investors. 8.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 507 |
% Conventional Loans | 93.0% |
% Government Loans | 7.0% |
% Investor Loans | 2.0% |
% Second Loans | 3.0% |
% Cash Out Refinance | 8.0% |
Loan Activity
Rentals and Section 8 — Iowa City, IA
As of 2024, the percent of homes in Iowa City, IA under the Section 8 program is 9.4%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 2-bedroom and 3-bedroom and 4-bedroom units appear to be good home sizes to consider for Section 8 housing in Iowa City, IA, because HUD payments exceed market rent, while 1-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 762 |
Total Units Section 8 | 697 |
% Rentals under Section 8 | 9.4% |
% Occupied Section 8 | 89.4% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | -$10 | $950 | $940 |
| 2 Bedroom | $30 | $1,100 | $1,130 |
| 3 Bedroom | $300 | $1,280 | $1,580 |
| 4 Bedroom | $550 | $1,350 | $1,900 |
Affordability — Iowa City, IA
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 4.5 |
| Median Home Price | $273,000 |
| Median Household Income | $55,200 |