Home Values in Iowa City, Iowa — 2026 Market Report
Updated March 2026 | Seller's Market | +4.9% YoY
The median home value in Iowa City, Iowa is $275,000 as of March 2026, which is below the national median of $400,000. Home values in Iowa City have increased by 4.9% over the past year and 27% over the last five years. With a population of 74,828 and a median household income of $48,250, the price-to-income ratio stands at 5.7x, making Iowa City affordable for the average household.
Iowa City Housing Market Conditions
| Metric | Iowa City | National Avg |
|---|---|---|
| Median Home Value | $275,000 | $400,000 |
| YoY Appreciation | +4.9% | +3.8% |
| 5-Year Appreciation | +27% | +22.4% |
| Price per Sq Ft | $72 | $222 |
| Days on Market | 64 days | 45 days |
| Months of Supply | 2.6 | 3.5 |
| List-to-Sale Ratio | 96.8% | 98.5% |
| Monthly Homes Sold | 42 | — |
| Foreclosure Rate | 0.29% | 0.3% |
Home Value Trends in Iowa City
A homeowner who purchased at the median price of $216,535 five years ago in Iowa City would have gained approximately $58,465 in equity, representing a 27% return on investment. Over the past year alone, the typical homeowner gained $12,846 in home equity.
Affordability in Iowa City, IA
With a median household income of $48,250 and a median home price of $275,000, the price-to-income ratio in Iowa City is 5.7x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $2,167 compared to estimated monthly ownership costs of $1,667 gives a rent-vs-buy ratio of 0.77. In Iowa City, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Iowa City
The effective property tax rate in Iowa is 1.57%. On a home valued at $275,000, the estimated annual property tax bill is $4,318, or approximately $360/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Iowa City is 95.5 (100 = national average), indicating living costs are near the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Iowa City, IA?
The median home value in Iowa City, Iowa is $275,000 as of March 2026. Home values have changed +4.9% over the past year, with a 5-year appreciation of 27%.
Is Iowa City a buyer's or seller's market?
Iowa City is currently a seller's market with 2.6 months of housing supply. Homes spend an average of 64 days on market, and the list-to-sale price ratio is 96.8%. Low inventory gives sellers an advantage.
Are home values going up in Iowa City?
Yes, home values in Iowa City have increased by 4.9% over the past year. The 5-year appreciation rate is 27%, meaning a home worth $216,535 five years ago is now worth $275,000.
Is it better to rent or buy in Iowa City?
The average monthly rent in Iowa City is $2,167, while estimated monthly homeownership costs are approximately $1,667. The price-to-rent ratio is 10.6. Based on current conditions, buying may be more cost-effective than renting in this market.
Home Values in Other Iowa Cities
Related Resources
Disclaimer: Home value data for Iowa City, Iowa is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.