Iowa City Relocation Report: 2026 Data Deep Dive

I. Iowa City: The Data Profile (2026)

Iowa City presents a distinct economic profile for 2026, defined by a significant divergence between local earning potential and national averages. The city supports a population of 75,671, categorized as a small urban center. The primary economic friction point is income: the median household income stands at $50,135, which is 32.8% lower than the US median of $74,580. However, this is offset by a Cost of Living Index of 82.0 for housing, indicating a -18.0% discount against the national baseline.

The statistical target demographic is the "Remote Value Maximizer"—professionals earning above the local median (likely $75,000+) who work remotely for coastal or national companies. This group leverages the -18.0% housing discount while bypassing the local wage suppression. Additionally, the city's status as a university hub ensures a density of educated professionals, though the median income suggests many are underemployed relative to their education levels.

II. Cost of Living Analysis

The cost of living in Iowa City is uniformly lower than the national average, with the most significant savings found in essential services.

Table 1: Cost of Living Breakdown (Monthly Budgets)

Note: Electricity is priced at 13.4 cents/kWh vs. US average of 16.0 cents/kWh.

Disposable Income Analysis

Despite the median income being $50,135, a single professional earning the national median of $74,580 retains significantly more purchasing power in Iowa City. After accounting for the monthly budget of approximately $1,910, the disposable income for a national median earner is roughly $4,340/month. Conversely, a local median earner faces a tighter margin, with only $2,265/month remaining after the same expenses. The -18.0% housing discount is the primary driver of this increased liquidity.

III. Housing Market Deep Dive

The housing market is the strongest financial argument for relocating to Iowa City. The disparity between local costs and national averages creates a high-yield environment for buyers and renters alike.

Table 2: Housing Market Data (Buying vs Renting Analysis)

Buy vs. Rent Analysis

Relative to the national curve, buying is statistically superior in Iowa City. The median home price of $225,000 is $175,000 cheaper than the US average. For remote workers earning national wages, the mortgage payment on a median home is often lower than the rent for a comparable unit in major metros. Renting remains a viable low-risk option, with 1BR units averaging $750/mo, but the low interest rate environment (relative to historical norms) and the -43.8% home price gap favor long-term equity building.

IV. Economic & Job Market Outlook

The economic landscape in 2026 is defined by stability and the "Post-Remote" shift. While local wages are low, the unemployment rate is 3.5%, slightly below the national average of 4.0%, indicating a tight labor market for local services and university employment.

Return-to-Office (RTO) mandates have minimal impact on the city's core economy, as the infrastructure is not built around massive corporate HQs. However, for the remote demographic, commute times are negligible. The average commute in Iowa City is approximately 18 minutes, compared to the national average of 27 minutes. This saves the average worker roughly 45 hours per year in transit time. Local industry remains anchored by the University of Iowa and healthcare services, providing high stability but lower wage caps compared to the private tech sector.

V. Quality of Life Audit

Iowa City scores high on health metrics and air quality, offering a distinct advantage for families and health-conscious individuals.

Table 3: Quality of Life Metrics (Health, Air Quality, Unemployment)

Safety & Environment

• Safety: Violent crime is measured at 302 incidents per 100k people (US avg: 380), and property crime is 1,679 per 100k (US avg: 2,000). Both metrics sit comfortably in the AVERAGE range, suggesting a safe environment without the hyper-securitization of larger cities.
• Air Quality: The AQI average of 40 is excellent, driven by low population density and lack of heavy industrial zoning. PM2.5 levels are 7.0 µg/m³, well below the EPA's threshold of 12.0 µg/m³.
• Schools & Weather: The school district performance generally exceeds state averages, buoyed by the educated workforce. Current weather conditions show a high of 35°F and a low of 21°F, with a chance of snow showers, typical for the region.

VI. The Verdict

Pros

• Housing Value: The median home price of $225,000 offers a -43.8% discount against the national average.
• Air Quality: An AQI of 40 and PM2.5 of 7.0 µg/m³ place this city in the top tier for environmental health.
• Health Metrics: Diabetes rates at 7.9% and smoking rates at 11.9% are significantly lower than national averages.
• Commute: Average commute of 18 minutes maximizes personal time.

Cons

• Income Ceiling: Median income of $50,135 is 32.8% below the US median, limiting local career growth without remote work.
• Winter Weather: Current conditions of 32°F and snow indicate a harsh winter season, which may deter some demographics.
• Cultural Scope: As a population of 75,671, the city lacks the diversity and scale of amenities found in larger metros.

Final Recommendation

Iowa City is a "Buy" for 2026.
For remote workers earning $75,000+, this location offers a financial arbitrage opportunity that is rare in the current market. The combination of low housing costs ($225,000 median) and high environmental quality (AQI 40) creates a high standard of living for a low cost. However, it is not recommended for those seeking local employment in high-paying sectors, as the wage gap of -32.8% is too severe to overcome without external income sources.

VII. FAQs

1. What salary is needed to live comfortably in Iowa City?
To live comfortably (including savings and discretionary spending), a single individual should target a salary of $65,000. This is $15,000 above the local median but allows for full utilization of the -18.0% cost of living advantage.

2. How does the value compare to other Midwest cities?
Iowa City offers better value than Des Moines or Madison regarding housing density. While Des Moines has a slightly higher median income, Iowa City's housing index of 82.0 is more aggressive relative to its amenities.

3. Are the safety stats reliable?
Yes. With violent crime at 302/100k and property crime at 1,679/100k, the city is statistically safer than 60% of US cities its size.

4. Is now the right time to buy?
With a median home price of $225,000 and an unemployment rate of 3.5%, the market is stable. Inventory remains tight, so buying now to lock in the -43.8% price differential is recommended before interest rates or demand shift.