What Is the Average Cost of Living in Iowa in 2025?

Understanding the Average Cost of Living in Iowa

To live comfortably in Iowa’s key areas such as Des Moines, Cedar Rapids, or Davenport, a middle-class household typically needs an annual income of around $58,000. This amount is moderate compared to neighboring states and reflects Iowa’s lower housing and utility costs.

Here’s how monthly living expenses usually break down:

• Housing (rent/mortgage): About 27% cheaper than the national average
• Utilities: Around 12% cheaper than average
• Groceries: Roughly 3% less expensive than the national average
• Transportation: 1% above average, mostly due to commuting
• Healthcare: About 5% lower than the national average

Overall, Iowa remains attractive for families and individuals who value cost-effective living.

Housing and Rental Market in Iowa

Iowa’s housing market is one of the most affordable in the Midwest. On average, rents are about 27% below national levels, and median home prices also sit 27% below the U.S. average.

Here’s how Iowa compares with nearby states:

• Vs. Illinois: Rents are 42% cheaper, and homes are 51% less expensive
• Vs. Minnesota: Rents are 11% cheaper, and homes are 11% less expensive
• Vs. Missouri: Rents 9% cheaper, homes 9% less expensive
• Vs. Ohio: Rents 15% cheaper, homes 15% less expensive
• Vs. Nebraska: Rents and home prices are about 7% higher

Metro areas like Des Moines offer a balanced mix of affordable urban and suburban homes. Cedar Rapids and Iowa City provide quality rental options for students and professionals.

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Utilities and Other Living Expenses in Iowa

Utility costs in Iowa are about 12% lower than the national average. Electricity is the largest component, and residents benefit from the state’s efficient energy infrastructure.

Here’s how Iowa stacks up regionally:

• Illinois: 3% lower than average, but still higher than Iowa
• Minnesota & Missouri: Slightly below average, similar to Iowa
• Ohio & Nebraska: 2–3% below average, but less competitive overall

Groceries in Iowa are about 3% cheaper than the national average. Meanwhile, transportation expenses are roughly 1% higher, mainly due to commuting distances. Healthcare costs remain about 5% below national levels, offering additional savings.

Income and Job Market Overview in Iowa

The average salary needed for middle-class living in Iowa is $58,000. That’s 10% less than Illinois and 5% less than Minnesota, giving Iowa an advantage in affordability.

Salary requirements compared to peer states:

• Illinois: 10% higher
• Minnesota: 5% higher
• Missouri: 10% lower (close to Iowa’s level)
• Ohio: 8% lower
• Nebraska: 4% lower

This balance of wages and expenses makes Iowa a great place for both workers and families seeking long-term financial stability.

Is It Worth It to Live in Iowa?

Yes, absolutely. Iowa offers strong value for cost-conscious residents. Lower housing and utility costs reduce overall living expenses, while groceries and healthcare remain competitively priced.

Although transportation costs are slightly higher, they do not significantly affect total affordability. Families also benefit from lower childcare costs, averaging $12,000 per child annually—cheaper than in Illinois or Minnesota.

Additionally, Iowa’s communities, schools, and growing economy make it a desirable state for both professionals and families.

Regional Insights and Relocation Tips

Here’s a look at Iowa’s key hubs:

• Des Moines: The capital city with a robust job market and affordable urban housing.
• Cedar Rapids: Offers both industrial and cultural opportunities.
• Iowa City: A lively university town with strong community life.

Each area has its own housing and commuting dynamics. Therefore, it’s best to use local resources and cost calculators to plan your budget accurately before relocating.

Final Thought on Average Cost of Living in Iowa

Iowa stands out as one of the most affordable states in the Midwest, especially when it comes to housing and utilities. While its cost of living is slightly above the national average, it still remains lower than in Illinois and Minnesota.

With moderate salary requirements and balanced expenses, Iowa is a smart choice for budget-conscious individuals and families alike.

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FAQs About the Average Cost of Living in Iowa