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(Des Moines, IA) -- Iowa continues to rank among the nation's most affordable housing markets and is on track to close its housing shortage.
A Common Sense Institute study shows Iowa ranks the 8th most affordable nationally based on monthly mortgage costs.
However, a typical purchase in Iowa now requires 42% more income than the average household earns.
Property taxes account for over 18% of the monthly total of homeownership costs but does not reflect the recent property tax reforms enacted in 2026.
Iowa issued 3,752 residential building permits in the second quarter of 2026, which shows a 3.3% decline from last year.
However, the study predicts the state remains on track to eliminate its housing shortage by the end of 2028 under current trends.