Real Estate Investment in Iowa

Why Invest in Iowa?

The aftershock of the 2008 financial and real estate meltdown may have caused grief for many investors, but Iowa has managed to stay afloat and its real estate market continues to flourish.

The stable real estate market in the Hawkeye state can be accredited to a diversified economy of advanced manufacturing, processing, information technology, green energy production, biotechnology, and financial services. But it goes much deeper than this, simply because the state has so much to offer. From top rankings as one of the best states to raise a family to some of the best-rated schools and highest graduation rates in the country, Iowa has become an ideal place for people who want to raise a family. The state is also home to a variety of different industries, as well as Fortune 500 companies including Casey’s General Stores and Principal Financial Group.

In this light, Iowa promises excellent resources for career growth, as well as starting new business ventures, which are top characteristics that prospective homebuyers look for in a real estate market. And while the real estate market is strong, houses are still quite affordable and priced competitively. From luxury apartments to townhomes, country homes to farms, recreational land to hunting property, this market offers anything an investor could ever want.

 

Investment Considerations for Iowa Real Estate

  • Rising Home Values-The median home value of a house in the Iowa real estate market was approximately $124,000 in 2016. This was a 2.4% increase over 2015. The value increased by roughly 3.4% in 2017 and this trend is expected to continue through 2018.
  • Increasing Housing Demand in Rural Iowa-Bottom line is that there’s just not enough housing outside of Iowa’s flourishing metropolitan areas. Whether it’s new construction, owner-occupied housing, multi-unit rentals, or rehabs of existing homes, the demand is so rife that some Iowa communities are offering innovative financing and incentives for both new homes and renovations.
  • Increasing Housing Demand in Rural Iowa-Bottom line is that there’s just not enough housing outside of Iowa’s flourishing metropolitan areas. Whether it’s new construction, owner-occupied housing, multi-unit rentals, or rehabs of existing homes, the demand is so rife that some Iowa communities are offering innovative financing and incentives for both new homes and renovations.
  • Top Retirement Destination-Iowa offers rich cultural attractions, educational opportunities and lots of outdoor recreation for seniors. Evaluated by relevant metrics such as access to public transportation, general tax-friendliness, and family and general physicians per capita, Iowa tallied a total score of 62.46, ranking 9th in health care, 11th in quality of life and 26th in affordability. In light of this, the state ranks as the fourth best retirement destination, attracting a huge number of senior homebuyers on an annual basis.
  • Weather Disasters-The state of Iowa is prone to floods, many of which have caused agricultural and economic losses worth billions of dollars over the years. Besides direct damage to fields and roadways, floods have a cascading effect that often includes a decrease in property values in the affected areas.

What are the Best Markets to Invest in Iowa?

Des Moines, the capital of Iowa, remains a top destination for Iowa real estate investors, with home prices and appreciation rates showing significant improvements between 2016 and 2018. Other promising real estate markets include Davenport, Orange City, Waukee, North Liberty, Johnston, and Ankeny.

 

Getting Started in Real Estate Investing?  HomeUnion® Can Help

HomeUnion® Investment MapHomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Iowa; and across the United States and calculate home values INVESTimate® for every property in Iowa. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.

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