Although more expensive than other cities in the state, Iowa City's cost of living is still 9% below the national average.  Real estate is affordable; today, the median home price is $193,000.  The city is growing, and a lot of new construction is taking place on the the northern end of town (where many college professors live), but the city also has many older, quiet neighborhoods with tree-lined streets, the kind one might find in a Norman Rockwell painting. It is the type of place where $175,000 will buy a small-ish (1,100 sq. ft.), two bedroom, one bath vintage bungalow or a 1970s' ranch-style home with three large bedrooms, two baths, 2,000 sq. ft. and a large yard with mature trees.  And it is the type of place where $300,000 will buy a two-story, four bedroom, two bath, 3,000 sq. ft., renovated stunner with dormer windows, a two-story exterior brick fireplace and acreage in a wooded valley.

One of Iowa City's selling points is this selection of housing and prices, giving buyers the chance find everything from comfortable homes in the $140,000s to brick mini-mansions in the $600,000 to $800,000 range.  Condominiums are in good supply and start below $100,000, although $135,000 seems to be the median price.  For anyone with a healthy budget and a love of architecture and history, a few condos ($385,000 to $970,000) are currently for sale in a gorgeous, historic (c. 1925) Iowa City mansion.   The most expensive unit comes with 3,700 sq. ft. (the master bedroom has 1,400 sq. ft.), a three car garage, three fireplaces and a private elevator! 

For those that prefer to rent rather than purchase, apartment communities seem to be plentiful, although there are not a lot of units available at this writing primarily because Iowa City is a university town and most apartments are occupied by students.

 This is an interactive map.  Click on the arrows in the upper left hand corner to move the map to the East, West, North or South, and click on the +/- signs to zoom in and out.

Iowa City has a lot going for it, and a real estate dollar goes a long way; on the down side, however, are high property taxes.  There is a homestead exemption, but even with it, a homeowner can expect to pay roughly 1.5% of a home's value in annual property taxes.  Iowa currently taxes Social Security (although $25,000 for singles and $32,000 for married couples can be excluded), but it is phasing out its Social Security tax.  Private pensions are taxed, but $6,000 to $12,000 may be excluded.  The personal income tax rate is graduated but tops out at nearly 9%.  Iowa City's combined sales tax rate is 6% (food and prescription drugs are exempt).

Iowa City, Iowa, Continued...