Iowa City, IA Housing Market
AI-powered market intelligence for the Iowa City, IA metro area.
PropertyIQ Scores
Iowa City, IA Market Analysis
Market Overview
Iowa City’s housing market earns a PropertyIQ Score of 72 out of 100, indicating a moderately strong market. The score is shaped by several inputs: 12-month home value momentum of 6.52%, 3-month home value momentum of -0.78%, median days on market of 63 days, and an 11.3% share of listings with a price cut. Compared with state benchmarks, Iowa City is more expensive. The median home value is $302,216, well above the Iowa state average of $239,547. The rent index is $1,395, compared with $949 statewide. Median household income is $74,142, only slightly above the state average of $73,147. The unemployment rate is 2.4%, lower than the state average of 3.2%. These figures point to a local economy that is stronger than the state norm, but housing costs are elevated relative to incomes.
The market is not overheated. The negative 3-month home value momentum of -0.78% and median days on market of 63 days suggest a cooling or balancing trend. There are 639 homes for sale, and 11.3% of listings have had a price cut. Those conditions give buyers more room to compare and negotiate than in a tight seller’s market. Population growth data is not available in the provided metrics, so demographic-driven demand cannot be assessed directly.
Key Trends
The first trend is cooling price momentum. The 12-month home value momentum is 6.52%, which shows appreciation over the past year. However, the 3-month momentum is -0.78%, meaning recent price movement has turned slightly negative. The provided home value year-over-year dollar change is $8, a modest figure relative to the median home value of $302,216. Taken together, these numbers indicate that the upward pressure on home values has softened.
A second trend is above-state housing costs. The median home value in Iowa City is $302,216, while the state average is $239,547. The rent index of $1,395
AI-generated analysis based on current market data. Last updated September 25, 2026.
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Iowa City, IA market data
Iowa City, IA Housing Market Overview
Iowa City, IA's median home value is $302K, up 6.5% over the past year. Homes here sell in a median 63 days. Its PropertyIQ Score of 72 sits well above the state average of 50, marking a market positioned to outperform its state over the next three years.
The Iowa City, IA metro area is one of 900+ US metropolitan markets that PropertyIQ scores each month. A single PropertyIQ Score blends Zillow price momentum with Realtor.com market-flow signals to estimate 3-year excess appreciation versus the market's state — showing not just where prices stand today, but how the market is positioned relative to its peers.
Midwestern housing markets are characterized by affordability and economic diversification. From manufacturing hubs undergoing tech-sector transitions to university towns with stable demand, the region offers value-oriented opportunities with lower entry costs than coastal markets. Within the Midwest, Iowa City, IA's PropertyIQ Score of 72 ranks among the Midwest's stronger demand signals.
The PropertyIQ Score for the Iowa City, IA market is built from four inputs: Zillow home-value momentum over twelve months, Zillow home-value momentum over three months, the median days listings spend on the market (Realtor.com), and the share of listings with a price cut (Realtor.com). The score runs on a 1 to 99 scale computed across all metro markets nationally and calibrated so 50 equals the state average — a score above 50 means this market is positioned to outperform its state, and a score below 50 means it is set to lag. Momentum here has been positive, with home values up 6.5% over the past year.
Use PropertyIQ's interactive analytics to compare Iowa City, IA against any other US metro on its PropertyIQ Score and underlying metrics. Generate a free AI market report, explore historical trends on the graphs page, or see how this market ranks on the scores dashboard.
Counties in the Iowa City, IA metro area
ZIP codes in the Iowa City, IA metro area
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Iowa City, IA a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Iowa City, IA currently scores 72, a rising-momentum reading that leaves it positioned to outperform its state over the next three years. For buyers, strengthening demand usually means rising competition and firmer prices, so waiting can cost you negotiating room. Backing that up, the median home value here is $302K, up 6.5% over the past year. So whether Iowa City, IA is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Iowa City, IA?
Iowa City, IA's PropertyIQ Score is 72, indicating rising momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 72 places Iowa City, IA above its state benchmark.
Are home prices in Iowa City, IA rising or falling?
Home prices in Iowa City, IA are rising. Over the past year, the median home value increased 6.5%, reaching $302K. Over the latest three months, values slipped 0.8%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Iowa City, IA's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Iowa City, IA?
In Iowa City, IA, homes sell in a median of 63 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 11% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Iowa City, IA market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.