Builders Patch | HousingCount: Iowa affordable housing data and latest news
Iowa
Summary
Iowa state is facing challenges to housing affordability. For every 100 low-income renter households, there are 85 units available that are affordable to them. The median household income in the state is $37,573 whereas the median rent in the state is $689. Currently, the state is short over 13,147 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.
28.4% share of renter households
40.3% share of low-income households
39.6% share of rent-burdened households
Renter population data
| Households | % share |
|---|---|
| Renter households | 362,924 |
| Homeowner households | 912,969 |
| Total households | 1,275,893 |
| Households | % share |
|---|---|
| Extremely low-income (≤30% AMI) | 45,939 |
| Very low-income (31-50% AMI) | 43,356 |
| Low-income (51-80% AMI) | 57,041 |
| All low-income households (<80% AMI) | 146,336 |
Rent-burdened households
| Households | % share |
|---|---|
| Moderately rent-burdened | 72,432 |
| 30.0–34.9% | 27,044 |
| 35.0–39.9% | 18,898 |
| 40.0-49.9% | 26,490 |
| Severely rent-burdened | 71,186 |
| All rent-burdened households | 143,618 |
Affordable housing shortage
| Amount ($) | |
|---|---|
| Median household income in 2010 | 26,729 |
| Median household income in 2021 | 37,573 |
| Increase (2010–2021) | 40.6% |
| Amount ($) | |
|---|---|
| Median rent in 2010 | 489 |
| Median rent in 2021 | 689 |
| Increase (2010–2021) | 40.9% |
| Units | |
|---|---|
| Supply (current stock) | 76,148 |
| Demand (total units needed) | 89,295 |
| Shortage | 13,147 |
| Total shortage | 13,147 |
| Supply/Demand ratio | 85.3% |
Finance institutions
Iowa Finance Authority
Iowa Finance Authority
1963 Bell Avenue, Suite 200
Des Moines, IA 50315
List of loan programs
- Community-Based Housing Revolving Loan Fund
- Home and Community-Based Revolving Loan Program
- HOME Program
- Housing Tax Credit Program
- Iowa Title Guaranty
- Main Street Loan Program
- Multifamily Loan Program
- National Housing Trust Fund
- Rural Lot Purchase Program
QAP document (Qualified Allocation Plan)
The QAP is a document that states, and a few local agencies must develop in order to distribute federal Low-Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.
Download document
Housing news
Key Takeaways:
- Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.
While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.