This period spans the late 2010s stable growth into the pandemic-era housing boom and subsequent cooling.
Urban vs. Urban centers saw stronger demand and new construction.
Rural communities often faced housing shortages due to limited new building.
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Inventory and Price Patterns
Inventory and price patterns diverged between urban and rural markets.
Population Shifts
Population shifts played a role in these trends.
Price Appreciation Across Iowa
Despite these nuances, home price appreciation touched all corners of Iowa.
Both saw rising prices, though the pace was fastest in the urban/suburban counties where demand consistently outstripped supply.
First-time homebuyers struggled with rising costs and competition, especially during the 20202022 boom.
These rapid gains outpaced wage growth and made saving down payments harder for young buyers.
Inventory shortages were most acute in the starter home price range, which is typically what first-timers seek.
Declining First-Time Buyer Share
Consequently, the share of homes bought by first-timers fell over this period.
Iowa likely reflected a similar or slightly better proportion, given its lower prices and programs for first-timers.
Repeat buyers with existing home equity had a clear advantage.
Iowa followed this trend of move-up buyers leveraging equity many repeat buyers bought dream homes or upsized houses.
Iowa is traditionally a state of single-family houses whether in city neighborhoods, suburbs, or small towns.
Statewide sales data consistently show detached homes making up the bulk of transactions each year.
Condominiums and townhouses carved out a niche, particularly in urban areas.
Market Shifts During the Pandemic
During the pandemic boom, any form of housing saw increased demand.
Overall, single-family homes remained the dominant choice.
The move-up buyer segment was very active in 202021.
Homes in mid-range price tiers ($250k$400k) saw brisk sales as these upsizers moved in.
Downsizing Patterns
Downsizing was driven largely by older homeowners and empty nesters.
Iowas Baby Boomers influenced housing patterns significantly.
Relocation Trends
Relocating within Iowa or into Iowa was another trend.
Under $250k income, few households were purchasing lavish vacation properties.
Still, the vast majority of home purchases in Iowa were primary residences.
However, this flipped in 2022.
Rising rates in 2022 quickly cooled demand.
Home sales in Iowa fell 28% in July 2022 compared to a year ago as buyers pulled back.
Housing Inventory
Chronic low inventory was a hallmark of this period in Iowa.
Realtors reported very small supply against very high demand, leading to bidding wars.
For buyers, this meant limited choices and needing to decide (and bid) quickly.
Thats roughly a 35% increase in five years.
For buyers, this rapid appreciation was a double-edged sword.
made it harder to save for down payments, and higher construction costs pushed new home prices up.
In practice, however, such arrangements carry risks.
Market Activity and Sales Volume
The late 2000s saw a significant slowdown.
The 2008 housing crisis was felt in Iowa, though less severely than in many states.
Home sales in Iowa dropped in 20082010, and prices stagnated or dipped slightly.
For instance, Iowa home prices fell by around 5% from their mid-2000s peak during the recession.
The recovery began around 2012 and by 20152017 the market was relatively healthy again.
However, total sales in those years were lower than what we saw in the early 2020s boom.
In 2017, about 41,755 homes were sold in Iowa.
Compare that to 2021, when 49,157 homes sold an all-time record.
Over the whole 20082017 period, cumulative appreciation was significant but not spectacular essentially a recovery to pre-crisis trendline.
In contrast, 20182023 saw much sharper appreciation, especially during 20202022.
The median price went from ~$161k in 2018 to ~$220k+ by 2023.
That ~37% increase in five years is far above the ~1015% (est.)
increase that occurred in the five years prior (20132017).
Through the mid-2010s, first-timers were typically around 3035% of buyers in a given year.
This indicates that buying a home became relatively harder for younger, lower-income households in 20182023 compared to 20082017.
People were cautious; many who could wait on buying did so until recovery.
From 2012 onward, building resumed gradually.
By the mid-2010s, Iowa was building more homes again, but the pace was measured.
Inventory in 20152017 was actually quite balanced by many accounts.
In contrast, 20182023 saw inventory hit record lows due to a surge in demand that far outpaced construction.
New construction could not keep up with the sudden demand spike in the pandemic years.
In summary, 20082017 vs 20182023 presents a story of recovery to frenzy.
