Iowas baby boomers (born 1946-1964) made significant housing decisions between 2018-2023 that shaped local real estate markets.
Urban, Suburban, or Rural?
Where Iowas Boomers Are Moving (or Not)
Staying Put vs.
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Downsizing
A significant share of Iowas baby boomers are choosing to age in place rather than relocate.
Downsizing Patterns
When Iowa boomers do move, downsizing is a common theme.
Urban vs.
Rural Preferences
Iowas boomers exhibit mixed migration patterns when it comes to city versus country life.
This leads some rural Iowa boomers to move toward regional hubs or suburbs.
Iowas affordability and open spaces can entice retirees to stay rural.
Regional Highlights Des Moines vs. Boomers who do live in Des Moines are often staying in longtime homes in established neighborhoods.
These cities offer hospitals and conveniences that nearby rural residents might eventually seek.
Economic Factors Affordability and Taxes
Financial considerations are paramount.
That said, property taxes have been a notable concern.
For the average Iowa homeowner, taxes account for roughly 23% of monthly housing costs.
Aside from taxes, maintenance costs on large, aging homes play a role too.
Older homeowners often find upkeep expensive or physically difficult, pushing them toward smaller homes or rentals.
Some Iowa boomers do make this move or become snowbirds splitting time between Iowa and a Sunbelt state.
Health and Family Reasons
Health is a major driver of boomer moves.
Additionally, family ties strongly motivate moves.
Conversely, those with deep roots and family still in Iowa often stay for that very reason.
Theres rising demand in Iowa for homes with senior-friendly features and for senior living communities.
The silver tsunami of boomers has led to more independent living and assisted living units being built in Iowa.
Some who initially resist moving later transition into these as health needs require.
The 30-year fixed mortgage rate jumped from around 3% in 2020 to 67% by 20222023.
Nationwide, all-cash home purchases hit their highest level since 2014, and boomers led the charge.
As a result, a notable share of Iowa home sales in 20222023 were cash transactions.
Now, boomers are leveraging their accumulated housing wealth directly.
Home Equity Utilization
Iowas boomers have been judicious with home equity.
), home equity lines of credit (HELOCs) offered low-interest funding during the late 2010s.
However, given Iowas conservative financial culture, many preferred to leave equity untapped unless necessary.
This growing dominance of boomer homeowners was a trend that defined 20082018.
By the mid-2010s, economic recovery and rising home equity opened a window for some delayed moves.
We started to see more downsizing around 20152018 as home prices recovered and boomers felt more financially secure.
Those who retired in that span often did moderate downsizes or moved to warmer climates if they could.
Refinancing was common to lower payments, but cash-buying was less common.
By 2020s, boomers became notably more conservative with debt, preferring to use cash/equity.
Eastern Iowa (Cedar Rapids/Iowa City/Dubuque)
Eastern Iowa has a sizable boomer population aging in place.
The city and its suburbs offer many ranch-style homes that appeal to retirees.
Dubuque has actively marketed itself as a retirement-friendly city on the Mississippi, combining scenic beauty with low costs.
Yet many boomers accept a slightly higher tax if it means being closer to hospitals or family.
Rural Iowa
Rural areas present a mixed story.
Some retirees remain on farms or acreages well into old age, valuing their independence and open space.
The viability of rural living for seniors depends on access to basics.
Community initiatives like local volunteer driver programs (to take seniors to appointments) have also sprung up.
