Iowa City, IA
Executive Summary
Iowa City's housing market shows average risk, ranking 122nd of 274 metros. The market recently entered Recovery. Inventory is growing moderately (-16% YoY) with stable liquidity. Early signs of stabilization — conditions may favor patient buyers.
Iowa City experienced a market correction from late 2025 through late 2025. The market is currently recovering.
Inventory is declining (-16% YoY), indicating a tight market with limited supply.
Rent growth is roughly keeping pace with price appreciation, suggesting valuations are not stretched.
Cycle Phase
Market conditions are rebuilding after a correction period
Key Dynamics
Risk is primarily driven by permit growth and migration, while affordability provides the most support.
Top Drivers
Market Signals
Inventory is declining (-16% YoY), indicating a tight market with limited supply.
Liquidity
Valuation
Factor Details
12-month HPI change — higher = overheating
YoY permit change — higher = supply pressure
Permits per 1,000 residents — higher = overbuilding risk
Mortgage payment / income — higher = more burdened
12-month employment change (risk inverted)
Net AGI migration (risk inverted)
National Context
Credit Conditions
Credit Regime
Healthy recovery. Credit is flowing normally and transactions are steady — conditions favor continued rebuilding.
Supply Pipeline
Supply Regime
Supply pipeline is building up while credit remains available. New units are accumulating in the system — watch for delivery pressure in coming quarters.
Local Signals
Metro Permit Activity
Permit Activity
ElevatedRaw signal — not the composite percentile
Relative to 2016–2019 norms for this metro
Above-normal building activity with healthy demand. Balanced expansion — the market is absorbing new supply without stress.
Employment Concentration
Employment
ConcentratedInternal Structure
County-level structural analysis.
County-level structural analysis is not available for this metro due to fewer than 3 qualifying counties.
Score History
| Month | Score |
|---|---|
| 2026-05 | 60 |
| 2025-11 | 50 |
| 2025-10 | 44 |
| 2025-08 | 44 |
| 2025-07 | 40 |
| 2025-05 | 41 |
| 2025-04 | 42 |
| 2025-03 | 38 |
| 2025-01 | 40 |
| 2024-11 | 32 |
| 2024-09 | 35 |
| 2024-07 | 40 |
| 2024-05 | 36 |
| 2024-02 | 29 |
| 2023-12 | 35 |
| 2023-10 | 39 |
| 2023-08 | 42 |
| 2023-07 | 46 |
| 2023-05 | 42 |
| 2023-04 | 40 |
| 2023-02 | 50 |
| 2023-01 | 50 |
| 2022-11 | 45 |
| 2022-10 | 42 |
| 2022-08 | 37 |
| 2022-05 | 41 |
| 2022-03 | 34 |
| 2022-02 | 34 |
| 2021-12 | 36 |
| 2021-10 | 37 |
| 2021-08 | 36 |
| 2021-06 | 40 |
| 2021-04 | 40 |
| 2021-03 | 36 |
| 2021-01 | 34 |
| 2020-10 | 34 |
| 2020-08 | 33 |
| 2020-06 | 30 |
| 2020-04 | 30 |
| 2020-03 | 34 |
| 2020-01 | 39 |
| 2019-11 | 34 |
| 2019-08 | 34 |
| 2019-07 | 36 |
| 2019-05 | 39 |
| 2019-03 | 41 |
| 2019-02 | 43 |
| 2019-01 | 43 |