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Are you interested in Iowa’s living costs? You could be moving in or comparing, but knowing the financial aspect is key. In this guide, we will explore the various expenses in Iowa, like housing, healthcare, and transportation. Read on to learn what is the cost of living in Iowa.
But why? More people are moving to Iowa because of its scenic surroundings and leisurely life. The low living costs are also attractive for most people, even as they differ depending on location, standard of living, and other needs. It is important to know how much rent, energy bills, and travel fares will cost here.
What is the Cost of Living in Iowa?
Iowa’s cost of living is about 6% less than the national average, owing to its reasonable housing and utilities costs. Housing costs 19% less than the US average, and utilities cost 5% less, helping keep monthly costs down.
However, costs vary by city. For example, Sioux City is cheaper than Spencer. Knowing these differences helps you budget and make your move to this city.
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What Are Housing Costs in Iowa?
Housing prices in Iowa are below the national average. In 2023, the average Iowa home costs about $200,038. However, prices vary by city and region due to local demand and amenities. So, it’s important to consider specific areas when buying or renting.
Here are average home prices by city:
- Des Moines: $192,796.
- Cedar Rapids: $186,906.
- Davenport: $164,621.
- Sioux City: $170,070.
- Iowa City: $277,992.
Rent also varies by location. For instance, a two-bedroom in Adair County costs around $715. In Iowa City, it jumps to $1,036. Despite these variations, housing remains one of Iowa’s most affordable living costs. This makes Iowa a great choice for buyers and renters looking to save.
How Much Taxes do I Pay in Iowa?
Iowa has a progressive income tax. Rates start at 0.33% and go up to 8.53%—higher income means paying a higher percentage.
The state also has a 6% sales tax. Local areas can add more, making it 6% to 7%. Iowa’s income tax is higher than Missouri, Nebraska, and South Dakota, which have lower or no income taxes. However, Iowa offers tax credits and deductions for property taxes, retirement income, and childcare. So, while rates are high, these credits make taxes more manageable for many residents.
How to Manage the Cost of Living in Iowa
- Use State Benefits: Iowa offers healthcare, housing, and energy programs. Check out Medicaid, LIHEAP, and SNAP for savings. Research eligibility and apply to get support.
- Explore Housing Options: Consider smaller apartments or towns outside major cities for better deals. House-sharing or buying a fixer-upper can also cut costs.
- Automate Savings: Set up automatic monthly savings transfers, no matter how small. This builds a safety net without the temptation to spend.
- Use Tax Deductions: Iowa residents can lower taxes with deductions and credits. Look for deductions for dependents, retirement, and education. Review tax laws annually and consult a professional.
Utility Expenses in Iowa: What to Expect
Iowa’s utility costs are below the national average, making it affordable. The typical monthly electricity, heating, water, and garbage bill is about $423. This is roughly 5% lower than the national average.
Here’s the breakdown:
- Electricity: $109.63.
- Water: $32.
- Internet: $50.
- Natural Gas: $73.
- Phone: $114.
- Streaming: $45.25.
These prices show Iowa’s essential services are affordable, helping residents budget. For instance, electricity and water are cheaper than in many areas.
Grocery Prices and Food Costs in Iowa
Iowa grocery prices are similar to the national average. They vary by store and item. Typically, US households spend about $438 on groceries each month. Iowans can expect similar costs.
Typical grocery prices in Iowa are:
- Milk (1L): $0.97.
- Bread (0.5 kg): $2.69.
- Chicken Breast (1kg): $10.50.
- Eggs (12): $3.05.
- Apples (1kg): $4.76.
Iowa offers affordable food, especially with local products. Shopping at farmers’ markets or discount stores can save even more, providing fresher, cheaper goods.
Transportation Costs in Iowa
Iowa’s transportation expenses are above the national average. Spending on fuel, public transport, vehicle maintenance, and insurance is 4% higher. In 2023, gas prices in Iowa will match the national average but vary throughout the year. A local transport pass costs about $42.30 monthly, and public transport is limited in some areas.
Here’s a snapshot of transportation costs in Iowa:
- Gas: $0.84 per liter.
- Local ticket: $1.75.
- Taxi (8 km): $14.20.
- Monthly pass: $42.30.
How Much Does Healthcare Cost in Iowa?
The healthcare costs in Iowa are 5% higher than the average American’s expenditure. Individually, healthcare costs are approximately $3,416 annually, while families comprising two kids average over $8,100. To manage these costs, research healthcare plans and consider employer insurance. Health savings accounts and flexible spending accounts are options.
What Are Education and Childcare Costs in Iowa?
In Iowa, families find education and childcare costs significant yet more affordable than in many other states. Parents spend an average of $8,615 yearly on childcare for one child, which nearly doubles for families with two children.
Education costs vary by institution. For example, the University of Iowa charges in-state students about $9,000 yearly. However, out-of-state students face much higher fees, exceeding $30,000. This cost is quite a burden. Yet, Iowa’s education system remains a more affordable choice, especially for in-state residents.
Read Related Article: What Is the Cost of Living in Utah?
Entertainment and Leisure Expenses in Iowa
Iowa offers many fun and low-cost activities. These include outdoor festivals, community events, casual dining, and local parks. The state is ideal for budget-friendly recreation, especially compared to larger coastal cities.
Here are some entertainment costs:
- Dinner for two at a mid-range restaurant: $61.40.
- Movie ticket: $11.
- Cappuccino: $4.93.
- Fast food meal: $9.71.
Iowa’s appeal is its cheap outdoor activities: hiking, biking, and state parks. Many local festivals and events are free, allowing for an enjoyable life on a budget.
How Much Does it Cost to Live in Iowa?
Iowa is affordable. To live in Iowa, a family needs $60,000 to $75,000 yearly for comfort. Iowa’s affordable housing and utilities support this. However, costs vary by location. Iowa’s low living costs appeal to families and individuals looking to save.
How Beem Can Help Manage Cost of Living in Iowa
Beem’s BFF Budget Planner lets you spend, save, plan, and protect your money like an expert with on-point financial insights and recommendations. By monitoring spending, users can spot saving opportunities. Beem also provides local insights. It shows average rent, utilities, transport, and grocery costs in various cities, helping users create personalized plans in Iowa or elsewhere. Download the app here!
Additionally, Beem suggests savings on groceries and services. It aids in managing expenses based on location and income, promoting savings and comfortable living.
Conclusion
The cost of living in Iowa is lower than in many other states, appealing to budget-conscious people and families. The state offers affordable housing and healthcare, helping people stretch their incomes. While taxes, transportation, and utilities vary by location, Iowa remains generally affordable.
Whether moving to Iowa or looking to improve your finances, Beem keeps you organized and on track. It helps you track spending, set savings goals, and monitor financial health. Take advantage of Iowa’s low living costs and use Beem to secure your financial future.
FAQs for What is the Cost of Living in Iowa
What is the average cost of living in Iowa?
Iowa has low housing, utility bills, and food costs, which has attracted families and individuals. A family needs $60,000 to $75,000 yearly to live comfortably in Iowa.
How do housing costs in Iowa compare to the national average?
The home cost in Iowa is $250,000, which is 19% lower than the national average. Such affordability makes Iowa popular among potential homebuyers. Rent is also lower, making housing affordable in cities and the countryside.
Are utilities expensive in Iowa?
Utilities in Iowa are approximately 5% less than the national average. The average monthly account is around $423. Such low costs help keep living expenses down.
What are the transportation options and costs in Iowa?
Iowa offers transportation by car, public transit, and taxis. Gas prices are average. Public transit costs about $42 per month. Car maintenance and insurance are extra. Transportation as a whole is within affordable levels.
How much should I budget for groceries in Iowa?
In general, the cost of groceries for a single person is about $438 a month. Costs vary by store and item. Further, Shopping at local markets and discount stores can save money.