This article takes a look at the 15 best places in Iowa for a couple to live on only social security. If you wish to skip our detailed analysis on affordable living for retirees on social security, you may go to 5 Best Places in Iowa for a Couple to Live on Only Social Security.
Iowa: Affordable Living for Retirees on Social Security
Before the pandemic home-buying boom, 40% of home listings were within reach for a typical household. However, by 2022, this figure had dwindled to 21%, marking a significant decline. Redfin Corporation (NASDAQ:RDFN) notes that the housing situation was further exacerbated in 2023, with listings plummeting to a record low of 16%, underscoring the increasing challenge of finding affordable homes. In its analysis of new listings in 97 of the most populous US metropolitan areas, the real estate firm further highlights that the number of affordable homes for sale dropped to the lowest level on record. As of 2023, there were only 352,500 affordable listings, down from 596,135 in 2022.
One potential demographic that is being impacted by the housing crisis is seniors. For those who are in the process of buying a home, there is less income available to save up for retirement. According to the State of the Nation’s Housing 2023 report, the housing payments needed to afford a median-priced home including mortgage, insurance, and property tax is $3,000, whereas the estimated income required is $117,000. Unfortunately, a typical retiree hardly makes this much once retired. Those who do have saved enough or are thinking of downsizing, steeper prices and limited housing supply necessitates a reevaluation of budgets and a willingness to make do with the options available.
Fortunately, the next housing cycle is expected to recover in the coming year, reports Morgan Stanley (NYSE:MS). According to Morgan Stanley (NYSE:MS) research, new-home constructions are expected to rise by 2%, whereas the home-improvement market is also forecast to grow. The market has already started to improve, with daily average mortgage rates dropping to 6.64%. Moreover, the median monthly mortgage payment was $2,472 for the four weeks ending December 17. Redfin Corporation (NASDAQ:RDFN) has also noted a double-digit increase in homeowners contacting their real estate agents, implying more options to choose from when buying a home.
For the average retiree, the factor that is of utmost priority when choosing a home is the cost of living. Due to this reason, every decision from choosing the right state to choosing the right home matters. According to the National Institute on Retirement Security, an estimated 40% of older Americans are reliant on social security exclusively for their incomes. These Americans don’t really have an option but to live on their social security alone. Fortunately, choosing the right state, the right city and town, and the right home can help retirees stretch their retirement incomes as far as they can.
One of the best states to live on social security alone is Iowa. According to the Missouri Economic Research and Information Center, the cost of living in the state is 10.1% lower than the state average. Iowa is also a good state for seniors to live in because of its tax-friendliness. Social security income isn’t taxed in the state. As of 2023, home prices in the state were up by 9.3%, selling for a median sale price of $217,800. Houzeo notes that currently there are 11,000 homes for sale in the state only. Meanwhile, houses on rent are available at different rates.
For the seniors looking to live on social security only, let’s check out the best places in Iowa that can help them achieve this goal.
15 Best Places in Iowa for a Couple to Live on Only Social Security
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Methodology
To compile the list of best places in Iowa for a couple to live on only social security, we have used several sources such as Nasdaq, New Home Source, and Movoto, amongst others. We also explored several forums such as Reddit and Quora to identify which places are good for seniors to live on social security. Places selected have a cost of living index that is 95 or below, implying a cost of living index that is 5% or lower than the national average. Median home prices have been sourced from Zillow Group, Inc. (NASDAQ:Z), Redfin Corporation (NASDAQ:RDFN), and Realtor, while the cost of living indexes are taken from Best Places. Using these data points, we calculated an Insider Monkey Score for each location, considering both the cost of living index and median home prices. Finally, places have been ranked in an ascending order from the lowest to highest scores.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here are the best places in Iowa for a couple to live on only social security:
15. Des Moines
Insider Monkey Score: 14
Cost of Living Index: 86.6
Median Home Price: $229,000
One of the best places for seniors to live in Iowa is Des Moines. Retirees can live a comfortable lifestyle here, considering that the cost of living is 13.4% lower than the national average. The city has many well-maintained parks, cultural attractions, and recreational activities that contribute to a fulfilling retirement lifestyle. Moreover, Des Moines also boasts excellent healthcare facilities, ensuring seniors have access to quality healthcare. Its relatively low crime rate and manageable traffic further enhance the overall comfort and convenience of living here.
14. Marion
Insider Monkey Score: 16
Cost of Living Index: 81.8
Median Home Price: $319,000
Marion, one of the fastest-growing cities in the Midwest, offers a peaceful and calm atmosphere to retirees. The cost of living in the city is 18.2% lower than the national average, and retired couples can live on social security quite easily. Seniors relish the vibrant cultural scene here, from the enchanting Marion Arts Festival in spring to the festive Christmas celebrations in the parks. Furthermore, Marion's proximity to larger urban areas such as Cedar Rapids ensures access to big-city amenities while maintaining a quieter and more relaxed lifestyle.
13. Dubuque
Insider Monkey Score: 17
Cost of Living Index: 84.9
Median Home Price: $229,900
Dubuque makes it to our list of best places in Iowa for a couple to live on only social security owing to its affordable living costs, scenic views, and good quality of life. This Iowa city is situated on the Mississippi River, offering retirees a picturesque backdrop to call home. There are plenty of museums, theaters, and festivals that provide a rich and fulfilling lifestyle. Access to quality healthcare facilities, a friendly community, a low crime rate, and diverse recreational opportunities make it an ideal place for retirees.
12. Cedar Rapids
Insider Monkey Score: 23
Cost of Living Index: 81.8
Median Home Price: $210,000
Revered for its top-notch healthcare system, vibrant cultural amenities, and plentiful recreational opportunities, Cedar Rapids is another nice place to retire in Iowa. The city’s affordable living costs, when combined with its welcoming environment and wide range of amenities, make it a well-rounded retirement destination. The city is also home to a thriving downtown area, plentiful festivals, museums, and theaters that keep seniors busy.
11. Council Bluffs
Insider Monkey Score: 24
Cost of Living Index: 82.8
Median Home Price: $204,000
The vibrant city of Council Bluffs boasts a cost of living that is 17.2% lower than the national average. Situated along the Missouri River, the city offers seniors picturesque views and a serene environment to retire in. There are a number of parks, trails, and outdoor spaces that allow seniors to lead an active lifestyle here. Moreover, there are many cultural events, community festivals, and local gatherings as well that make this city a wonderful place to retire to.
10. Sioux City
Insider Monkey Score: 27
Cost of Living Index: 75.9
Median Home Price: $219,000
Another best place in Iowa for a couple to live on only social security is Sioux City. Sioux City's scenic riverfront setting along the Missouri River offers a peaceful backdrop for seniors to call home. Moreover, the community atmosphere is warm and welcoming, and there are many local events and activities to keep residents busy. There are quality healthcare facilities available as well, along with recreational opportunities and cultural amenities. All in all, the city's blend of affordability, natural beauty, and community engagement makes it an attractive destination.
9. Muscatine
Insider Monkey Score: 29
Cost of Living Index: 77
Median Home Price: $203,000
Located in Eastern Iowa along the Mississippi River, Muscatine is another place in Iowa for a couple to live on only social security. The city boasts an inviting community atmosphere that allows retirees to integrate easily within the community. The cost of living in the city is 23% lower than the national average. Access to healthcare facilities, recreational opportunities, and cultural events further enrich the retirement experience here. With its blend of community warmth, natural beauty, and affordability, the city is a nice place to call home.
8. Newton
Insider Monkey Score: 30
Cost of Living Index: 77.7
Median Home Price: $199,700
One of the best places to retire in Iowa is Newton. The cost of living in this city is 22.3% lower than the national average. Besides its affordable cost of living, the city maintains a small-town charm and a strong sense of community that seniors are attracted to. Moreover, there are various recreational options, cultural attractions, and amenities that make it an ideal retirement destination.
7. Clinton
Insider Monkey Score: 33
Cost of Living Index: 77.8
Median Home Price: $135,000
This charming city located on the Mississippi River is another ideal place in Iowa for a couple to live on only social security. Revered for its impressive architecture and rich history, seniors can live an enjoyable retirement period here. Some activities that seniors love to do include kayaking and fishing, dining in the many fine restaurants, shopping on Main Street, and exploring the many historical sites.
6. Waterloo
Insider Monkey Score: 34
Cost of Living Index: 75.7
Median Home Price: $155,000
Not only is Waterloo an affordable retirement destination, but it also stands out as a city blessed with great weather. The cost of living in this city is 24.3% lower than the national average, and the median house price is well below $200,000. Seniors can explore the many parks and recreation spots in the city, enjoy culture and events at the Waterloo Center for Arts, and participate in local events and festivals.
