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Iowa rent prices forecast to increase 6.1% this year (2025)

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January 14th, 2025 by Ric Hanson

(San Diego, CA) – Despite low unemployment levels, easing inflation, and a robust stock market, many Americans continue to feel the squeeze of high costs—particularly when it comes to housing. Median rents for 2025 are expected to be 4.8% higher nationally than last year, with some areas seeing increases of 20% or more. A new study from Construction Coverage has identified the locations with the biggest change in rent prices. The inflation rate has come down from its peak in mid-2022, but the effects of several years of record price increases still linger, leaving households struggling to make ends meet.

One of the most pressing financial challenges for many is the cost of housing. According to data from Zillow, median rents are approximately 35% higher today than they were before the pandemic. With high home prices and mortgage interest rates pricing many would-be buyers out of the real estate market, rentals have been highly competitive. Underlying these trends is a long-term shortage of housing stock in the United States. Many builders were hard-hit by the Great Recession, and as a result, the U.S. dramatically underbuilt its housing stock throughout the 2010s. Renters are feeling the consequences: rental vacancy rates are near their lowest level on record. In short, this means that more renters are competing for fewer available units.

The study found that in Iowa, rental prices are expected to increase 6.1-percent this year.

  • Studio apartment prices are projected to see the largest increases: Nationally, rents for studio apartments are expected to rise 5.9% to a median of $1,384 in 2025. One-bedroom units follow closely with a 5.3% increase to $1,499.
  • Larger rentals will fare slightly better: Median rents for two-, three- and four-bedroom homes are projected to grow by over 4% each, reaching median rents as high as $2,681 nationwide.
  • Rent prices in Iowa: In 2024, the median rent in Iowa was $1,061. In 2025, it is expected to be $65 more expensive at $1,126, a year-over-year increase of 6.1%.

For reference, here are the statistics for the entire United States:

  • Percentage change in median rent (2024–2025): +4.8%
  • Total change in median rent (2024–2025): +$85
  • Median rent (2025): $1,865
  • Median rent (2024): $1,780

The full report includes data for nearly 400 U.S. metros and all 50 states.