Home Prices Increase Over 300% in Iowa & Illinois — Wisconsin Over 400%

Purchasing a home has become increasingly impossible for the have-nots and renting housing isn't much better. Over the past 40 years, the housing market in Iowa, Illinois, and Wisconsin has seen significant price increases, but the story isn’t just about the rising numbers. While these states have experienced substantial growth, they’ve been outpaced by much of the nation. Despite being much more affordable overall, the Tri-States continues to feel the "pocketbook burn" as essentials for living continue to increase in price and decrease in availability. Let’s dive into how these numbers stack up across the Tri-States and what it means for families here.

How Much Have Home Prices Really Grown?

Between March 1984 and March 2024, home prices have risen dramatically:

• Iowa: Up 318%
• Illinois: Up 343%
• Wisconsin: Up 419%

While those numbers may seem high, they’re far below the national average of 494%. States like Washington (+828%) and Oregon (+699%) have seen housing prices skyrocket. This means homes in Iowa, Illinois, and Wisconsin are still relatively affordable compared to other parts of the country. However, that doesn't mean residents can afford housing as salary differential in the Midwest also lags behind the coastal areas. Issues with debt, inflation, and property taxes also severely limit families when it comes to providing for necessities, and disposable income.

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Housing Costs for Renters in the Tri-States

Across the nation the U.S. has a shortage of 7.3 million rental homes affordable and available to renters with extremely low incomes. This is specifically incomes at or below the federal poverty guideline or 30% of their area median income. When looking at the below data it's important to understand the shorthand ELI is shorthand for extremely low-income households, while AMI stands for area median income.

Iowa: A Struggle for the Most Vulnerable

Iowa has experienced the lowest price increase among the three states but still faces challenges with rental affordability:

• 27% of renters are extremely low income (ELI).
• Seniors (33%) and disabled individuals (21%) make up large portions of the population.
• Iowa is short 58,377 affordable rentals for ELI households.
• 67% of ELI renters spend over half their income on housing.
• The average ELI household earns $29,400 annually but needs $39,232 to afford a modest two-bedroom rental.

Despite having one of the lowest rent burdens in the country, nearly half of Des Moines metro renters spend more than 30% of their income on housing.

Illinois: Rising Costs, Limited Rentals

Illinois sits in the middle in terms of price growth, with increases of 343% over the past four decades:

• 27% of renters are ELI, earning less than 30% of their area median income (AMI).
• 17% of renters are disabled, and 32% are seniors.
• Illinois has a shortage of 289,419 affordable rental homes for ELI households.
• 74% of ELI renters spend more than half their income on housing.
• A four-person ELI household earns, on average, $30,280 annually, but would need $59,933 to afford a two-bedroom rental at HUD’s fair market rent.

This affordability gap often forces renters to sacrifice essentials like food and healthcare to keep a roof over their heads.

Wisconsin: Steep Price Growth and Cost Burdens

Wisconsin saw the highest price increase of the three states, with a 419% jump over 40 years, placing it closer to the national average:

• 24% of renters are ELI, with seniors (36%) and disabled individuals (18%) comprising a large portion.
• Wisconsin has a shortage of 123,864 affordable rentals for ELI households.
• 72% of ELI renters spend more than half their income on housing.
• A four-person ELI household earns about $29,120 but needs $45,163 annually to afford a two-bedroom rental.

While Wisconsin’s housing market has grown faster than Iowa and Illinois, renters here face similar struggles, with low-income families hit hardest by the affordability gap.

While Iowa, Illinois, and Wisconsin differ in housing price growth and market conditions, their renters share common struggles. Severe cost burdens disproportionately affect ELI renters, forcing difficult trade-offs. Meanwhile, shortages of affordable rentals exacerbate instability and make it hard for families to find secure housing.

Even though Iowa, Illinois, and Wisconsin remain more affordable than many other states across the nation, rising home prices and rental shortages are creating significant challenges. For low-income families, particularly those earning less than 30% of the area median income (AMI), the Midwest housing market offers little relief. Addressing these issues will require investments in affordable housing and policy changes to ensure families, regardless of income, can find stable and affordable homes. Changes or modifications to existing policies could also go a long way to ensuring families already dealing with increasing mortgages and tax rates can keep their homes.