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For decades, homeownership has been a pillar of the American dream. However, in recent years, rising housing costs have made that dream unattainable for millions, especially for Americans who aspire to live in highly desirable areas such as California and Florida. Even in states that were once affordable, such as Texas and Georgia, the housing crunch is starting to be felt. However, there is a Midwestern state that is quietly defying this trend, and it isn’t Michigan or Ohio, the two long-standing darlings of Midwestern value. Instead, we’re talking about Iowa, which dethroned the two in a 2026 WalletHub study that ranked the states that spend the most and least on housing.
In order to determine which state earned the title of being the most affordable, WalletHub looked at several factors, including mortgage, rent, and energy costs, which were then adjusted to reflect each state’s median monthly income. Based on the study, Iowans spend 17.3% of their monthly income on housing, the lowest rate in the country. Renters spend about 20.95%, coming in 49th, just behind Oklahoma. Meanwhile, Ohio ranks No. 46 for homeowners and No. 31 for renters, and Michigan is placed at 38th and 27th, respectively. Housing aside, Iowa is an affordable destination in and of itself, boasting free natural parks and low-cost cities.
Affordable living is found in Iowa
There’s a reason why retirees are flocking to the affordable state of Iowa, as sizable cities like Davenport boast a cost of living that is 17% below the national average, per Best Places. Part of the Quad Cities region, Davenport has become a popular place for families to settle down, especially central and northwest Davenport, with affordable homes and neighborhoods that are within walking or driving distance to the city’s shopping areas, healthcare facilities, and restaurants. Plus, West Lake, a 620-acre park, is just a 15-minute drive away, featuring a swimming beach, fishing, and camping areas that start at $20…