We got some good news this week when the nonpartisan Common Sense Institute released its report on affordability in America. Affordability varies drastically by state, and Iowa tops the list!
The report examines how states have been affected by the post-pandemic rise in inflation. It compares household incomes to a list of essential expenses to compare people’s purchasing power.
What Makes Iowa #1 in Affordability
These two pages of information lay out a couple of the important statistics. While Iowans were affected by the surge in inflation like the rest of the country, the impact here was notably different. Iowa households spent $9,000 more on basic expenses (housing, utilities, groceries, health and car insurance, gas, and childcare) in 2025 than in 2019. That’s significantly less than the $15,400 increase seen on average across the country.
And, even though prices have risen, households in Iowa have seen their spending power increase. After covering the basics, Iowans are holding onto 4% more of their paycheck—outpacing the U.S. average by a full 10%.
I also want to point out that while income grew by 30% between 2019 and 2025, expenses only grew by 22% during that time. That 22% increase is the fourth slowest in the nation.
We talk a lot about the importance of access to quality, affordable child care in Iowa. In the House, we’ve passed many bills to make great strides on this issue, and it’s paying off! Our focus on expanding child care slots and increasing provider flexibility has led Iowa’s child care costs to be the 4th lowest in the nation relative to income. We’ve made similar efforts on gas prices as well and are seeing the same results there.
All in all, this is what conservative leadership gets you. We’ve made smart decisions when handling our state budget and been innovative in our legislative solutions to help Iowans through the years of soaring inflation. We’ve ensured that Iowa remains the most affordable and stable place to live, work, and raise a family.
