As of February 22, 2026, the real estate market in Iowa is experiencing a significant boom, with both residential and commercial properties seeing a surge in sales and prices. Experts attribute this growth to a combination of factors, including a strong economy, low interest rates, and a growing population.According to data from the Iowa Association of Realtors, home sales in the state have increased by 10% over the past year, with the average sale price rising by 5%. This trend is consistent across the state, with both urban and rural areas seeing substantial growth in demand for housing.One of the driving forces behind this surge in the real estate market is the influx of new residents to the state. Iowa's low cost of living, excellent schools, and quality of life have made it an attractive destination for individuals and families looking to relocate. As a result, the demand for housing has outpaced supply, leading to increased competition among buyers and rising prices.In addition to residential properties, the commercial real estate market in Iowa is also seeing significant growth. Businesses are expanding and new companies are moving to the state, leading to an increased demand for office space, retail storefronts, and industrial properties. As a result, vacancy rates are low and rents are on the rise, making Iowa an attractive market for investors and developers.Overall, the outlook for the Iowa real estate market in 2026 is positive, with experts predicting continued growth in both residential and commercial sectors. However, some concerns have been raised about affordability, especially for first-time homebuyers and low-income residents. As prices continue to rise, policymakers and stakeholders will need to work together to ensure that housing remains accessible to all residents of the state.