Housing Market Analysis: Significant Characteristics of the Housing Market:
Background and Trends

Introduction

Iowa City traditionally has unique housing needs due to the presence of The University of Iowa as well as its large medical complexes and major employers. The demands created by these institutions often significantly affect both elderly and young households as well as families that must compete with students for housing in and around the downtown, close to both the University and other main centers of employment. The University of Iowa undergraduate student population accounts for slightly less than a third of Iowa City's 60,148 residents. The University of Iowa Hospitals and Clinics (UIHC) attract patients from well beyond the county limits, many of whom require long-term outpatient care and, therefore, housing in Iowa City.

In addition to the hospitals themselves, Iowa City is a regional center for the provision of many social and supportive services. Even when hospital care is no longer needed, clients may find it beneficial to stay in the city for rehabilitation or other services. In addition, families and individuals often come to Iowa City to utilize the social services available. These persons generally are in need of housing and often come with few resources. It is not possible to quantify this, but the anecdotal evidence is abundant.

As the cost of new housing continues to rise, the continued viability of the existing housing stock becomes increasingly important. Continued improvement and maintenance of the current stock is vital. In some cases, lower-income homeowners, as well as persons who are elderly or disabled, need assistance in maintaining their homes as well as to make them accessible. Consideration must also be given to preservation of historic structures and to energy conservation measures that will reduce heating and cooling costs when rehabilitating older homes. Some moderate-income homeowners also need assistance in keeping up older homes. Additionally, there is a need to help first-time homebuyers with rehabilitation. Often, moderate-income, first-time homebuyers are only able to afford those older homes that are in need of extensive repairs.

The City's Housing Rehabilitation Program has been preserving and maintaining affordable housing in Iowa City since 1976. In addition to assisting homeowners, the program has been committed to the improvement and maintenance of the City's rental housing stock. A large portion of the City’s rental units are located in structures in the central part of the City. Many of these structures are generally older, single-family homes that have been converted to three or more rental units.

The great demand for affordable housing threatens not only the economic viability but also the architectural integrity of the Iowa City housing stock. Broad-based historic preservation efforts in Iowa City were without formal organization or municipal structure until the 1980s. Augmented public awareness of the architectural vibrancy of Iowa City lead to efforts to protect local landmarks as well as to maintain private residences. In 1983, the City appointed a Historic Preservation Commission and approved a Preservation Ordinance. A Historic Preservation Plan was approved by the City Council in 1992.

Today, preservation efforts include the total neighborhood environment. Neighborhoods that originally rallied in support of historic recognition and in reaction to undesired changes began to organize for ongoing neighborhood advocacy. The City also has a Neighborhood Services Coordinator who assists in the organization of existing and newly formed neighborhood associations.

Iowa City is growing in size through annexation. Likewise, residential development in Johnson County has also been strong. The local economy is growing as new businesses locate in the area, existing businesses expand, and University Hospitals and Clinics continue to evolve. The strong economic base of Iowa City has maintained housing prices. It has also contributed to the extremely low vacancy rates that translate into increased housing prices and therefore a shortage of affordable housing in Iowa City.

The population of Iowa City remained fairly constant during the 1990s with an increase of only six-tenths of one percent between 1990-1996. Reflective of this is the relatively constant percentage of the population represented by each age cohort. However, there was a two-percentage point decrease in the number of persons under age five. The age cohort 15-19 showed a 4.1 percent increase.

Concomitantly, there was an increase of female-headed family households. This household type showed the greatest increase in the percentage of the total population, with a 7.1% increase in percent of the population. Presently, nearly 14% of Iowa City households are female-headed family households. It is possible many other female-headed households reside outside of the city due to Iowa City’s high housing costs.

The most stable group is the age cohort of 65 years and older with an increase of four-tenths of one percent as a percentage of total population. Often, these people are life-long residents of Iowa City. However, there is a slight decrease in the number of elderly single-person households. This may reflect the increase of congregate elderly housing in the area, which results in single and elderly persons being counted in the category of persons living in group quarters. Group quarters also include dormitories and the Greek houses (fraternities and sororities).