Des Moines Ranks #3 Among America's Affordable Metros

Recently, I reported on a study that found Iowa is one of the better states in the country for retirement. A big reason for that was pretty simple: Iowa is generally a more affordable place to live, which can help people make their retirement savings last longer. It turns out some of those same advantages can be pretty helpful when you are on the other end of your working life, too.

A new study from Rove Lab looked at the 100 most populous metropolitan areas in the United States and tried to figure out which ones offer the best combination of affordability, wages, job growth and things to do for young people just starting their lives and careers. Well, tip your hat Iowa; Des Moines came in at #3 in the entire country. That is a pretty impressive spot, especially when you look at some of the numbers behind the ranking. By the way, if the ranking is truly "in the numbers" then Des Moines (72.89) was less than two points behind the leader for metro areas, Fayetteville-Springdale-Rogers, Arkansas (74.24).

According to the study, the Des Moines-West Des Moines metro has an average annual wage of $73,925, while the cost of living is 8.3% below the national average. Median monthly rent and utilities come in at $1,178, and the study puts the metro's rent-to-income ratio at just 19.1%. Bottom line, a relatively large portion of a young worker's paycheck is not immediately disappearing into housing costs. That is usually one of the biggest expenses when you're starting out.

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It's not just cheap rent, though. Des Moines also showed some serious job growth. Employment in the metro grew 7.3% from 2022 to 2025, according to the study. Average wages also grew by 9% in that same period of time.

That combination helps make this ranking especially interesting. Having an affordable apartment doesn't mean much if there are no "good" jobs available. On the other hand, a city can have plenty of great jobs, but those opportunities become harder to take advantage of when housing and everyday expenses eat up your paycheck. Des Moines essentially has a pretty good mix of both.

The study also found that 18.7% of the metro's population is between the ages of 22 and 34, while rental availability was measured at 6.7%. Rove Lab also considered things like arts, recreation, restaurants, and bars when putting together its final ranking. That last part is worth mentioning because starting your career is not all about going to work and paying bills. People want somewhere they can actually enjoy living and can grow their life. You know the process; career, car, house, spouse, and kids. All that fun stuff needs to be provided for too.

And this isn't the first time we have seen Iowa communities get national attention for giving people opportunities to build a life. Earlier this month, I wrote about Cedar Rapids landing at #14 on Indeed's Best Cities for Work list. That ranking highlighted Cedar Rapids for housing affordability, easy commuting and job opportunity. In fact, Cedar Rapids ranked #1 for housing affordability, #3 for easy commuting and #7 for job opportunity in the Indeed study. Put all of these studies together and an interesting picture starts to emerge.

From retirement to the beginning of a career, affordability seems to be one of Iowa's biggest advantages. Our state post card could say: "come stay where our paychecks go further. Where housing and everyday expenses don't consume quite as much. Where decent paying jobs seem to be readily available in the same capacity that affordable housing does. It's all found in Iowa." For someone in their 20s trying to get their first apartment, find a job, and establish themselves, that matters. Eventually you'll want to retire; and that matters, too.

Des Moines ranking #3 nationally doesn't mean it is perfect for everyone. Where someone chooses to live depends on their career, family, lifestyle, and plenty of other factors. However, this national study looks at affordability, wages, job growth, and quality-of-life factors; then it put Des Moines near the very top. It's certainly another reason to pay attention to what is happening here in Iowa.