Iowa’s real estate market showcases a diverse range of property values, with certain ZIP codes commanding significantly higher prices than others. This analysis delves into the top 20 most expensive ZIP codes in Iowa, utilizing data from Zillow’s Home Value Index and the Census Bureau’s 2023 American Community Survey, focusing on median home values from December 2024 and the average over the preceding 12 months. This comprehensive approach provides a robust understanding of the market dynamics within these affluent areas. The examination considers not only current valuations but also the trajectory of growth over recent years, offering insight into the long-term investment potential of these locations.
Leading the pack is ZIP code 50061, encompassing the area south of West Des Moines, including Cumming and Orilla. This area signifies affluence beyond Des Moines’s immediate suburbs, reflected in the substantial median household income of $130,250 and average household income of $175,415. A significant portion of households, approximately 30%, earn $200,000 or more annually. This ZIP code has experienced remarkable home value appreciation, with a 42.9% surge from December 2019 to December 2024, reaching a median value of $578,220. The year-over-year growth of 4.9% further underscores the robust market in this desirable locale.
The second most expensive ZIP code, 51355, centers around Okoboji, boasting stunning lakefront properties along West Okoboji Lake. The area’s natural beauty translates into premium real estate values. Home values have experienced a remarkable 51% increase over the past five years, reaching $517,944 by December 2024. This surge exemplifies the desirability of lakefront living and the consistent demand for properties in this picturesque region. Notably, the period from December 2020 to December 2021 witnessed a significant jump in median home value, highlighting a period of accelerated growth.
Across the lake lies 51331, the third most expensive ZIP code, centered on Arnolds Park, connected to Okoboji via Okoboji Grove Road. While the median household income here is lower than in 50061, at $84,615, with an average of $109,911, this ZIP code has experienced the most dramatic home value appreciation among the top five. A remarkable 61% increase over five years, reaching $475,070 in December 2024, indicates strong market demand and potential for future growth. This significant appreciation suggests factors beyond income levels, such as location and lifestyle, are driving property values.
Urbandale’s western section, represented by ZIP code 50323, claims the fourth spot on the list. Situated approximately 11 miles from Des Moines, this area boasts exceptionally high incomes, with a median household income of $173,659 and an average of $202,398. While home value growth in this area has been comparatively slower than others in the top five, a 31.5% increase over five years, reaching $458,591 in December 2024, still represents a substantial return on investment. This more moderate growth, compared to other top ZIP codes, may indicate a more established and stable market.
Rounding out the top five is 50229, a sprawling ZIP code centered in Prole and extending westward to Patterson. This predominantly rural area southwest of Des Moines offers a different lifestyle compared to the other top ZIP codes. Despite being more rural, incomes in this area remain above the state average, with a median household income of $106,087 and an average of $125,598. Home values have experienced robust growth, exceeding 40% over the past five years, reaching $456,018 by December 2024. This suggests the appeal of a more rural setting, coupled with proximity to Des Moines, is driving demand and price appreciation.
These top five most expensive ZIP codes in Iowa paint a picture of diverse landscapes and lifestyles, each contributing to high property values. From the affluent suburbs south of West Des Moines to the lakefront properties of Okoboji and the rural expanse southwest of Des Moines, these areas attract residents with varying preferences and income levels. While factors like household income undoubtedly play a role in driving home values, the unique characteristics of each location, including natural beauty, proximity to urban centers, and lifestyle offerings, also contribute significantly to their desirability and subsequent price appreciation. The analysis of these top ZIP codes provides valuable insights into the Iowa real estate market, highlighting the dynamic interplay of factors that influence property values across the state.
