Moving to Ames in 2026: Cost of Living, Housing, and What to Know
Ames is a city of 67,000 built around Iowa State University, and unlike college towns where the university feels like an addition to an existing city, Ames essentially is Iowa State. The university enrolls about 31,000 students, employs over 16,000 people, and its research output — particularly in agriculture, engineering, and veterinary science — shapes the city’s economy, culture, and future. The campus itself is one of the most beautiful in the Big 12, designed as a land-grant institution with wide lawns, massive oaks, and Lake LaVerne at its center. Ames regularly appears on livability rankings, and for good reason: strong schools (Ames Community School District is consistently top 5 in Iowa), extremely low crime, an engaged community, and housing prices that — while higher than most of Iowa — remain firmly affordable by national standards. If you’re considering where to buy a home in Iowa and want a family-oriented college town with genuine small-town feel plus university resources, Ames belongs on your shortlist.
Cost of Living
Ames sits slightly above the Iowa average for cost of living but well below the national average — roughly 8% below nationwide figures. Housing is the key savings category, with median prices about 30% below the national median. Groceries are cheap, helped by Hy-Vee’s Iowa headquarters being in nearby West Des Moines and Fareway’s presence throughout the region. Utilities are moderate, though Iowa winters mean natural gas bills climb from November through March. Property taxes in Story County average about 1. Use our property tax calculator for detailed numbers.65% effective rate, slightly above the statewide figure, reflecting the strong school district levy. On a $270,000 home, expect annual property taxes of roughly $4,000–$4,500 after the homestead credit and rollback adjustment.
| Category | Ames | National Average | Difference |
|---|---|---|---|
| Overall Cost of Living Index | 92.3 | 100 | -7.7% |
| Median Home Price | $275,000 | $420,000 | -34.5% |
| Median Rent (2BR) | $1,050 | $1,500 | -30.0% |
| Groceries Index | 96.0 | 100 | -4.0% |
| Utilities (Monthly Avg) | $135 | $150 | -10.0% |
| Transportation Index | 87.5 | 100 | -12.5% |
| Healthcare Index | 93.8 | 100 | -6.2% |
Housing Market Overview
The Ames housing market is tight because demand from university employees and families attracted to the school district consistently outpaces new construction. The median sale price hovers around $275,000, which places Ames as Iowa’s second most expensive market behind Iowa City. Homes in the most popular neighborhoods — particularly near campus and within walking distance of elementary schools — move quickly, often receiving offers within the first week. Inventory has been a persistent challenge, with only 250–350 active listings at any given time in a metro of 100,000 people.
New construction concentrates in the south and west sides of Ames, where developments like Hayden’s Crossing, Sunset Ridge, and South Fork offer homes from $300,000 to $425,000. The university’s Iowa State University Research Park on the south side has attracted biotech and tech companies that employ buyers looking for proximity to work. First-time buyers should explore Gilbert (10 minutes south) and Nevada (15 minutes east), small towns in Story County that offer prices $50,000–$80,000 below Ames proper while keeping kids in good rural school districts. Use our mortgage calculator to see what monthly payment to expect in the Ames market.
| Metric | Ames (City) | Ames Metro (Story County) |
|---|---|---|
| Median Sale Price | $275,000 | $260,000 |
| Price Per Square Foot | $170 | $155 |
| Average Days on Market | 16 | 22 |
| Inventory (Active Listings) | ~280 | ~600 |
| Year-over-Year Price Change | +5.4% | +4.8% |
| Homes Sold Above Asking | 30% | 25% |
| New Construction Starts (Annual) | 280 | 520 |
Best Neighborhoods
Old Town / Near Campus
The Old Town area immediately surrounding campus is where Ames began, and the neighborhood retains its early 20th-century character. Streets near Welch Avenue and Lincoln Way have a mix of Craftsman bungalows, four-squares, and colonials priced $225,000–$350,000. The walkability to campus, Campustown restaurants, and Jack Trice Stadium makes this area popular with faculty and staff who want to avoid driving. The downside is student rental properties mixed into some blocks, which can mean noise and parking pressure during the academic year. The best blocks are a few streets removed from Welch Avenue’s bar-and-restaurant strip.
Somerset / South Ames
Somerset is Ames’s largest planned residential development, located in the southwest part of the city. Built primarily from the 2000s onward, homes here range from $280,000 for smaller ranch models to $420,000+ for larger two-stories. The development includes its own trail system, pocket parks, and easy access to South Duff Avenue shopping. Meeker Elementary School is well-regarded. Somerset appeals to families who want newer construction, attached garages, and neighborhood amenities without the older-home maintenance that comes with near-campus living. The commute to campus is about 10 minutes.
North Ames / Northridge Heights
North Ames neighborhoods along Stange Road and north of 13th Street offer established homes from the 1960s through 1990s, priced $220,000–$320,000. The area provides good access to Ada Hayden Heritage Park, one of Ames’s best outdoor spaces with a prairie-rimmed lake popular for walking, running, and kayaking. Northridge Heights features larger lots and a suburban feel while remaining within a 10-minute drive of campus. Schools here feed into the Ames district, which is consistently rated among Iowa’s best. This is a popular landing zone for families who want space, good schools, and a quieter residential feel.
West Ames / Sunset Ridge
The western edge of Ames has seen significant growth, with newer subdivisions filling in along Ontario Street and West Lincoln Way. Sunset Ridge and adjacent developments offer homes from $290,000 to $380,000, mostly built after 2010. The west side provides quick access to Highway 30 for commutes to Boone or the Des Moines metro (35 minutes south on I-35). The area is still developing, which means some lots are still available for custom builds. Restaurants and shopping are concentrated along West Lincoln Way and South Duff, both within a short drive.
Gilbert
Gilbert is a small town of about 1,200 residents, ten minutes south of Ames on Highway 69. For buyers who want a rural Iowa small-town experience while still working or studying in Ames, Gilbert offers genuine charm. A handful of restaurants and a community park center the town. Homes range from $180,000 for older ranch houses to $300,000+ for acreage properties. The Gilbert Community School District is small but well-resourced. It’s the kind of place where kids ride bikes to school and neighbors know each other — a lifestyle that feels increasingly rare and valuable. Our affordability calculator can help you compare Gilbert’s lower prices against Ames proper.
Job Market and Economy
Iowa State University is the city’s economic engine, employing over 16,000 people in academic, research, administrative, and healthcare roles. The university’s strengths in agriculture science, engineering, and veterinary medicine generate significant federal research funding — over $500 million annually — which supports graduate students, postdoctoral researchers, and lab technicians in addition to faculty. The College of Veterinary Medicine is one of the top-ranked in the country, and the Ames National Laboratory (a U.S. Department of Energy facility operated by Iowa State) employs another 250+ scientists and engineers.
The Iowa State University Research Park, established on 230 acres south of campus, houses over 100 companies and organizations employing roughly 3,000 people. Tenants include biotech firms, agricultural technology startups, and federal offices like the USDA National Animal Disease Center, which is the largest federal animal disease research facility in the country. Use our AI real estate tools for detailed numbers. The Research Park has been a significant factor in Ames’s economic diversification beyond pure university employment.
Mary Greeley Medical Center, a 220-bed hospital, is the primary non-university healthcare employer with about 1,300 workers. McFarland Clinic, one of Iowa’s largest physician-owned clinics, is also based in Ames. The unemployment rate in Story County typically runs around 2.0–2.5%, one of the lowest in Iowa and driven by university and research employment that doesn’t follow normal business cycles. If you’re thinking about selling a home elsewhere to relocate to Ames, the job market is stable, though it’s concentrated in education and research — not every career field has deep options here.
Schools
The Ames Community School District is one of the top-performing districts in Iowa and a primary reason families choose to live here despite higher housing costs. The district enrolls about 5,200 students across five elementary schools, two middle schools, and Ames High School. Test scores consistently rank in the top 5–10% statewide. The district’s diversity is notable for Iowa — roughly 25% of students are non-white, reflecting the university’s international faculty and graduate student population. This diversity enriches the classroom experience and distinguishes Ames from more homogeneous Iowa communities.
Ames High School offers over 25 AP courses, competitive STEM and robotics programs, and a speech and debate team that regularly places at state. The school’s performing arts programs are strong, and athletic facilities — including a recently renovated football stadium shared with Iowa State’s practice facilities — exceed what most Iowa cities of this size can provide. Private school options are limited in Ames (St. Cecilia Catholic School is the main alternative), but most families find the public schools strong enough that private education isn’t necessary.
Transportation
Ames is small enough that most destinations are reachable in 10–15 minutes by car. I-35 runs along the east side of town, connecting to Des Moines (35 minutes south) and Minneapolis (3.5 hours north). Highway 30 provides east-west access. CyRide, the city’s public bus system, is partially funded by Iowa State student fees and operates 13 routes covering most of the city. Ridership is high by Iowa standards — CyRide carries over 6 million riders per year — and the system is genuinely useful for students and university employees who live on routes.
The campus itself is very walkable and has extensive bike infrastructure. The city has been expanding its trail network, including connections to Ada Hayden Heritage Park and the High Trestle Trail, a 25-mile rail-trail conversion that crosses a spectacular 13-story bridge over the Des Moines River valley near Madrid. For air travel, the Des Moines International Airport (DSM) is about 40 minutes south and offers direct flights to most major hubs.
Lifestyle and Culture
Life in Ames revolves around Iowa State to a degree that can feel all-consuming during football season. Jack Trice Stadium fills to its 61,500 capacity for Cyclones home games, and the tailgating scene is a Saturday ritual from September through November. Hilton Coliseum draws passionate crowds for basketball. The ISU Alumni Center, renovated campus buildings, and the Reiman Gardens (a 17-acre botanical garden) give the campus a parklike quality that benefits the entire community.
Outside of sports, Ames offers more cultural activity than a city of 67,000 would normally support. The Ames Main Street cultural district hosts summer concerts, art walks, and a thriving farmers’ market. The Octagon Center for the Arts provides gallery space and classes. The university’s lecture series brings national speakers, and the Stephens Auditorium programs touring Broadway shows and major musical acts.
Outdoor recreation is centered on prairies and trails rather than mountains or water. Ada Hayden Heritage Park is the jewel — a restored prairie surrounding a lake, with 4 miles of paved trails popular with joggers, cyclists, and birders. The Skunk River and its tributaries offer paddling opportunities. Big Creek State Park, 20 minutes south, has a reservoir for boating and fishing. Iowa’s agricultural landscape means you’re never more than a few minutes from open fields, country roads, and the kind of big-sky views that define the Great Plains edge. The home services market in Ames stays active with renovation projects as older homes near campus get updated by new faculty buyers.
Neighborhoods at a Glance
| Neighborhood | Median Home Price | Vibe | Best For |
|---|---|---|---|
| Old Town / Near Campus | $225K–$350K | Walkable, historic, student-adjacent | Faculty, staff, walkability seekers |
| Somerset | $280K–$420K | Newer planned community | Families, new-construction buyers |
| North Ames | $220K–$320K | Established suburban, park access | Families, outdoor enthusiasts |
| West Ames | $290K–$380K | New construction, growing edge | Commuters, custom-build buyers |
| Gilbert | $180K–$300K | Rural small town, close proximity | Budget buyers, small-town seekers |
| Campustown | $180K–$280K | Dense, commercial, student-heavy | Investors, young professionals |
| South Ames | $240K–$340K | Research Park adjacent, mixed | Tech workers, university staff |
Compare With Other States
Considering other markets? Here’s how other states compare:
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Frequently Asked Questions
Is Ames a good place to buy a home in 2026?
Ames is an excellent market for buyers who value top-tier public schools, low crime, and university-town culture. The median price of $275,000 is higher than the Iowa average but reflects genuine quality-of-life premiums — the school district, community engagement, and stability of university employment all support long-term home values. Appreciation has been steady at 4–5% annually without speculative bubbles. The challenge is inventory: with fewer than 300 active listings at any given time, popular neighborhoods sell quickly. Be prepared to act fast on well-priced homes near campus or in the Somerset area.
How does Ames compare to Iowa City?
Both are Big Ten/Big 12 university towns with strong schools and educated populations. Iowa City is more expensive (median $320,000 vs. $275,000), has a more developed cultural scene (UNESCO City of Literature, Hancher Auditorium, the Ped Mall), and the University of Iowa’s medical complex makes the job market larger. Ames is more affordable, feels smaller and more cohesive, and Iowa State’s engineering and agriculture focus gives it a different academic personality. Iowa City skews liberal arts and literary; Ames skews STEM and agricultural sciences. Both are great places to live — the choice often comes down to which university culture resonates more. Our mortgage resources cover financing options in both markets.
What’s the rental market like in Ames?
Student demand shapes the rental market significantly. Two-bedroom apartments near campus run $950–$1,200 per month, with newer complexes charging more. Most leases follow the academic calendar, starting in August. Landlords near campus cater to students, so if you’re a non-student renter, look for properties in North Ames, Somerset, or South Ames where the tenant mix is more professional. The rental market loosens during summer when students leave, creating opportunities for short-term leases. Our rent calculator can help you assess what’s affordable.
Is Ames isolated?
Ames is not a big city, and you won’t find the dining, shopping, or entertainment options of Des Moines (35 minutes south on I-35). But it’s far from isolated. Des Moines is an easy day trip or even a reasonable commute. The Des Moines airport is 40 minutes away. Iowa State’s cultural programming — concerts, speakers, sporting events — fills many of the gaps. And the town itself has enough restaurants, shops, and community events that daily life doesn’t require leaving Ames for routine needs. If you’re coming from a major metro area, the adjustment is real. If you’re coming from rural Iowa, Ames feels like a city.
How are the winters?
Ames winters are long, cold, and sometimes brutal. Average January highs reach about 27°F, with lows around 10°F. Subzero temperatures occur multiple times each winter, and windchill values can drop to -30°F or colder during polar vortex events. Annual snowfall averages 36 inches. Iowa State cancels classes very rarely — the running joke is that if the university closes, it’s a genuine emergency. Most residents adapt with high-efficiency furnaces, insulated garages, and the understanding that January through early March is an indoor season. Spring arrives slowly in April, and summer — warm, humid, and filled with outdoor activity — makes the winter worth it.