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The question of 'the best neighborhood to buy a property in Council Bluffs, Iowa' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At WhatsmyCashFlow, when we write a blog post or when we update our real estate spreadsheet for Council Bluffs, we want to bring solutions for everyone.
Enjoy the read, and please remember that we are not financial or investment advisors. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Council Bluffs, Iowa?
The housing market in Council Bluffs, Iowa, is steadily gaining traction, making it an appealing option for buyers and investors.
One of the city’s strengths lies in its strategic location, affordability, and growing economic opportunities. Council Bluffs benefits from its proximity to Omaha, Nebraska, which is just across the Missouri River. This close connection to a larger metropolitan area provides residents with access to a broader job market while enjoying the lower cost of living in Council Bluffs. Why does this matter? Because this dynamic creates a demand for housing from professionals who prefer a more budget-friendly lifestyle while working in Omaha, making it a promising market for investors like you.
Let’s be honest - Council Bluffs offers unique attractions and amenities that are hard to find elsewhere.
The city's historic Union Pacific Railroad Museum, the scenic Loess Hills, and the vibrant Mid-America Center are just a few examples. Its location along the Missouri River provides beautiful landscapes and recreational opportunities, contributing to the city's charm and appeal.
People who are looking to buy in Council Bluffs often include young professionals, families seeking affordable housing, and retirees looking for a peaceful community. The city's excellent school system, diverse cultural events, and strong sense of community also attract a wide array of buyers.
For those interested in buying and renting out property in Council Bluffs, the demand for rental units from both local residents and those commuting to Omaha ensures a steady stream of potential tenants, making it a sound investment.
The real estate market in Council Bluffs is showing positive trends. For instance, the median home price has seen a steady increase recently, indicating a healthy and competitive market. This consistent rise in property values and demand underscores the market's potential for significant returns on investment.
One very specific aspect of Council Bluffs properties is the prevalence of historic homes and charming bungalows, which add a unique character and historical value.
These architectural styles, characterized by their quaint designs and cozy layouts, are highly sought after and can command premium prices. This architectural uniqueness is a significant draw for buyers who appreciate the city's historical and aesthetic value.
As mentioned before, several factors contribute to the future appreciation of property values in Council Bluffs. The ongoing economic development, affordable housing market, and continuous influx of professionals from Omaha are key drivers.
Additionally, ongoing urban development projects and infrastructural improvements, such as the revitalization of the downtown area and enhancements to public transportation, will likely further boost property values up.
Top neighborhoods in Council Bluffs to consider for living
Areas in Council Bluffs that are budget-friendly
| Neighborhood | Average Price per Square Foot ($) | Characteristics | Resident Demographics | Strengths |
|---|---|---|---|---|
| Twin City | 100 | Industrial past, ripe for renovation, increasing connectivity, diverse community | Working-class families, artists, young professionals | Community spirit, increasing connectivity with the city |
| Fairmount Park | 120 | Suburban feel, hilly terrain, proximity to Fairmount Park, tranquil | Long-time locals, nature enthusiasts, young families | Strong sense of community, good schools, recreational opportunities |
| Lake Manawa | 110 | On the cusp of change, diverse property types, vibrant cultural scene | Working-class families, outdoor enthusiasts | Cultural scene, family-friendly environment, relative affordability |
We’ll be transparent - when you’re looking to buy a property in Council Bluffs, finding an affordable and budget-friendly area can be quite the challenge.
However, there are still a few neighborhoods that stand out for their relative affordability and potential for future growth.
Let’s dive into three of these areas: Twin City, Fairmount Park, and Lake Manawa.
Twin City
Twin City is one of the last frontiers for budget-friendly properties in Council Bluffs.
Historically, it has been one of the city's less expensive areas due to its industrial past and higher crime rates. However, recent years have seen significant investment in infrastructure and housing, leading to a gradual transformation.
The area is dotted with single-family homes, many of which are ripe for renovation. The average price per square foot hovers around $100, making it one of the more accessible areas in the city.
The community here is diverse, with a mix of working-class families, artists, and young professionals starting to move in.
Twin City’s strengths lie in its community spirit and increasing connectivity with the rest of the city, especially with the development of the West Broadway Corridor.
However, it still struggles with perceptions of safety and lacks some of the amenities found in more affluent neighborhoods.
Fairmount Park
Fairmount Park offers a more laid-back, suburban feel while still being within the city limits.
It’s cheaper primarily because of its distance from the downtown core and the hilly terrain, which some people find less appealing.
That said, the neighborhood has a unique charm with its proximity to the expansive Fairmount Park and the tranquility it offers.
You can find a mix of single-family homes and a few apartment complexes here, with an average price per square foot around $120.
The residents are a blend of long-time locals, nature enthusiasts, and young families who appreciate the slower pace.
The strengths of Fairmount Park include its strong sense of community, good schools, and recreational opportunities at the park itself. On the downside, it can feel isolated, and the hilly terrain isn’t for everyone.
Lake Manawa
Lake Manawa is another neighborhood worth considering.
It’s cheaper because it hasn’t yet seen the gentrification that other parts of the city have, but it’s on the cusp of change. The area features a variety of property types, including single-family homes and multi-unit buildings.
The average price per square foot here is about $110. Lake Manawa is home to a diverse population, with a strong representation of working-class families and outdoor enthusiasts. The neighborhood’s strengths include its vibrant cultural scene, family-friendly environment, and relative affordability.
However, it lacks some of the polish and high-end amenities of more developed areas and has pockets that can feel a bit rundown.
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Areas in Council Bluffs that are popular and upscale
| Neighborhood | Average Price per sqm | Type of Properties | Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|
| Historic Haymarket District | $2,500 | Restored historic buildings, contemporary lofts, condos | Young professionals, artists, entrepreneurs | Walkability, cultural attractions, burgeoning food scene | Ongoing construction and development |
| Bayliss Park | $1,800 | Charming bungalows, spacious single-family homes | Families, retirees, young professionals | Green spaces, safety, family-friendly amenities | Quieter atmosphere |
| West Broadway | $2,200 | Older homes, new developments, modern apartments | Young professionals, families, retirees | Accessibility, growing retail and dining options, investment potential | Area still in transition |
Historic Haymarket District
If you're looking to invest in Council Bluffs, the Historic Haymarket District should be on your radar. This area has been undergoing a significant transformation, making it one of the most desirable neighborhoods in the city.
While not as pricey as San Francisco's Pacific Heights, the Haymarket District is seeing a steady increase in property values, with average prices per square meter now hovering around $2,500. This area attracts a mix of young professionals, artists, and entrepreneurs who are drawn to its unique blend of historic charm and modern amenities.
Properties here range from beautifully restored historic buildings to contemporary lofts and condos, many offering views of the Missouri River and the Omaha skyline. The Haymarket District is likely to remain a hotspot due to its vibrant arts scene, trendy eateries, and proximity to downtown Council Bluffs and Omaha.
The strengths of this neighborhood include its walkability, cultural attractions, and burgeoning food scene.
However, the downside is the ongoing construction and development, which can be a bit of a nuisance for current residents.
Bayliss Park
Bayliss Park is another area in Council Bluffs that's gaining attention. Known for its picturesque park and historic homes, this neighborhood offers a more relaxed and family-friendly atmosphere.
Property prices here are more affordable, averaging around $1,800 per square meter. Bayliss Park attracts families, retirees, and young professionals who appreciate its serene environment and community-oriented vibe.
Properties in Bayliss Park range from charming bungalows to spacious single-family homes, many with large yards and mature trees. The neighborhood is likely to stay popular due to its beautiful park, excellent schools, and close-knit community.
The strengths of Bayliss Park include its green spaces, safety, and family-friendly amenities.
On the flip side, the area can be quieter, which might not appeal to those looking for a more bustling urban experience.
West Broadway
West Broadway is quickly becoming a favorite among investors and renters alike. This area is known for its revitalization efforts and growing commercial corridor, making it an exciting place to live and work.
Property prices here are on the rise, with average prices per square meter around $2,200. West Broadway attracts a diverse mix of residents, including young professionals, families, and retirees who are drawn to its convenient location and improving infrastructure.
Properties in West Broadway include a mix of older homes, new developments, and modern apartments, offering something for every type of investor. The neighborhood's popularity is likely to continue due to its strategic location, ongoing development projects, and increasing amenities.
The strengths of West Broadway include its accessibility, growing retail and dining options, and investment potential.
However, the area is still in transition, so some parts may feel less polished compared to more established neighborhoods.
Areas in Council Bluffs that emerge as new hotspots
| Neighborhood | Description | Key Attractions | Current Property Prices | Future Outlook |
|---|---|---|---|---|
| Historic Haymarket District | Once a hub for trade and commerce, now a vibrant community with residential lofts, boutique shops, and trendy eateries. | Cafes, breweries, art galleries, unique character, modern amenities. | Relatively affordable compared to other parts of the city. | Prices likely to rise as more people discover its potential. |
| West End | Transformed from an overlooked area to one of the most desirable neighborhoods with renovated homes and new developments. | Chic restaurants, boutique shops, local businesses, proximity to downtown and major highways. | Climbing, but still lower than in more established neighborhoods like Fairmount Park. | Property values expected to continue rising as more people move in. |
| Lake Manawa | Known for serene lake views and recreational opportunities, now attracting a younger, more diverse demographic. | New cafes, outdoor adventure shops, organic markets, proximity to Lake Manawa State Park. | More affordable than central parts of the city. | Property values expected to rise as more people seek its lakeside charm. |
If you're looking to invest in residential property in Council Bluffs, Iowa, and want to tap into areas with strong long-term rental demand, these neighborhoods are worth your attention.
Historic Haymarket District
The Historic Haymarket District, once a bustling hub for trade and commerce, has seen a renaissance in recent years.
Originally known for its warehouses and rail yards, the area has transformed into a vibrant community with a mix of residential lofts, boutique shops, and trendy eateries.
The influx of young professionals and families attracted by the unique character and affordable housing options has revitalized the neighborhood.
New developments, including cafes, breweries, and art galleries, have made the Historic Haymarket District a hotspot for creatives and entrepreneurs.
Despite its historic roots, the neighborhood offers modern amenities and a strong sense of community, making it an attractive option for renters.
Property prices here are still relatively affordable compared to other parts of the city, but as more people discover its potential, prices are likely to rise.
West End
West End, once an overlooked part of Council Bluffs, has undergone significant changes and is now one of the most desirable neighborhoods in the city.
The transformation began with the renovation of older homes and the introduction of new residential developments. The opening of chic restaurants, boutique shops, and local businesses has further enhanced West End's appeal.
The neighborhood's proximity to downtown Council Bluffs and easy access to major highways make it highly attractive to commuters.
While property prices in West End are climbing, they are still lower than in more established neighborhoods like Fairmount Park. The community vibe and the blend of historic charm with modern amenities make West End particularly appealing to young professionals and families.
Expect property values to continue to rise as more people flock to this dynamic area.
Lake Manawa
Lake Manawa, once considered too far removed from the city's core, is now becoming a sought-after neighborhood.
Known for its serene lake views and recreational opportunities, Lake Manawa has long been a hidden gem for those seeking a more laid-back lifestyle. Recent years have seen an influx of new cafes, outdoor adventure shops, and organic markets, reflecting the area's growing appeal to a younger, more diverse demographic.
The proximity to Lake Manawa State Park provides ample outdoor activities, making it ideal for nature lovers and outdoor enthusiasts.
Real estate prices in Lake Manawa are still more affordable than in the central parts of the city, partly because it's perceived as being on the periphery.
However, as more people seek out its unique lakeside charm, you can expect property values to rise.
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Top neighborhoods in Council Bluffs to invest in propertyAreas in Council Bluffs with a strong long-term rental demand
| Neighborhood | Types of Tenants | Types of Properties | Rental Income | Rental Yield | Tips for Increasing Income |
|---|---|---|---|---|---|
| Downtown Council Bluffs | Young professionals, students, tourists | Modern apartments, condos | $1,200 - $1,500/month (1-bedroom) | 5-6% | Opt for properties close to key landmarks like the Union Pacific Railroad Museum or Harrah's Council Bluffs Casino |
| Historic Haymarket District | Young professionals, families | Brick lofts, renovated warehouses | $1,500 - $1,800/month (2-bedroom) | 5% | Consider properties near the Arts Center at Iowa Western |
| Lake Manawa Area | Families, retirees, outdoor enthusiasts | Single-family homes, townhouses, apartments | $1,800 - $2,200/month (2-bedroom) | 4-5% | Focus on properties with views of Lake Manawa or close to Lake Manawa State Park |
If you're considering investing in residential property in Council Bluffs, Iowa, targeting areas with strong short-term rental demand can significantly boost your returns. Three key neighborhoods to focus on are Downtown Council Bluffs, the Historic Haymarket District, and the Lake Manawa area.
Downtown Council Bluffs
Downtown Council Bluffs is a dynamic area that attracts a mix of young professionals, students, and tourists due to its proximity to local businesses, entertainment venues, and educational institutions.
Tenants here typically seek modern apartments and condos with amenities such as fitness centers, rooftop terraces, and secure parking.
One-bedroom apartments in Downtown Council Bluffs can fetch around $1,200 to $1,500 per month. The rental yield here can be appealing, ranging between 5-6%, thanks to the steady demand and reasonable rental rates.
Opt for properties close to key landmarks like the Union Pacific Railroad Museum or the Harrah's Council Bluffs Casino to ensure lower vacancy rates and higher rent.
The main drawback is the area's susceptibility to seasonal fluctuations, particularly during the colder months, which could impact demand.
Historic Haymarket District
The Historic Haymarket District is another hotspot, known for its cultural charm and vibrant community events.
This area appeals mainly to young professionals and families who enjoy the eclectic mix of restaurants, boutiques, and historic architecture. Tenants in the Historic Haymarket District often look for older, character-filled buildings, such as brick lofts or renovated warehouses, which have been updated with modern amenities.
Here, two-bedroom apartments can rent for about $1,500 to $1,800 per month. Rental yields can be solid, around 5%, given the consistent demand for the area's unique atmosphere.
To maximize rental income, consider properties near the Arts Center at Iowa Western, the heart of the district's activity. However, be mindful of the noise and events, which might deter some potential tenants.
Lake Manawa Area
The Lake Manawa area is a prime neighborhood with a reputation for outdoor recreation and family-friendly living. It draws families, retirees, and outdoor enthusiasts who prefer larger homes and proximity to nature.
Properties in the Lake Manawa area often include single-family homes, spacious townhouses, and well-appointed apartments. Rental rates for a two-bedroom apartment here can reach $1,800 to $2,200 per month. Due to the high property values, the rental yield might be lower, around 4-5%, but the area offers stability and lower vacancy rates.
Focus on properties with views of Lake Manawa or close to the Lake Manawa State Park to attract top-tier tenants and command higher rents. The primary downside is the higher initial investment and the competitive market for high-quality properties.
Areas in Council Bluffs with a strong short-term rental demand
| Neighborhood | Demand Reasons & Tenant Profile | Preferred Properties & Amenities | Average Nightly Rate & Tips |
|---|---|---|---|
| Historic Haymarket District | Blend of historic charm and modern amenities, close to Mid-America Center and Union Pacific Railroad Museum. Young professionals, history enthusiasts, and business travelers. | Properties with high-speed internet, fitness center, and easy access to public transportation. | $150-$250/night. Invest in renovated historic buildings or modern condos near key attractions; prioritize dedicated workspace and unique architectural features. |
| Bayliss Park | Beautiful park, local events, proximity to downtown. Families and tourists. | Cozy, family-friendly properties with well-equipped kitchen, outdoor space, and proximity to local attractions and public transportation. | $100-$200/night. Invest in charming bungalows or modern townhomes close to the park; emphasize scenic beauty and community events. |
| Lake Manawa | Scenic views, close to Lake Manawa State Park. Outdoor enthusiasts and families seeking a recreational getaway. | Spacious, well-furnished homes or cabins with modern amenities, private dock, outdoor grill, and lake views. | $200-$300/night. Invest in properties near the lakefront; focus on outdoor amenities and well-maintained properties to attract high-end clientele. |
If you want to reduce the risk of your property investment in Council Bluffs, Iowa, and especially the vacancy rate, aim for these 3 neighborhoods.
Historic Haymarket District
The Historic Haymarket District is a burgeoning area for short-term rentals due to its blend of historic charm and modern amenities. This neighborhood is close to the Mid-America Center and the Union Pacific Railroad Museum, making it a magnet for tourists and business travelers alike.
The typical tenants in the Historic Haymarket District are young professionals, history enthusiasts, and business travelers who appreciate well-preserved historic buildings with modern conveniences.
They look for properties with high-speed internet, a fitness center, and easy access to public transportation. For a one-night stay in the Historic Haymarket District, you can expect to charge around $150-$250.
To maximize rental income in this area, invest in renovated historic buildings or modern condos near key attractions. Properties with a dedicated workspace and unique architectural features will attract higher-end tenants and reduce vacancy rates.
Bayliss Park
Bayliss Park is another neighborhood with strong short-term rental demand, attracting families and tourists.
The area is known for its beautiful park, local events, and proximity to the downtown area.
Tenants in Bayliss Park are often looking for cozy, family-friendly properties that offer a homey feel. They appreciate amenities like a well-equipped kitchen, outdoor space, and proximity to local attractions and public transportation.
The average nightly rate in Bayliss Park ranges from $100 to $200. To get better rental income in this area, consider investing in charming bungalows or modern townhomes close to the park, known for its scenic beauty and community events.
Lake Manawa
Lake Manawa is a prime location for short-term rentals, attracting outdoor enthusiasts and families seeking a recreational getaway.
This neighborhood offers scenic views and is close to Lake Manawa State Park, a popular spot for boating, fishing, and hiking.
Tenants in Lake Manawa typically prefer spacious, well-furnished homes or cabins with modern amenities. They look for properties with amenities such as a private dock, outdoor grill, and breathtaking views of the lake.
The average price for a one-night stay in Lake Manawa is between $200 and $300.
To increase rental income, focus on properties near the lakefront, offering stunning water views. Investing in outdoor amenities and ensuring the property is well-maintained can attract a high-end clientele and ensure consistent bookings.
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Areas in Council Bluffs where property prices might increase in the future
| Neighborhood | Why Prices Are Low | Current Developments | Factors for Price Increase |
|---|---|---|---|
| West End | Historically industrial, overlooked for a long time. | River's Edge development, West Broadway Corridor Project bringing new housing, retail spaces, and parks. | Large-scale redevelopment transforming area, increased desirability and livability. |
| Mid-City | Not as well-known, one of the last affordable areas. | 1st Avenue Corridor project improving sidewalks, lighting, and bike lanes. | Proximity to public transport, infrastructure upgrades, hidden-gem status. |
| Historic Haymarket District | Prices higher than West End or Mid-City but still reasonable. | PACE project turning old industrial area into mixed-use neighborhood with offices, homes, and retail spaces. | Proximity to arts and cultural scene, new job opportunities, urban development. |
As these neighborhoods continue to develop and attract more residents and businesses, you can expect property values to rise, making them smart choices for investment.
West End
The West End of Council Bluffs is a historically industrial area that’s seeing a lot of changes.
Prices here are still relatively affordable because the neighborhood has been overlooked for a long time.
However, with the new River's Edge development and the West Broadway Corridor Project, there's a lot of investment pouring in. These projects are bringing in new housing, retail spaces, and parks. As the area cleans up and becomes more desirable, expect a rise in property prices.
Single-family homes and townhouses will be in high demand as families and young professionals move in looking for more space and a community vibe.
The key factor here is the large-scale redevelopment, which will transform the neighborhood into a more attractive and livable area.
Mid-City
Mid-City is another neighborhood with great potential. It’s one of the last affordable areas in Council Bluffs, partly because it’s not as well-known as other parts of the city.
However, it's gaining attention due to its proximity to public transportation and the ongoing improvements to local infrastructure, like the 1st Avenue Corridor project.
This project aims to revitalize the main thoroughfare with better sidewalks, lighting, and bike lanes.
Properties like multi-family units and condos will see high demand here, especially because they cater to the young professionals and families looking for reasonably priced options with good commute access.
The ongoing infrastructure upgrades and the neighborhood's hidden-gem status make it ripe for appreciation.
Historic Haymarket District
The Historic Haymarket District is already somewhat trendy but still has room to grow.
Prices are higher than West End or Mid-City, but still relatively reasonable compared to more central neighborhoods.
The big draw here is the proximity to the thriving arts and cultural scene, as well as the nearby Union Pacific Railroad headquarters.
With new developments like the Pottawattamie Arts, Culture & Entertainment (PACE) project, which is turning an old industrial area into a mixed-use neighborhood with offices, homes, and retail spaces, the Historic Haymarket District is becoming increasingly desirable.
High-demand properties will include modern lofts and apartments that appeal to professionals looking for a short commute and a vibrant local scene.
The combination of new job opportunities and exciting urban development will drive property prices up.
How to get the best ROI out of a property investment in Council Bluffs, Iowa?
Picking the right neighborhood in Council Bluffs, Iowa is not everything.
Each neighborhood has potential if the strategy is right, but it cannot be based on gut feeling. You need to analyze the data and make financial projections. This approach will save you from a lot of mistakes and money losses.
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One of the standout features of our spreadsheet is its comprehensive data set. It includes all the average and median values for sale price, price per square foot, cash on cash returns, rental income, and occupancy rates for Council Bluffs. This means you can make accurate, data-driven decisions specific to the city's market conditions.
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If you have any questions, feel free to reach out to us at team@whatsmycashflow.com. Also, you can read this detailed article that explains how the Council Bluffs spreadsheet works.
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