For newcomers exploring Iowa as a relocation destination, Burlington, Iowa stands out as a riverfront community offering affordability, history, and long-term value—especially for job seekers, families, and early retirees looking to stretch their dollars without sacrificing character.
Located along the Mississippi River in southeast Iowa, Burlington has a population of approximately 23,800 residentsand continues to attract attention for its cost of living that is 13.1% below the U.S. average. While the city has faced economic transitions over the decades, it remains a stable, livable community with deep historical significance and improving prospects for residents seeking a lower-cost lifestyle.
Cost of Living and Housing Affordability
One of Burlington’s strongest draws is affordability. The city’s median household income is $55,274, and while that figure reflects past economic challenges, it is paired with housing and daily expenses well below national norms.
The median home price sits at $364,000, which is more than $168,000 lower than the national average. Renters and homeowners alike benefit from lower overall housing costs, making Burlington attractive to first-time buyers, downsizers, and retirees on fixed incomes.
Everyday expenses also remain manageable:
- Groceries cost about 5.3% less than the national average
- Utilities run just 1.2% below average
- Transportation costs are approximately 5.6% lower
Together, these factors allow residents to maintain a comfortable lifestyle while spending significantly less than in many comparable Midwestern and coastal cities.
Employment and Economic Landscape
Burlington’s unemployment rate of 4.9% is slightly higher than Iowa’s statewide average, reflecting its ongoing economic transition. Historically, the city’s economy was built on transportation and manufacturing, beginning with its role as a river port during the steamboat era and later as a major rail hub for the Chicago, Burlington and Quincy Railroad.
The city’s population peaked in 1970, and like many Midwestern manufacturing centers, Burlington experienced job losses in the 1970s and 1980s as factories relocated or closed. Despite this shift, manufacturing remains a cornerstone of the local economy.
Major employers still operating in and around Burlington include:
- American Ordnance LLC
- Case Corporation
- ABB (formerly General Electric)
- Champion Spark Plugs
These employers provide stable jobs in advanced manufacturing, skilled trades, and engineering, supporting the local workforce and regional supply chains.
A City Shaped by the River
Burlington’s story begins in 1829, when the American Fur Company, founded by John Jacob Astor, established a trading post in the area. Its location along the Mississippi River helped Burlington flourish as a bustling port city during the 19th century.
Today, the Port of Burlington remains active as a rental facility located just south of the Great River Bridge, preserving the city’s connection to river commerce while supporting modern industrial and logistical uses.
Snake Alley and Local Character
One of Burlington’s most iconic and beloved landmarks is Snake Alley, a short but famously crooked brick street that has earned national recognition. Ripley’s Believe It or Not named Snake Alley “Unbelievably Crooked” and designated it the #1 Odd Spot in Ripley’s Guide to the Curious Corners of America.
Featuring five half-curves and two quarter-curves, Snake Alley resembles winding vineyard paths found in France and Germany and often draws comparisons to Lombard Street in San Francisco. The alley hosts an annual uphill bike race and art fair, reinforcing Burlington’s blend of history, creativity, and small-city charm.
Tax Advantages for Retirees and New Residents
Burlington also benefits from Iowa’s increasingly retiree-friendly tax policies, making it a compelling option for early retirement and long-term financial planning.
Key statewide tax advantages include:
- Retirement income tax-exempt for residents age 55 and older
- Elimination of the inheritance tax beginning with tax year 2025
- Flat individual income tax rate of 3.8%
- Average effective property tax rate of 1.40%, with assessments spread over an 18-month cycle
These policies significantly reduce the tax burden for retirees and households planning for the future.
Why Burlington Appeals to Newcomers
For those considering a move to Iowa, Burlington offers:
- A low cost of living
- Affordable housing
- A stable manufacturing base
- Rich historical character
- Strong tax advantages for retirees
While Burlington continues to evolve economically, its affordability, riverfront setting, and unique identity make it a practical and appealing choice for newcomers seeking value, history, and a slower pace of life in the heart of the Midwest.
