Last winter, I heard a story about a couple living in Iowa City who were shocked when they received their heating bill. Having lived in an old single-family home for nearly 30 years, they were aware that their winter bills increased slightly each year, but that year the difference felt particularly significant. As they approached retirement and faced a decrease in fixed income, the fluctuating monthly bills made them reconsider whether they should continue living in their current home.

The area, including Iowa City, experiences long and cold winters. Many days in January see average temperatures drop between 10 to 25 degrees Fahrenheit, with the wind chill often making it feel even colder. According to the pricing structure of MidAmerican Energy, from October to May, the first 1,000 kilowatt-hours are charged at 8.04 cents per kilowatt-hour, while any usage above that is charged at 4.54 cents. In contrast, during the summer months from June to September, the rate is higher at around 10.58 cents. Since heating usage increases in winter, even with a lower unit price, the total amount can still be significant.

In this situation, it's natural to consider whether to maintain a single-family home or downsize to a condo or townhome. There are three main factors to consider.

• Heating Area - A single-family home needs to heat the entire area, including bedrooms and living rooms, while a condo has neighboring units above, below, and beside it, which reduces heat loss.
• Maintenance - Costs for upkeep like roofing, plumbing, and lawn care that are incurred annually for a single-family home are mostly included in the HOA fees for a condo.
• Initial Price Difference - The median price for condos in Iowa City is around $245,000, while single-family homes are about $417,000, resulting in a difference of nearly $170,000.

One term to clarify is HOA, which stands for Homeowners Association. This is the monthly fee used to manage common areas, exteriors, and roofs in condo or townhome communities. It's similar to apartment management fees, but some single-family home communities also have HOAs, so it's essential to check before signing a contract.

Property taxes are another aspect to consider. Iowa has recently updated its programs for homeowners aged 65 and older. Starting in the 2024 assessment year, a new Homestead Exemption will exempt the first $6,500 of taxable value, and if income requirements are met, a tax credit of up to $1,000 for seniors and disabled individuals can also be utilized. Additionally, a law signed in 2026 changed the existing Homestead tax exemption to exempt 10% of the taxable value, retroactively applying from the 2026 assessment year. However, the application process for these programs varies slightly by county, so it's good to know that within Johnson County, the responsible departments differ depending on whether you are inside or outside Iowa City.

Another helpful point to know is that both MidAmerican Energy and Alliant Energy offer energy efficiency rebate programs that can be used for insulation upgrades, HVAC replacements, and smart thermostat installations. If you decide to continue using an older single-family home, utilizing these rebates to improve insulation can help reduce fluctuations in winter heating costs. Some people also look into active senior communities, known as 55-plus communities, among condos or townhomes, which typically handle lawn care and snow removal as part of the management fees, making them somewhat different from regular condos.

Maintaining a single-family home allows for freedom in yard and space, but the burden of heating and maintenance costs continues each year. Moving to a condo or townhome introduces new initial price burdens and monthly HOA fees, but it tends to reduce heating area and allows for external management, leading to smaller fluctuations in winter expenses. Ultimately, the answer may vary based on individual health status, retirement fund size, and how much maintenance one is willing to handle. Since tax and fee structures change slightly each year, it's advisable to check with the county assessor's office or a tax professional before making a final decision. This article is not investment or legal advice, and consulting a professional before any actual contracts is recommended.