Housing costs in the city of Ames topped all other Iowa communities, according to a recent survey by the Iowa Association of Realtors.

In 1998, the median price of a house sold in Ames rose to $107,242, up 4 percent from 1997. Ames realtors also sold and listed more houses than in previous years; there were 549 houses sold in 1998 compared to 430 in 1997.

“We have a great housing market that has always been driven by the university, but now we have an influx of people coming because more and more corporations are locating here,” said Russ McCullough, realtor at Gateway Real Estate, 207 Stanton Ave.

The booming economy is the key reason for rising housing costs, said City Assessor Richard Horn.

“The economy is really good, and people are changing jobs more frequently, so more people are moving and buying houses,” Horn said.

McCullough agreed that the increasing number of people moving to Ames is a major component.

“I don’t think it is internal people that are driving up the prices, but it is the people that are coming into Ames,” he said. “Mix in the strong economic conditions we have now, people are more willing and can better afford to buy upper-income houses.”

Horn said low interest rates are the single biggest factor for the latest increase in both the number and size of homes.

“You can get a lot more house for what you pay,” he said.

MuCullough said Iowa State is another big factor in Ames’ housing market.

“The house market in the city of Ames has always been good because of the staff of the university,” he said.

The demographics of the community also are important, he said.

“There are a lot of professors, engineers and successful entrepreneurs,” Horn said. “They tend to have more to spend.”

He said higher costs also are caused by the style of homes in the city.

“We have a bigger percentage of newer houses, and they tend to go for more money,” he said. “Houses are on average about 1,350 square feet, but new houses are around 1,800 square feet.”

Horn also said the city has been better with zoning and permits.

“By doing this, we have nice neighborhoods and higher property values,” he said.