The transition from an agricultural economy to a mixed economy happened slowly. The Great Depression and World War II accelerated the shift away from smallholder farming to larger farms, and began a trend of urbanization that continues. The period since World War II has witnessed a particular increase in manufacturing operations. While agriculture continued to be the state's dominant industry, Iowans also produce a wide variety of products including refrigerators, washing machines, fountain pens, farm implements, and food products.

The Farm Crisis of the 1980s caused a major recession in Iowa, causing poverty not seen since the Depression. The crisis spurred a major population decline in Iowa that lasted a decade.

After bottoming out in the 1980s, Iowa's economy began to become increasingly less dependent on agriculture, and now has a mix of manufacturing, biotechnology, finance and insurance services, and government services. The population of Iowa has increased at a faster rate than the U.S. as a whole, and Iowa now has a predominantly urban population.

Iowa's largest cities and their surrounding areas.

City Rank	City	2000 City Population	2010 City Population	Metropolitan Statistical Area	2010 Metro Population
1	Des Moines	198,682	203,433	Des Moines-West Des Moines MSA	569,633
2	Cedar Rapids	120,758	126,326	Cedar Rapids MSA	257,940
3	Davenport	98,359	99,685	Davenport-Moline-Rock Island MSA	379,690
4	Sioux City	85,013	82,684	Sioux City MSA	143,577
5	Waterloo	68,747	68,406	Waterloo-Cedar Falls MSA	167,819
6	Iowa City	62,220	67,862	Iowa City MSA	152,586
7	Council Bluffs	58,268	62,230	Omaha-Council Bluffs MSA	865,350
8	Ames	50,731	58,965	Ames MSA	89,542
9	Dubuque	57,686	57,637	Dubuque MSA	93,653
10	West Des Moines	46,403	56,609	Des Moines-West Des Moines MSA	569,633
11	Ankeny	27,117	45,582	Des Moines-West Des Moines MSA	569,633
12	Urbandale	29,072	39,463	Des Moines – West Des Moines MSA	569,633
13	Cedar Falls	36,145	39,260	Waterloo-Cedar Falls MSA	167,819
14	Marion	26,294	34,768	Cedar Rapids MSA	257,940
15	Bettendorf	31,275	33,217	Davenport-Moline-Rock Island MSA	379,690

Population

Historical populations
Census	Pop.		%±
1840	43,112		—
1850	192,214		345.8%
1860	674,913		251.1%
1870	1,194,020		76.9%
1880	1,624,615		36.1%
1890	1,912,297		17.7%
1900	2,231,853		16.7%
1910	2,224,771		−0.3%
1920	2,404,021		8.1%
1930	2,470,939		2.8%
1940	2,538,268		2.7%
1950	2,621,073		3.3%
1960	2,757,537		5.2%
1970	2,824,376		2.4%
1980	2,913,808		3.2%
1990	2,776,755		−4.7%
2000	2,926,324		5.4%
2010	3,046,355		4.1%
Source: 1910–2010

As of 2008, Iowa has an estimated population of 3,002,555, which is an increase of about 19,000 people or 0.6%, from the prior year and an increase of 76,000 or 2.6%, since the year 2000. This is the first time the state has topped the three million mark in population. Iowa is the 30th most populated state in the country. In 2007, the latest demographic information available shows that the state had a natural increase of 53,706 people in population from the last census (that is 197,163 births minus 143,457 deaths) and a decrease of 11,754 due to net migration of people out of the state.

Immigration from outside the United States resulted in a net increase of 29,386 people, while migration within the country produced a net loss of 41,140 people. 6.1% of Iowa's population were reported as under the age of five, 22.6% under 18, and 14.7% were 65 or older. Males made up approximately 49.2% of the population. The population density of the state is 52.7 people per square mile. The center of population of Iowa is located in Marshall County, in the city of Marshalltown.

Demographics of Iowa (csv)

By race	White	Black	AIAN*	Asian	NHPI*
2000 (total population)	96.14%	2.51%	0.63%	1.48%	0.08%
2000 (Hispanic only)	2.68%	0.08%	0.08%	0.03%	0.01%
2005 (total population)	95.79%	2.79%	0.61%	1.67%	0.08%
2005 (Hispanic only)	3.48%	0.13%	0.09%	0.03%	0.01%
Growth 2000–05 (total population)	1.01%	12.55%	-2.70%	14.41%	1.01%
Growth 2000–05 (non-Hispanic only)	0.12%	11.13%	-5.68%	14.14%	0.05%
Growth 2000–05 (Hispanic only)	31.91%	53.85%	19.33%	29.51%	7.14%
* AIAN is American Indian or Alaskan Native; NHPI is Native Hawaiian or Pacific Islander

Iowa's population included about 97,000 foreign-born (3.3%). Iowans are mostly of Western European descent. The five largest ancestry groups in Iowa are: German(35.7%), Irish (13.5%), English (9.5%), American (6.6%), and Norwegian (5.7%).

The racial make up of the state is 91.0% White (non-Hispanic), 3.8% Hispanic, 2.5% Black or African American, 1.6% Asian, and 0.4% American Indian. One percent of respondents report two or more races.

Iowa's population is more urban than rural, with 61 percent living in urban areas in 2000, a trend that began in the early 20th century. Urban counties in Iowa grew 8.5% from 2000 to 2008, while rural counties declined by 4.2%. The shift from rural to urban has caused population increases in more urbanized counties such as Dallas, Johnson, Linn, and Polk, at the expense of more rural counties.

Iowa, in common with other Midwestern states (especially Kansas, Nebraska, North Dakota, and South Dakota), is feeling the brunt of rural flight, although Iowa has been gaining population since approximately 1990. Some smaller communities, such as Denison and Storm Lake, have mitigated this population loss through gains in immigrant laborers.

Another demographic problem for Iowa is the brain drain, in which educated young adults leave the state in search of better prospects in higher education or employment. During the 1990s, Iowa had the second highest exodus rate for single, educated young adults, second only to North Dakota.[67] Significant loss of educated young people contributes to economic stagnation and the loss of services for remaining citizens. 

A 2001 survey from the City University of New York found that 52% of Iowans are Protestant, while 23% are Roman Catholic, and other religions made up 6%. 13% responded with non-religious, and 5% did not answer. The largest Protestant denominations by number of adherents are the Evangelical Lutheran Church in America with 268,543; and the United Methodist Church with 248,211.

The study Religious Congregations & Membership: 2000 found that in the southernmost two tiers of Iowa counties and in other counties in the center of the state, the largest religious group was the United Methodist Church; in the northeast part of the state, including Dubuque and Linn counties (where Cedar Rapids is located), the Roman Catholic Church was the largest; and in ten counties, including three in the northern tier, the Evangelical Lutheran Church in America was the largest. The study also found rapid growth in Evangelical Christian denominations. Dubuque is home to a Roman Catholic archdiocese, which spans the northeastern section of Iowa.

Historically, religious sects and orders who desired to live apart from the rest of society established themselves in Iowa, such as the Amish and Mennonitenear Kalona and in other parts of eastern Iowa such as Davis County and Buchanan County. Other religious sects and orders living apart include Quakersaround West Branch and Le Grand, German Pietists who founded the Amana Colonies, followers of Transcendental Meditation who founded Maharishi Vedic City, and Cistercian monks and nuns at the New Melleray and Our Lady of the Mississippi Abbies near Dubuque.

English is the most common language used in Iowa, used by 94% of the population. William Labov and colleagues, in the monumental Atlas of North American English found that the English spoken in Iowa divides into two large linguistic regions. Natives of northern Iowa – including Sioux City, Fort Dodge, and the Waterloo region – tend to speak the dialect that linguists call North Central American English, which is also found in North and South Dakota, Minnesota, Wisconsin, and Michigan. Natives of central and southern Iowa – including such cities as Council Bluffs, Des Moines, andIowa City – tend to speak the North Midland dialect also found in Nebraska, central Illinois, and central Indiana.

After English, Spanish is the second-most-common language spoken in Iowa, with 120,000 people in Iowa of Hispanic or Latino origin and 47,000 people born in Latin America. The third-most-common language is German, spoken by 17,000 people in Iowa; two notable German dialects used in Iowa include Amana German spoken around the Amana Colonies, and Pennsylvania German, spoken among the Amish in Iowa. No other language is spoken by more than 0.5 percent of the Iowa population. The only indigenous language used regularly in Iowa is Meskwaki, used around theMeskwaki Settlement. 

Des Moines is the largest city in Iowa and the state's political and economic center. It is home to the Iowa State Capitol, the State Historical Society of IowaMuseum, Drake University, Des Moines Art Center, Des Moines Botanical Center, Principal Riverwalk, the Iowa State Fair, Terrace Hill, and the World Food Prize. Nearby attractions include Adventureland in Altoona , Living History Farms in Urbandale, and the Iowa Speedway in Newton. 

Ames is the home of Iowa State University, the Iowa State Center, and Reiman Gardens.

Boone hosts the biennial Farm Progress Show and is home to the Mamie Doud Eisenhower museum, the Boone & Scenic Valley Railroad, and Ledges State Park. The Meskwaki Settlement west of Tama is the only American Indian settlement in Iowa and is host to a large annual Pow-wow.

The Clint Eastwood movie The Bridges of Madison County, based on the popular novel of the same name, took place and was filmed in Madison County. Also in Madison County is the John Wayne Birthplace Museum inWinterset.

Other communities with vibrant historic downtown areas include Indianola, Pella, Knoxville, Marshalltown, Perry, and Story City.  

Iowa City is home to the University of Iowa, the Iowa Writers' Workshop, and the Old Capitol building. Iowa City is the first U.S. "City of Literature" in theUNESCO Creative Cities Network.

The Herbert Hoover National Historic Site and Herbert Hoover Presidential Library and Museum are located in West Branch.

The Amana Colonies are a group of settlements of German Pietists comprising seven villages listed as National Historic Landmarks.

The Cedar Rapids Museum of Art has collections of paintings by Grant Wood and Marvin Cone. Cedar Rapids is also home to the National Czech & Slovak Museum & Library and the Brucemore mansion.

Davenport boasts the Figge Art Museum, River Music Experience, Putnam Museum and IMAX Theater, Davenport Skybridge, Quad City Symphony Orchestra, Ballet Quad Cities, and plays host to the annual Bix Beiderbecke Memorial Jazz Festival.

Other communities with vibrant historic downtown areas include West Liberty, Fairfield, Burlington, Mount Pleasant, Fort Madison, LeClaire, Mount Vernon,Ottumwa, Washington, and Wilton.  

Some of the most dramatic scenery in Iowa is found in the unique Loess Hills. The Iowa Great Lakes include several resort areas such as Spirit Lake, Arnolds Park, and the Okoboji Lakes. The Sanford Museum and Planetarium in Cherokee, Grotto of the Redemption in West Bend, Danish Immigrant Museum in Elk Horn, and the Fort Museum and Frontier Village in Fort Dodge are regional destinations. 

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