The August 2007 issue of Outside magazine lists Iowa City among its 30 best towns in which to live. The towns on the annually ranked list are "smart, progressive burgs with gorgeous wilderness playgrounds--and, yes, realistic housing and job markets."

Iowa City's assets include Sugar Bottom bike trails, Prairie Lights Books, the Englert Theatre, a wide variety of restaurants ranging from "Ethiopian cafes to grilled-cheese stands," and a state that is progressive in pursuing alternative fuels, and attracting large investments to do so.