Property Makler
Advanced analytics for residential real estate investing

Des Moines-West Des Moines, IA housing market

Housing market indicators

Indicator	2022	2023	2024	2025*	2022	2023	2024	YTD
Median Listing Price per Square Feet	$224	$229	$230	$226	7.2%	2.2%	0.4%	-1.7%
Active Listing Count	2,321	2,414	2,847	3,529	34.6%	4%	17.9%	24%
Median Days on Market	73	71	72	61	17.7%	-2.7%	1.4%	-15.3%
Share of listings with price increase	8%	4.8%	2.4%	0.6%
Share of listings with price decrease	17.4%	20.8%	20.6%	19.4%

* last available value

Home prices

Short term housing supply drivers

Long term housing demand drivers

Long term housing supply drivers

Note: 12M MA - 12 months moving average, Permits - New Private Housing Structures Authorized by Building Permits. Source: FRED

Housing market overview

Cities and key geographic areas in the Des Moines – West Des Moines MSA

The Des Moines – West Des Moines MSA includes four counties: Polk, Dallas, Warren, Madison.
2024 metro population roughly 754,000, up from about 709,500 in 2020 (strong growth).
Core urban areas: Des Moines (east/central), West Des Moines (west), Ankeny (north), Urbandale/Clive/Johnston (northwest), Waukee (far west), Altoona (east).
Suburban/rural ring: cities and towns in Dallas, Warren and Madison counties, with lower density and more greenfield development.

Area	City/town	Population (approx.)	Density	Income	Quality of Schools	Crime level	Property tax (%)	Personal Income tax	Comments
Core urban	Des Moines	~216,000	High urban	Medium (median HH income low–mid $60k)	Mixed – GreatSchools mostly 3–7; stronger pockets on west/south sides	Higher than suburbs; concentrated in a few central and east‑side neighborhoods	Roughly 1.8–2.1% of market value (varies by school district)	None (only Iowa state income tax)	Most diverse housing stock; older homes; strongest rental market; ongoing infill and redevelopment
Western suburb	West Des Moines	~75,000	Suburban, moderate–high	High (median HH income mid–high $80k)	Generally strong – GreatSchools roughly 6–9 in Waukee, West Des Moines, Van Meter districts	Low–moderate; significantly below Des Moines	About 1.8–2.2%; some of highest absolute tax bills due to values	None	Major retail (Jordan Creek), office and medical hub; strong new construction, townhomes and apartments
North suburb	Ankeny	~75,000	Suburban, moderate–high, expanding north and east	High (median HH income high $80k–low $90k)	Generally strong – GreatSchools about 6–9	Low; family‑oriented suburb	Around 2.0–2.3%	None	One of fastest‑growing cities; heavy single‑family and townhome building; good long‑term demand
NW inner suburbs	Urbandale / Clive / Johnston	Each ~18,000–47,000	Suburban, leafy, mostly built‑out core with some greenfield edges	High (median HH income often $85k–$100k+)	Strong – GreatSchools around 7–9 (Urbandale, WDM, Waukee, Johnston districts)	Low; stable owner‑occupied areas	Around 1.9–2.3%	None	Established neighborhoods, good schools, strong move‑up buyer demand
Far‑west growth corridor	Waukee	~30,000	Suburban, fast‑growing new subdivisions	High (median HH income ~$100k+)	Very strong – GreatSchools often 7–10	Very low	About 2.0–2.4%	None	Top price and appreciation area; large pipeline of lots; strong demand from families and professionals
East suburb	Altoona	~20,000	Suburban, moderate density	Medium–high (median HH income around $80k)	Moderate–strong – GreatSchools about 5–8	Low–moderate	Around 2.0–2.3%	None	More affordable new construction; close to entertainment (Adventureland, casino) and I‑80 corridor
South suburbs	Norwalk / Indianola / Carlisle	~11,000–16,000 each	Suburban / exurban, lower density	Medium (median HH income roughly $70k–$85k)	Mixed‑to‑good – GreatSchools about 5–8	Low	Around 1.8–2.2%	None	Value‑oriented single‑family; commuter towns with room to expand
Rural / small towns	Adel, Winterset, etc.	5,000–10,000 each	Low density	Medium (often $60k–$75k)	Moderate – GreatSchools about 4–7	Low	Often under 2.0%	None	More volatile demand; land availability but slower absorption and limited amenities

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Citizens – income and education

Metro median household income: solidly above U.S. average, driven by finance, insurance, and professional services.
Income gradients:
- Highest: Waukee, Johnston, Grimes, West Des Moines, Ankeny, Clive, Urbandale (many neighborhoods with HH income $90k–$120k+).
- Mid‑range: Altoona, Norwalk, Indianola, Carlisle, most small towns.
- Lower: some neighborhoods in core Des Moines and older inner‑ring areas.
Education levels:
- Region has a large share of adults with some college or bachelor’s degree+, above statewide average.
- College‑educated concentrations in west/north suburbs and around downtown Des Moines professional districts.
- Community colleges and nearby universities (Drake, Grand View, Simpson, DMACC; Iowa State in Ames CSA) support a steady skilled‑labor pipeline.

Key economic sectors

Insurance and financial services
- Large employers in life, health and property‑casualty insurance; back‑office and operations centers.
- Concentrated in downtown Des Moines, West Des Moines and western suburbs.
Government and public administration
- State capital functions, judiciary, federal and local government jobs stabilize employment.
- Creates resilient office and downtown residential demand.
Healthcare and biosciences
- Major hospital systems, clinics, and medical offices scattered across metro, with clusters in Des Moines and West Des Moines.
- Steady employment growth; supports housing near hospitals and along medical corridors.
Logistics, warehousing, and distribution
- Leveraging I‑35/I‑80 crossroads; industrial parks in Ankeny, Altoona, Grimes, Carlisle and rural edges.
- Drives demand for workforce and entry‑level housing.
Manufacturing and ag‑related industries
- Light manufacturing, food processing, equipment and ag‑tech in suburban and rural zones.
Professional and business services, IT
- Consulting, back‑office IT, data centers, and support services that follow corporate and insurance tenants.
Retail, hospitality, and entertainment
- Regional draws: Jordan Creek Town Center, downtown Des Moines, Prairie Trail in Ankeny, Altoona entertainment node.

Housing buying market – key supply drivers

Zoning openness and land availability
- Suburbs such as Waukee, Ankeny, Grimes, Norwalk, Altoona and rural towns are relatively pro‑growth with ample annexable land.
- Local zoning still often favors single‑family, but many cities have opened more land for townhomes and low‑rise multifamily.
- Des Moines proper has opportunities for infill and redevelopment but more neighborhood resistance in some areas.
Regulatory strictness and timelines
- Compared with coastal metros, entitlement and permitting are generally moderately streamlined.
- Impact fees and infrastructure requirements exist but are not unusually burdensome; main constraints are infrastructure extension and school capacity.
Construction workforce and cost
- Labor costs are lower than national average but have risen in recent years due to strong building volume.
- Skilled‑trade shortages (framers, electricians, plumbers) create bottlenecks and construction delays in peak seasons.
- Materials costs have moderated from pandemic peaks but remain above pre‑2020 levels, affecting entry‑level home pricing.
Developable land and infrastructure
- Plentiful greenfield sites on west, northwest, north and south edges; fewer sites east due to industrial/transport corridors.
- Water/sewer, new schools, and arterial road expansions can slow pace in fast‑growth areas like Waukee and Ankeny.
Financing environment
- Small to mid‑size local and regional builders dominate; financing availability is adequate but rate‑sensitive.
- Higher interest rates have cooled some speculative building but demand remains strong, especially for mid‑priced single‑family and build‑for‑rent.
Local policy on density
- Some cities are experimenting with more flexible zoning (smaller lots, duplexes/townhomes), modestly improving affordability.
- Overall, density remains relatively low; scope for additional gentle infill in Des Moines and inner suburbs.

Housing buying market – key demand drivers

Population growth and in‑migration
- Metro population has grown about 6–7% since 2020, well above many Midwestern metros.
- Net in‑migration from smaller Iowa communities and nearby states, attracted by jobs, amenities and relatively low housing costs.
- Younger families and professionals driving demand for suburban single‑family and townhomes.
Growth industries
- Insurance, finance and professional services adding high‑income jobs, especially in Des Moines and West Des Moines.
- Healthcare expanding across the metro, supporting stable, recession‑resistant housing demand.
- Logistics and warehousing gaining from e‑commerce and location advantages, feeding workforce housing demand in east and north suburbs.
Relative affordability
- Home prices and rents remain significantly lower than national averages and much lower than coastal markets.
- This attracts both owner‑occupiers and investors looking for yield and stability.
Demographics and household formation
- Strong presence of millennials and Gen Z entering family‑formation years.
- Growing demand for 3–4 bedroom homes with garages and yards in good school districts.
- Emerging interest in low‑maintenance townhomes and small‑lot single‑family near amenities.
Remote/hybrid work patterns
- Some shift from downtown apartments to larger suburban homes, but central Des Moines still benefits from urban amenities.
- Hybrid work supports demand in exurban areas (Norwalk, Adel, Indianola) where commute is less frequent.
Investor activity
- Increasing presence of small institutional and regional investors in single‑family rentals and build‑for‑rent communities.
- High‑yield neighborhoods in Des Moines proper and workforce suburbs attract out‑of‑state buyers.

Key challenges in the housing market

Affordability pressure for lower‑income households
- Although cheaper than many metros, price and rent growth have outpaced incomes in some segments.
- Shortage of deeply affordable units and starter homes under common FHA price points.
Limited entry‑level inventory
- New construction skewed to mid‑ and upper‑price ranges in Waukee, Ankeny, West Des Moines, Johnston.
- Resale supply of smaller, older homes tight in inner suburbs and desirable Des Moines neighborhoods.
Infrastructure and school capacity
- Fast‑growth suburbs face pressure on roads, utilities, and classrooms, which can delay or constrain new projects.
- Bond referendums and school boundary changes can affect perceived school quality and local desirability.
Neighborhood disparities in Des Moines
- Pockets of higher crime, disinvestment and aging housing stock in a few central and east‑side areas.
- Need for reinvestment, code enforcement and incentives to support renovation and infill.
Interest‑rate sensitivity
- Higher mortgage rates reduce purchasing power, especially in high‑price suburbs.
- May push more households into renting, tightening rental markets and raising rents.
Construction capacity and costs
- Labor and materials costs limit how much truly affordable new product can be delivered.
- Small local builders more vulnerable to financing and demand swings.
Property tax burden perception
- Iowa’s effective property tax rates can feel high relative to home prices, especially on new, higher‑value homes.
- Tax appeals and legislative changes can create some uncertainty for long‑term operating costs.

Investment potential by area

Area	Appreciation potential	Risk	Key drivers
Waukee and far‑west suburbs (Grimes, western Clive/WDM)	High	Moderate	Rapid population and income growth; top‑tier schools; strong new‑construction pipeline; limited long‑term land in core areas; higher price point may be sensitive to economic downturns.
Ankeny and north corridor	High	Moderate	One of fastest‑growing cities; diversified employment access; strong schools; mix of owner‑occupant and rental demand; risk from oversupply in some segments if building outpaces demand.
West Des Moines (especially near Jordan Creek and medical/office hubs)	Medium‑High	Low‑Moderate	Established suburban employment center; high incomes; strong retail and amenities; slightly slower relative appreciation vs. emerging suburbs but very stable; office‑space trends a mild risk.
Urbandale / Clive / Johnston	Medium‑High	Low	Built‑out, desirable neighborhoods; strong schools; good access to jobs; limited new supply inside city limits supports prices; appreciation more steady than explosive.
Altoona and east corridor	Medium	Moderate	Affordable entry into metro; logistics and entertainment employment; good for cash‑flow‑oriented rentals; appreciation depends on continued industrial growth and managing traffic/infrastructure strain.
South suburbs (Norwalk, Indianola, Carlisle)	Medium	Moderate	Value proposition for commuters; room for growth; appeal to families wanting more space; somewhat longer commute and perception of distance limit top‑end price growth; good long‑term hold.
Des Moines – stable neighborhoods (west, south, some north areas)	Medium‑High	Moderate	Older homes with solid bones; walkable areas; strong rental demand and decent owner‑occupant interest; good balance of cash flow and appreciation; risk tied to local school perception and crime spillover.
Des Moines – challenged neighborhoods (parts of central/east)	Low‑Medium	High	Lowest acquisition prices and highest potential yields; upside if targeted reinvestment, infrastructure, and crime reduction succeed; higher vacancy, management and rehab risk; more sensitive to economic downturns.
Rural and small towns in Dallas, Warren, Madison counties	Low‑Medium	Moderate‑High	Lower land and home costs; slower population growth and thinner buyer pool; demand reliant on commuting and small local employers; best suited to long‑term holds or niche strategies (acreage, specialty rentals).

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