The past few years have been a whirlwind for homebuilding and development. From supply chain disruptions and labor shortages to fluctuating interest rates and shifting buyer preferences, the challenges have been relentless. As we look ahead, here are some key market insights that will shape the Des Moines Metro housing landscape in 2025.
Des Moines Market Snapshot
As of February 2025, the Des Moines Metro has 1,998 active single-family listings, equating to a 3.1-month supply—a slight increase from last year’s 2.9-month supply. New construction homes make up 956 of these listings (a 6.1-month supply), up from 869 new builds in 2024.
A notable shift is in the resale market, where active listings have jumped 58% year-over-year from 661 to 1,042. This could indicate more homeowners finally making a move after years of holding onto low-interest mortgages. However, it raises an important question—has the lack of resale inventory been driving new construction sales, and will this increase in available resale homes impact demand for new builds?
New Construction Inventory Trends
Over the past decade, new construction has taken a dominant role in Des Moines’ housing inventory. Historically, new builds made up 30-40% of available listings in February. That surged to 71% from 2021-2023 and now sits at 48%—not due to fewer new builds, but because of an increase in resale listings.
Pending sales tell a steady story, with 1,087 total pending homes, 382 of which are new construction, mirroring last year’s numbers.
Sales Trends & Builder Market Share
In 2024, 7,877 single-family homes were sold, with 1,894 being new construction—accounting for 24% of total sales, the highest percentage of market share to date. Comparing trends of new construction homes sold in the 19 communities I track in the Des Moines Metro, you can see the average number of homes sold before covid, during and after:
- 2013-2019 (Pre-COVID): ~1,450 new construction sales annually
- 2020-2022 (COVID Boom): ~2,200 new construction sales annually
- 2023-2024 (Post-COVID Market): ~1,800 new construction sales annually
Large national builders continue to expand their presence and look at Des Moines as a viable market to be in. DR Horton now holds a 28.5% market share in 2024 (541 homes sold).
Pricing, Affordability & Market Challenges
In 2024, the average new home sale price is $449,000, up ever so slightly from $447,000 in 2023. While pricing has stabilized, affordability remains a concern.
For context:
- In 2021: Avg. new construction price = $372K | Avg. interest rate = <3% | Monthly payment = $1,248
- In 2024: Avg. new construction price = $449K | Avg. interest rate = ~7% | Monthly payment = $2,365
With affordability squeezed and interest rates expected to hold pretty steady in 2025, the big question is: How can builders and developers continue to navigate this environment while maintaining momentum?
Top Markets & The Townhome Sector
Five metro communities account for 64% of all new construction sales:
-
Ankeny – 403 homes (21%)
-
Waukee – 324 homes (17%)
-
Urbandale – 198 homes (10%)
-
Norwalk – 150 homes (8%)
-
Altoona – 133 homes (7%)
Looking Ahead
While affordability remains a challenge, demand for new construction is still strong, and there are plenty of opportunities for builders and developers to thrive. With shifting inventory levels, evolving buyer behaviors, and potential new competition in the market, the key to success will be adaptability, strategic planning, and a keen eye on economic trends.
Let’s continue to work together to build the future of Des Moines housing—one home, one development, and one community at a time.
Des Moines Metropolitan Area Statistics
For a deeper dive into the full stats and details, check out the complete statistics for each Des Moines metropolitan area here! ⬇️
Q1 2025 Des Moines Metropolitan Area Statistics
Explore More: View the Slides from the Builder & Developer Luncheon
Want to dive deeper into the insights shared at the Builder & Developer Luncheon? Check out the full presentation by viewing the event slides here! ⬇️
