Des Moines

IowaDes Moines-West Des Moines MSA

Real Estate Market Analysis

Q3 2025 Report
$216,801 (June 2025, up 2.8% YoY)[4]
Median Home Price
~215,000 (city); ~730,000 (metro area)
Population
~$75,000 (metro area, 2024-2025 estimate)
Median Income
Des Moines Public Schools: Average to Above Average (GreatSchools ratings 5-8/10)
School District Rating

Market Overview

Property Values

$216,801 (June 2025, up 2.8% YoY)[4]
Median Home Price
$193 (June 2025)[4]
Price per Sq Ft
+2.8% (June 2025)[4]
YoY Change

Market Performance

Days on Market66 days (April 2025, up 13.7% YoY)[2]; 44-45 days (May-June 2025, down 4-12% YoY)[3]
Market TypeSeller's market (as of June 2025)[4]
Months of SupplyData not specified; inventory up 23% YoY (April 2025)[2]

Sales Activity

Sales Volume1,161 homes sold in April 2025 (+1.6% YoY)[2]
Metro AreaDes Moines-West Des Moines MSA
Population~215,000 (city); ~730,000 (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate~3.0% (2025 estimate, stable and below national average)
Job Growth Rate~1.5% (2025 estimate, steady growth)
Median Household Income~$75,000 (metro area, 2024-2025 estimate)

Major Employers

  • Principal Financial Group
  • Wells Fargo
  • MercyOne
  • UnityPoint Health
  • Hy-Vee
  • Nationwide
  • John Deere

Demographics

~215,000 (city); ~730,000 (metro area)
Population
35.5 years (metro area, 2024 estimate)
Median Age
~0.8% annually (2024-2025)
Population Growth
34% bachelor's degree or higher (metro area)
Education Level

Family Composition

Mix of young professionals, families, and retirees

Key Industries

Finance & InsuranceHealthcareAgricultureTechnologyLogistics & Distribution

Education

School District

Des Moines Public Schools: Average to Above Average (GreatSchools ratings 5-8/10)
District Rating

Top Schools

  • Roosevelt High School
  • Waukee High School
  • Dowling Catholic High School

Higher Education

  • Drake University
  • Grand View University
  • Des Moines Area Community College

Infrastructure & Development

Major Projects

  • Downtown revitalization initiatives
  • Des Moines International Airport expansion

Transportation

  • Bus rapid transit expansion
  • Highway and interchange upgrades

Planned Developments

  • Mixed-use developments in downtown and suburbs
  • New multifamily and single-family housing projects

Lifestyle & Amenities

Recreation

  • Gray's Lake Park
  • Des Moines Riverwalk
  • Numerous golf courses

Dining & Entertainment

  • East Village restaurants
  • Historic Court Avenue District
  • Live music venues

Cultural Attractions

  • Des Moines Art Center
  • Pappajohn Sculpture Park
  • Iowa State Fairgrounds

Investment Analysis

Investment Opportunities

  • Rising rent growth (projected 2.8% by end of 2025)[1]
  • Shrinking construction pipeline (66% drop in starts)[1]
  • Strong demand for multifamily and single-family rentals

Growth Outlook

Stabilizing and improving fundamentals; demand expected to outpace new supply in 2025[1]

Market Risks

  • Rising days on market in some segments[2]
  • Potential for higher property insurance costs (up 12.5%)[1]
  • Interest rate volatility

Rental Market

Occupancy projected near 93.5% in 2025; net absorption to exceed new deliveries by 50%[1]

Marketing Intelligence

Target Demographics

  • Millennial first-time buyers
  • Young families
  • Relocating professionals

Marketing Channels

  • Zillow/Realtor.com
  • Facebook and Instagram ads
  • Local real estate websites

Pricing Strategies

List slightly below recent comps to generate multiple offers in a seller's market

Common Objections & Response Strategies

Objection: Interest rates are too high.

Response Strategy:

Highlight potential for refinancing later and current rent vs. buy advantages.

Objection: Homes are staying on the market longer.

Response Strategy:

Emphasize increased selection and negotiation opportunities for buyers.

Objection: Worried about overpaying in a rising market.

Response Strategy:

Show recent comparable sales and discuss long-term appreciation trends.

Professional Recommendations

1

Educate buyers on market conditions and financing options.

2

Advise sellers to price competitively and invest in staging.

3

Highlight Des Moines' affordability and job market in marketing.

4

Monitor insurance and operating costs for investment properties.

5

Leverage digital marketing and virtual tours to reach remote buyers.

Competitive Analysis

Comparable Markets

  • Omaha, NE
  • Kansas City, MO
  • Cedar Rapids, IA

Market Positioning

Affordable, stable Midwest market with strong fundamentals and moderate appreciation

Competitive Advantages

  • Lower median home prices than regional peers
  • Strong job market and low unemployment
  • Stable rent growth and high occupancy

Price Comparison

Des Moines median home price ($216,801) is lower than Omaha and Kansas City, offering better affordability[4]

Investment Metrics

5.5%–6.5% (multifamily, 2025 estimate)
Cap Rates
~7% gross yield (single-family rentals)
Rental Yields
~13–15 (favorable for investors)
Price-to-Rent
Strong for well-located multifamily and SFRs due to rising rents and stable occupancy[1]
Cash Flow
2–3% annual appreciation projected for 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

Benefit from increased inventory and moderate price growth; competition remains for updated homes.

Move-Up Buyers

Can leverage equity gains; more options available in mid-to-upper price ranges.

Downsizers

Steady demand for low-maintenance condos and townhomes; inventory improving.

Investors

Attractive cap rates and rent growth; shrinking new supply supports long-term returns.

Relocators

Des Moines offers affordability, job opportunities, and quality of life; strong value proposition.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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