The Des Moines housing market is experiencing a period of adjustment, with several key trends and developments shaping the landscape.
Market Trends
As of March 2026, the median sale price for homes in Des Moines was $208,000, reflecting a slight decrease of 0.72% compared to the previous year. Homes are spending an average of 46 days on the market, indicating a more balanced environment between buyers and sellers. Inventory levels have seen a modest increase, providing buyers with more options and reducing the competitive pressure that characterized previous years. Mortgage rates are projected to average around 6.3% this year, which, while higher than the historically low rates during the pandemic, are contributing to a stabilization in home prices.
New Developments
Several significant housing projects are underway to address the demand for affordable and diverse housing options:
- Cynergy Project: Oakridge Neighborhood is launching a $15 million-plus development named Cynergy, aiming to provide larger affordable housing units for working families. The project will transform a former parking lot at 1230 Oakridge Drive into a mixed-use building with commercial space on the ground floor and residential units above.
- Southridge Flats: A $62 million development proposed south of Southridge Mall plans to construct a 160-unit complex to expand affordable housing options. The project has secured nearly $3 million in federal housing tax credits, with construction expected to begin in fall 2026.
- George Flagg Parkway Revitalization: Following significant investments in flood prevention, George Flagg Parkway is witnessing new developments, including the expansion of Jasper Winery and the construction of a $2 million flex office building. These projects signal a broader economic resurgence in the area.
Affordability Challenges
Despite these developments, affordability remains a pressing issue. Home prices have surged by approximately 300% over the past few decades, placing pressure on first-time buyers. While the median list price of homes in the Des Moines metro area has dropped by about $15,000 since 2022, the supply of affordable housing continues to lag behind growing demand.
In response, initiatives like the Polk County Housing Trust Fund’s report have identified approximately 740 underused properties, including church parking lots and vacant office parks, that could be converted into affordable housing. This approach aims to deliver housing to individuals earning at or below 80% of the area median income, though regulatory challenges remain a barrier.
Overall, the Des Moines housing market is navigating a period of transition, with efforts underway to balance development, affordability, and market stability.