Des Moines, Iowa Housing Market

How much can you negotiate in Des Moines?

Only 64 out of every 100 homes for sale have found a buyer. The other 36 are still waiting. Your offer may be the only one on the table. About 1 in 5 sellers has already dropped their price. Each one has learned their first price was too high. Start below their new price, not their old one.

A typical Des Moines home takes 54 days to find a buyer. Half of them take even longer. That is 6% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago. There are 744 homes for sale in Des Moines. That is 2.9 times the tightest month on record, but below the peak of 886. Supply is growing against last year.

What to do about it

• Start in 50314, 50309, and 50311. Those are the three softest ZIP codes in Des Moines.
• Filter for homes listed 60+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 50314 only 46 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in Des Moines?

Asking prices are 10.2% below their Jun 2024 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Des Moines prices have risen in 91 of the last 108 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in Des Moines?

In Des Moines, 38 out of every 100 households rent. Most own their home. That share has held steady for five years. Des Moines added about 1,100 renter households in five years. Renter households average 1.9 people. Singles and couples rent here. Two bedrooms beat four.

Households grew 5% in five years. The housing stock grew 5%. The two are moving in step. 7.7% of homes sit empty. That is normal for a healthy market.

The median Des Moines household earns $68,474 a year. Incomes here have grown 4.5% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 3.7 times the median income. Locals can afford to buy here. Your exit buyer can be a family, not just another investor. A tenant on the median income can pay about $1,712 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

That is the market, not your address. Run an address through the app to see its rent estimate and cash flow.

What numbers should you underwrite a Des Moines deal with?

• Price growth to assume — +3.0%/yr. Des Moines grew 6.0% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Des Moines grows about 3.0% a year. That is the number to type in. Prices fell 3.5% over the last year. That is a timing signal, not a trend.
• Months of carrying cost — 2. A typical home takes 54 days to sell. Budget that long when you exit or refinance. It is 6% slower than a year ago.
• Odds you cut your price to sell — 1 in 5. About 19% of homes on the Des Moines market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $205/sqft. The average listing runs +16% above the median. Luxury homes skew it. Comp your own size class per sqft.
• Competition when you exit — +10%. That is how much the number of homes for sale grew in a year. Your resale will face a bigger crowd than today's comps did.
• Price-to-income ratio — 3.7×. A typical home costs 3.7 times the median income. Locals can afford to buy here. Your exit buyer can be a family, not just another investor. Incomes are rising faster than home prices. Affordability is improving.
• Tenant rent ceiling — $1,712/mo. 30% of the median household income of $68,474. Rents above this line shrink your tenant pool fast.

Is Des Moines a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in Des Moines right now. 64 out of every 100 homes for sale have a buyer, 19% of sellers have cut their price, and a typical home takes 54 days to sell.

Are Des Moines home prices going up or down?

Asking prices are 10.2% below their Jun 2024 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for Des Moines?

Assume +3.0% a year. Des Moines grew 6.0% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Des Moines grows about 3.0% a year. That is the number to type in. Prices fell 3.5% over the last year. That is a timing signal, not a trend.

How fast are homes selling in Des Moines?

A typical Des Moines home takes 54 days to find a buyer. Half of them take even longer. That is 6% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago.

Is Des Moines a renters' market or an owners' market?

In Des Moines, 38 out of every 100 households rent. Most own their home. That share has held steady for five years. 7.7% of homes sit empty. That is normal for a healthy market.

What rent can Des Moines tenants afford?

A tenant on the median income can pay about $1,712 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Des Moines household earns $68,474 a year.

Which Des Moines ZIP code has the most negotiating room?

50314. Only 46 out of 100 homes there have a buyer. 22% of sellers there have cut their price, and a typical home takes 82 days to sell.