Des Moines' New Apartment Construction Regains Ground
Roughly 1,218 new apartment units are expected to be built in the Des Moines metro this year — nearly five times more than in 2022, according to a new report by RentCafe.
Why it matters: A national housing shortage has contributed to the rising cost of both renting and buying.
- U.S. apartment construction is on track to hit a record high this year, Axios' Sami Sparber reports.
Of note: RentCafe's analysis examines larger projects — those with 50 or more units.
What they're saying: Counting multifamily construction can be tricky depending on what is included, Matt Weller, director of development for Hubbell Realty, tells Axios.
- The CBRE Multifamily Market Report from the first half of 2023 — which counts all sizes of projects — estimates 1,829 new apartment units this year, an 82% increase from 2022.
Yes, but: This year's estimates from CBRE are still far below the 2,300+ annual average between 2016 and 2019, prior to the pandemic.
The bottom line: Both reports indicate growth in apartment construction this year, but the rates still lag behind pre-pandemic levels.
What's next: Many of this year's developments were benefited by construction loans finalized before interest rates surged, Weller said.
- He predicts another strong year in 2024 followed by tapering construction in 2025.