Des Moines' New Apartment Construction Regains Ground

GIAA Resources, News,

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.

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.