The Des Moines, Iowa, real estate market stands out for its steady performance. It offers a clear example of how Midwest cities can remain stable even as national housing trends become volatile. Transaction volumes have returned to levels last seen in 1997, and appreciation has held steady. Des Moines avoids the dramatic price swings and uncertainty seen in many coastal markets.
Scott Wendl, broker and owner of RE/MAX Precision in Johnston, Iowa, brings 30 years of experience in the Des Moines market. As a past state president of the Iowa Association of Realtors, Wendl’s perspective spans local dynamics and broader industry shifts.
Des Moines Fundamentals Hold Steady
Des Moines continues to show resilience despite national headwinds. Inventory has increased slightly compared to the past 18 months, but homes priced correctly are still selling within a month. According to Wendl, this reflects a regional pattern. Midwest markets tend to experience national slowdowns later than coastal markets and recover more quickly, avoiding the sharp price swings seen elsewhere.
Affordability is a key factor behind this stability. Two Des Moines suburbs rank among the fastest-growing in the country, according to U.S. Census Bureau growth data, driven by strong economic fundamentals and affordable home prices. Wendl notes that local buyers and sellers tend to be conservative and less likely to overextend, which helps shield the market from extreme volatility.
How Des Moines Buyers Behave
Buyers in Des Moines are entering the market better informed than ever before. With access to extensive online information about homes, neighborhoods, and crime statistics, buyers can make more informed decisions. Wendl observes that while bidding wars are less intense than during the pandemic, well-priced homes still attract multiple offers and sell quickly.
Demographically, the market reflects a notable age gap. The typical buyer is around 40, while the average seller is in their 60s. People are staying in their homes longer, and higher interest rates have made some homeowners reluctant to move. Underlying demand remains strong, and homes that meet buyers’ needs continue to sell at a steady pace.
Local vs. Out-of-State Investors
The investment property sector in Des Moines reveals a split between local and out-of-state investors. While rental properties still trade regularly, higher interest rates have made it harder for local investors to achieve the returns they once expected. Wendl notes that some properties sell at prices that make it difficult for local investors to earn a strong return, with yields often falling below the 10% threshold many once targeted.
Out-of-state investors, especially those coming from higher-priced coastal markets, view Des Moines differently. Out-of-state investors are willing to accept returns in the 6-7% range, which compares favorably with their home markets. These buyers are typically focused on long-term holds, expecting steady rent increases and stable expenses. Local investors, by contrast, remain selective and cautious, prioritizing deals that meet their return requirements.
Market Activity by Price Point
Des Moines’ housing market is divided by price point, creating distinct sub-markets. Homes priced at $400,000 or less see the most activity. This segment operates in a seller’s market, with limited inventory and quick sales. It continues to attract strong demand from local buyers.
The luxury segment, in contrast, is experiencing rising inventory and slower sales. Homes priced at $1 million or more now face a longer time on market, with months of supply outpacing demand. Wendl notes that million-dollar homes were rare in Des Moines when he began his career. Today, several are listed at $1 million or more, including a handful priced between $4 million and $5 million. This growth in high-end inventory has shifted the upper market toward buyer’s market conditions, requiring sellers to be patient or adjust their expectations.
NAR Settlement’s Local Impact
The recent changes to buyer agency agreements following the National Association of Realtors (NAR) commission settlement have had less impact in Des Moines than many predicted. Wendl believes these agreements have strengthened relationships between agents and buyers by encouraging commitment and transparency. Buyers who sign exclusive agency contracts are typically more serious and loyal, which benefits both parties.
Sellers in the region remain willing to pay buyer-agent commissions at rates similar to those in previous years, and buyers are increasingly aware of how these arrangements work. Wendl has developed educational materials, including a detailed video, to help clients understand the new forms and requirements. As a result, commission structures in Des Moines have remained stable, with only minor adjustments. Most agents continue to demonstrate their value and maintain competitive fees.
AI Tools in Daily Practice
Wendl has integrated artificial intelligence tools into his daily practice, especially for property valuation and client communications. He uses AI to model hypothetical appreciation scenarios and to compare results with data from Zillow, Realtor.com, Redfin, and the NAR’s Realtor Property Resource (RPR). This approach allows Wendl to provide more accurate and timely valuations for clients.
AI also streamlines client communication, helping Wendl craft clear and effective emails and responses. These tools have become a practical complement to traditional methods, improving efficiency and enabling agents to deliver better service to buyers and sellers.
Economy and Population Trends
Des Moines benefits from a diversified economy anchored by the banking and insurance sectors. This economic stability has helped the city attract residents from rural areas, where agricultural automation has reduced job opportunities. As farms become larger and more automated, many workers relocate to Des Moines in search of employment.
Des Moines consistently ranks highly in national surveys for business climate, job opportunities, and quality of life. Des Moines is regularly listed among the best places to start a business and among the top cities for young professionals seeking new opportunities. The area also offers a wide range of entertainment options and community events, further enhancing its appeal to new residents.
What Comes Next for Buyers
Looking ahead, Wendl is optimistic about the Des Moines market. The National Association of Realtors projects a 14% increase in existing-home sales in 2026, following three years of stagnant, low-volume sales. Early 2026 indicators suggest continued local strength. Pent-up demand remains high, with many buyers deciding to move forward despite interest rates that are unlikely to fall significantly in the near future. Wendl notes that buyers who can afford current rates are choosing to purchase now, with the option to refinance if rates decline later.
For investors and real estate professionals, Des Moines continues to offer the core advantages of the Midwest: stability, affordability, and steady appreciation. Over the past several years, home values have appreciated by about 4% annually, providing consistent returns without the risk of sudden downturns.
Des Moines as a Stable Model
Des Moines exemplifies how Midwest markets can thrive amid national housing uncertainty. Conservative local behavior, strong economic foundations, and a high quality of life have enabled the city to avoid the volatility seen in other regions. As more buyers and investors recognize these strengths, Des Moines is likely to remain a strong choice for those seeking reliable real estate opportunities in an unpredictable national landscape. For those able to hold property for three to five years, Wendl is direct: “You really can’t go wrong.” The market continues to offer steady appreciation and a buffer from broader market swings.
About the Expert: Scott Wendl is the broker and owner of RE/MAX Precision, a real estate brokerage headquartered in Des Moines, Iowa. A 30-year veteran of the Des Moines market, Wendl has served as a past state president of the Iowa Association of Realtors.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
