Des Moines, Iowa, is emerging as a prime destination for real estate investors in 2025. With its affordable housing market, robust rental demand, and ongoing urban revitalization, the city offers numerous opportunities for both seasoned and novice investors. This guide delves into the most promising investment areas and strategies in Des Moines for the year.
Why Invest in Des Moines’s Real Estate Market?
- Affordability: The average home value in Des Moines stands at $204,524, up 3.8% over the past year.
- Strong Rental Demand: Des Moines’ rental market is competitive, with an average of 12 prospective renters per vacant apartment and an occupancy rate of 94.4%.
- Economic Growth: Des Moines is experiencing economic growth and a growing number of job opportunities, attracting a steady influx of professionals.
- Urban Revitalization: Ongoing infrastructure projects and city initiatives are enhancing the appeal of various neighborhoods.
Top Neighborhoods for Investment in 2025
1. Highland Park & Oak Park
These neighborhoods have experienced significant increases in home values due to limited housing inventory and revitalization efforts.
2. Waterbury
Waterbury is considered one of the best places to buy a house in the Des Moines area, offering a blend of historic charm and modern amenities.
3. Ankeny
Ankeny is a rapidly growing suburb with excellent schools and a strong community, making it attractive for families and investors.
4. Clive
Clive offers a welcoming community with a safe atmosphere, making it a desirable location for families and investors alike.
5. Beaverdale
Beaverdale is an amazing community with a balance of quietness and activity, featuring friendly neighbors and a lot of diversity.
Emerging Investment Strategies
Short-Term Rentals
Given Des Moines’s growing tourism appeal, short-term rentals can provide higher returns. However, investors should be aware of the city’s regulations governing such properties.
Buy-and-Hold Rentals
With consistent rental demand, especially near attractions and employment hubs, long-term rental properties offer steady cash flow and appreciation potential.
Fix-and-Flip
Investors can find undervalued properties in up-and-coming neighborhoods, renovate them, and sell for a profit, capitalizing on the city’s growth.
Market Trends to Watch
Home Values: The average home value in Des Moines stands at $204,524, up 3.8% over the past year.
Median Listing Price: In March 2025, the median listing home price in Des Moines was $244.5K, trending up 4% year-over-year.
Rental Rates: The average rent in Des Moines is $1,440, which is 21% lower than the national average.
Conclusion
Des Moines’s real estate market in 2025 presents a myriad of opportunities for investors. By focusing on high-growth neighborhoods and employing strategic investment approaches, one can maximize returns in this dynamic market. As always, thorough research and due diligence are paramount to successful investing.
([Market Vibe 2025 – Des Moines – Business Record](https://www.businessrecord.com/market-vibe-2025/?utm_source=chatgpt.com))