Current Rental Trends in the Des Moines Metro (2025 Market Update)

SEO-Focused Guide for Renters, Investors & Landlords

The Des Moines Metro rental market is shifting fast — and whether you’re a renter looking for the best deal or an investor trying to read the tea leaves, understanding today’s trends is crucial. Below is a clear, data-driven breakdown of what's happening right now in Des Moines, West Des Moines, Ankeny, Johnston, Waukee, and the surrounding suburbs.

📊 Overview: What’s Going On in the DSM Rental Market?

The rental landscape across the Des Moines Metro has entered a transitional phase. Rents are still affordable compared to national averages, but rising vacancies, slowed rent growth, and increased supply are reshaping the market.

Key Takeaways:

• ✔️ Average rent hovers around $983/month, well below national averages.

• ✔️ Vacancy rates have climbed to 6%+, providing renters with more leverage.

• ✔️ A wave of new construction has increased supply — especially in suburban hotspots.

• ✔️ Affordable housing availability continues to tighten, even as the need increases.

• ✔️ Rent growth has slowed and, in some areas, softened.

If you’re tracking the Des Moines rental market for investment, relocation, or property management, these trends matter.

1️⃣ Rent Levels in Des Moines: Still Affordable, But Softening

One major factor defining Des Moines’ appeal is affordability. Compared to major metros, the DSM area continues to offer competitive rental pricing.

Average Rent Pricing (Metro-Wide):

• Studio: ~$818/month

• 1 Bedroom: ~$983/month

• 2 Bedroom: ~$1,091/month

This makes Des Moines one of the more budget-friendly options in the Midwest — ideal for young professionals, families, and remote workers looking for more space without breaking the bank.

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2️⃣ Vacancy Rates Are Rising — and That Means More Negotiation Power

Over the past 18–24 months, the metro has seen a surge in new apartment buildings, particularly in West Des Moines, Waukee, and Ankeny. As supply increases, vacancy rates rise.

Current Market Indicators:

• Vacancy rates recently hit around 6.1% and continue trending upward.

• More inventory = more choices for renters.

• Many properties are now offering move-in specials, discounts, or short-term concessions to boost occupancy.

For landlords, this may require strategic pricing. For renters? It’s prime time to negotiate.

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3️⃣ Rent Growth Has Slowed — and in Some Areas, Declined

While Des Moines historically enjoyed steady rental growth, the current influx of new housing has cooled the market.

Recent Growth Numbers:

• Metro-wide rent growth: ~0.9% year-over-year

• Some luxury or newer communities show slightly higher increases (3%–4%)

• Yet several areas are reporting flat or declining rents due to oversupply

This balanced market benefits renters and creates long-term opportunities for investors.

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4️⃣ Affordable Housing Demand Is Skyrocketing

Even though market-rate rentals are abundant, workforce and affordable units are becoming scarce. Naturally Occurring Affordable Housing (NOAH) continues to disappear due to:

• Renovations pushing rents up

• Older properties being demolished

• Rising property taxes impacting landlords

Low-income and Section 8 waitlists have lengthened across Polk County, signaling a growing need for affordability-focused policies and development.

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5️⃣ What This Means for Renters, Landlords, and Investors

If You’re a Renter:

• You have more options than ever.

• Look for move-in specials or flexible lease terms.

• Expect more competitive pricing on older or less renovated units.

If You’re a Landlord:

• Pricing strategy is key.

• High-quality maintenance, upgrades, and good communication will keep tenants longer.

• Consider small incentives during slower leasing seasons.

If You’re an Investor:

• The next 12–24 months could be a buying opportunity before supply tightens again.

• Suburbs like Ankeny, Waukee, and Bondurant remain strong for long-term growth.

• Workforce housing may offer the most stable ROI in the coming decade.

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6️⃣ Looking Ahead: The 2025–2027 Rental Market Forecast

With new construction slowing and population growth remaining steady, economists expect:

• Vacancy rates to stabilize

• Rent growth to return gradually

• Increased competition for affordable units

• Stable to rising long-term rental demand due to millennial renters, remote work, and tight mortgage affordability

The Des Moines Metro is positioning itself for steady long-term rental demand, even with short-term fluctuations.

📌 Final Thoughts on the Des Moines Rental Market

Des Moines continues to offer one of the best combinations of affordability, quality-of-life, and economic stability in the Midwest. Whether you're a tenant, landlord, or investor, understanding current rental trends puts you in a stronger position to make smart decisions.