DES MOINES, Iowa — The population of Des Moines has gone up in recent years and the popularity of multi-family apartments and townhomes is on the rise.
Nearly everywhere you look, new complexes are going up across the metro, and construction in progress.
"It is an influx of new residents looking to call Des Moines home," said Derek Haugen of Indigo Living, a local property management company.
According to a 2023 report from CBRE, over 1,000 new multi-family rental units were built in Greater Des Moines last year. 530 of those units were built downtown.
In 2024, several more will open up, like The Meridian at Gray’s Landing. LEVEL, a brand-new complex in the East Village that opened last fall, is already 70% full in terms of occupancy.
“What you're seeing in the options that you're seeing is a direct result of the demand," Haugen told Local 5.
Increases in rental rates over the past few years are now starting to plateau, according to Haugen. Affordable housing remains a big selling point for tenants looking for their next place to live.
And aside from population growth, trends show that more and more people who live in or move to Iowa want to live in the capital city.
“We currently see about 15% of our new renters being from outside of the Des Moines market, with half of those actually being outside of the state of Iowa," Haugen said.
This explains the growing supply of downtown apartments that are flying off the shelf.
“Downtown is downtown," Haugen said. "It's a destination where people want to be, which I think is the other reason that everyone's seen the success that they've had with adding more apartments downtown.”
Rental companies are also working to attract more people to their complexes with amenities. Hubbell Realty believes features such as a dog park, swimming pool, gym or in-unit washer and dryer are more desired than ever.
Hubbell also attributes the apartment surge to the rising costs of homes. They say more people, especially young adults, are choosing to rent instead of buying a home.