Why the 2026 Des Moines Housing Market Is a Great Opportunity to Start Building
Inflation, interest rates, local market dynamics — there are many factors to weigh when you’re deciding when to build or buy a new home.
As one of central Iowa’s premier custom home builders, we often hear people ask, “Is now a good time to build a home?”
Our answer for 2026 is a resounding “yes.” Whether you want to build a custom home or buy a newly built home, the combination of readily available lots, predictable material costs, and a buyer-friendly market make it a wonderful time to start.
If you’ve been waiting for the perfect moment, or if you’re just starting to do your research, here’s a look at why now is a great time to enter the market.
Key Takeaways
- The 2026 housing market is more balanced, tipping from favoring sellers more toward buyers.
- The Des Moines, Iowa, metro remains one of the most affordable places to live.
- While interest rates remain high, they appear unlikely to drop significantly in the short-term. Starting now lets you get ahead of high buyer demand and start building equity in your home.
- Locking in material and labor costs now, before prices rise, is an advantage.
The 2026 Housing Market Is Favorable for Buyers
After being in a hyper-competitive “seller’s market” in recent history, the housing market in 2026 is shifting to a more balanced and friendly environment for buyers. According to the National Home Builders Association, home inventory has increased and asking prices are moderating, making it a more appealing time to jump in.
We know that interest rates remain a point of concern for many buyers. Over the last four to five years, they’ve grown from historic lows in the 3% range to hovering in the mid-6s. This has caused many buyers to wonder whether they should wait for more favorable rates. When those rates would come down, however, is uncertain. Many experts are predicting rates to remain near these levels well into 2027.
That means there are advantages to acting soon instead of waiting. Buying or building now, then potentially refinancing later, allows you to beat out high buyer demand. You’ll be able to take advantage of lower material costs and start building equity in your home. It’s a situation where the old adage of “date the rate, marry the home” can bring some wisdom.
Home Building Costs Are More Predictable
Escalating prices during the COVID-19 pandemic meant that some home buyers experienced sticker shock at the end of their builds due to rising material costs.
Inflation remains a constant concern for material prices, but starting your build now brings you the opportunity to find the best prices you’re likely to receive. Material costs are unlikely to decrease over time, meaning starting your home in 2027 will likely mean costlier base costs than 2026.
If you’re worried about how the time of year may influence your costs, know that working with an experienced home builder like KRM helps to reduce this market uncertainty. KRM offers you fully up-front, transparent home pricing, so you won’t have any surprises at the end of your build. As you’re choosing your materials, our team can help you look for alternative pricing or easy swaps if prices are too high.
Des Moines, Iowa, Is One of the Most Affordable Housing Markets
The Des Moines metro is regularly named among the most affordable and livable areas in the United States. The median home sale price of $306,000 sits well below the national average, meaning it’s one of the best housing markets in the nation for affordability.
The metro’s suburbs are also booming with population growth. Again named the fastest growing major metro in the Midwest this year, the Des Moines area has strong employment across finance, insurance, healthcare, technology, and agriculture, creating long-term housing demand.
Building or buying a new home in Des Moines suburbs like Grimes, West Des Moines, Waukee, and Urbandale offers the opportunity to get in on growing communities and developments near new schools, parks, retail, restaurants, and entertainment. The inventory of existing homes remains relatively limited in many desirable areas, making a custom build an attractive alternative for buyers who can’t find exactly what they want.
Newer Developments Offer More Homesite Choices
As the Des Moines metro expands outward at a rapid pace, this creates golden opportunities for custom home builders. One of the advantages of building sooner is the opportunity to get a prime spot in a premium new development. Tremendous growth pockets in suburbs like Waukee, Grimes, West Des Moines, and Norwalk, mean that premium homesites are available right now.
The best lots in these developments are often the first chosen. Being among the first in a newer development allows you to build equity as other homes are added to the development with home prices typically increasing over time.
If you don’t already have a lot selected, KRM has many lots available across the Des Moines metro. We have new developments in the following cities:
Plan Your New Home With Confidence. Talk With KRM Today!
Whether you’re looking to build or buy a new home, you want to do it with confidence. KRM Custom Homes has spent over two decades partnering with central Iowa families and simplifying the process.
Whether you already own a lot in the Des Moines metro or want to explore our inventory, we are here to partner with you. Contact us today for a free consultation.
