Nationally and locally, the market is seeing a shortage of available homes for purchase. New construction may offer a solution to those looking to buy to 2024. While sale prices continue to rise, it is at a more predictable rate allowing buyers to plan for the future. In 2023, the average price of a new construction home was $447k, a three percent increase when compared to 2022. The pandemic years prior were much less predictable with 9 - 16 percent increases making it difficult to estimate end build costs.
Despite the interest rate increases, homes are selling across the Des Moines metro with the demand outpacing the supply. Many homeowners are sitting on historically low interest rates keeping them in their homes, but new construction is a great option in a low inventory market. However, because of the higher build costs and interests rates, smaller, more affordable houses are being built. Local home builders have been adjusting their planning to accommodate these needs.
Which areas of the Des Moines metro are seeing the most new construction?
We saw fewer homes built and sold in 2023, totally 1,784 total for the metro. Ankeny takes the lead with 383 new construction homes sold. Waukee comes in close behind with 312 new builds sold. Altoona, Urbandale, and Norwalk follow with 138 homes, 124 homes, and 127 homes.
*For information on each metro community visit newconstructionspecialist.com.
If you are considering a new construction home, we’d love to give you more information about the build process and current costs. Feel free to reach out to Ryan, Owner/Builder of Serenity Homes, with your questions at Ryan@SerenityHomes.info
STAT SOURCE: Kalen Ludwig, Real Estate Specialist, 2024 Builder & Developer Slide Deck