Des Moines, IA Scores 46 on PropertyIQ. Prices Are Down 5%. Here Is the Full Picture.

Des Moines scores 46 out of 100. The market is below average on our index, but contains a data point that makes it worth understanding: home values are slightly undervalued relative to local incomes.

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The Undervalued Market Paradox

Des Moines is one of the few markets in our database where the overvaluation figure is negative. As of February 2026, homes are undervalued by 3.5% relative to what local incomes would typically support.

The median household income is $84,209 (Census, 2023). The income needed to buy at current prices ($338,875 listing price) is estimated at $90,072. That is one of the smallest affordability gaps in any market we track.

So why does Des Moines score 46? The fundamentals are soft right now.

Prices are falling. Home values declined 5.36% year-over-year as of February 2026 -- one of the steeper declines in this batch. The month-over-month change is also negative at -0.30%.

Inventory is growing. For-sale inventory grew 11.2% year-over-year to 2,965 homes. New listings surged 15.7% from the prior year. Supply is increasing into a weakening demand environment.

Days on market hit 89 -- the slowest in this batch. Homes are sitting.

Price cuts are elevated at 16.5% of listings.

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Key Market Data (as of February 28, 2026 unless noted)

• PropertyIQ Score: 46/100
• Median home value: $287,451 (Zillow, Jan 31, 2026)
• Median listing price: $338,875 (Realtor.com, Feb 2026)
• Year-over-year price change: -5.4%
• Overvaluation vs. income: -3.5% (undervalued)
• Days on market: 89
• For-sale inventory: 2,965 homes
• Inventory change YoY: +11.2%
• Price cuts: 16.5% of listings
• Rent index: $1,252/mo (Zillow, Dec 2025)
• Unemployment: 3.2% (Nov 2025)
• Median household income: $84,209 (Census, 2023)
• 5-year home value change: +20.7%
• Zillow price forecast: +1.4% (12-month, Dec 2025)

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What This Means for Investors

Des Moines is a market where the structural economics are reasonable but the short-term momentum is negative. Falling prices in an undervalued market can be a buying opportunity -- but only if the underlying reasons for decline are temporary rather than structural.

The unemployment rate at 3.2% is healthy, suggesting the decline is not employment-driven. The likely culprit is the combination of rising inventory and interest rate sensitivity in a mid-size Midwest market that does not attract the out-of-state buyer demand that cushioned markets like Omaha.

Watch this market over the next two to three months. If prices stabilize and inventory growth slows, Des Moines at a sub-$300K entry point in an undervalued market could represent a compelling buy. If inventory continues to grow, there is room for further price softening.

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