BUILD Des Moines • January 2026
“Making predictions is always tough,” says Jenna Kimberley of Kimberley Development. “The economy is a moving target, so any predictions you make are just an educated guess.”
Kimberley says that last year at this time, she had predicted a stronger pace for 2025, which didn’t pan out quite that way. “I expected it to be better at the first of the year, and I think everyone was predicting more of a drop in interest rates. That being said, the market went through a lot. When rates didn’t drop, there was more inventory on the market, so lot purchases slowed.”
Because bringing a development to market is a two-year cycle, Kimberley says the pace of development in 2026 will determine the availability of lots over the next two years, which makes predictions even more challenging.
“When the pace didn’t pick up as quickly as expected last year, we considered adjusting midyear,” Kimberley says. “But we decided to move forward and ended up bringing on 325 lots last year. That’s about half what we developed during the post-COVID peak, but about back to 2018 normal levels.”
As the company enters 2026, Kimberley says they’re making some adjustments to meet the current demand. “Interestingly enough, about 20% of homebuyers are paying cash, even at the high end, because of the equity and investments they have available to them. That segment of the market has been very strong, so we’re pivoting on some of our projects and adjusting preliminary plats to offer a variety of lots, not neglecting the typical buyer but adding some larger ‘acre estate’ lots.”
Kimberley says interest rates and affordability remain a challenge. And the recent data indicating Iowa’s rising cancer rates adds another concern that could affect the state in numerous ways, including its ability to attract and retain buyers.
“I’ve been meeting with legislators and officials, discussing this data and what we can do as a state to address water quality issues,” Kimberley says. “This isn’t a political issue—it’s an Iowa issue.”
She does see some encouraging signs for the local housing market in 2026.
“Commercial plats and multifamily remain strong. Some communities struggle to attract multifamily projects, but a lot of that activity depends on the cities themselves and the types of projects they’re willing to allow.”
Des Moines metro as a whole remains a steady market, but Kimberley says Ankeny and the western suburbs are still the strongest growth points for the area.
“Regulatory red tape, interest rates, rising costs—they make affordability an ongoing challenge,” Kimberley says. “And part of hedging our bets as a company is pivoting to find ways to offer something for buyers at each price point. Buyers are there if the market can adjust.”
