Build Des Moines • January 2025
Kimberley Development’s Jenna Kimberley says a realistic look forward at 2025 has to acknowledge some ongoing challenges. “Affordability and interest rates remain factors no matter what happens with election changes.”
Facing those challenges and other long-term issues, such as labor shortages and price volatility, will require continued vigilance from builders and developers. “In that respect, 2025 will be like any other year. It’s always a matter of assessing those outside factors, knowing our own market and expertise, and making business decisions accordingly,” she says.
The past two years have remained fairly steady and even saw some growth as 2024 ended. Kimberley says, “Closings were actually a bit better than expected by the end of the year, thanks in part to some stale inventory that sold. Interest rates didn’t drop as quickly as we’d hoped. But build times improved, and contractors don’t seem to be as overbooked as they have been for a number of years.”
Although Kimberley would like to see rates drop a bit more, she says other economic factors, some of which could be exacerbated by proposed new economic policies, are likely to have effects longer-term. “I know some people are hopeful that the change in President will mean a more favorable economic climate. However, much of what happens in the market is the result of multiple factors and years of policy, and things don’t change that quickly.”
Kimberley echoes what other financial experts have said in recent weeks, especially in relation to proposed tariffs. “Supply issues have finally started to somewhat stabilize. There’s some concern that continued price volatility, along with proposed tariffs and immigration policy changes, will actually create an even more challenging market long-term.”
“BUILD TIMES IMPROVED, AND CONTRACTORS DON’T SEEM TO BE AS OVERBOOKED.”
In light of those factors, Kimberley Development continues its efforts to address affordability and home ownership. The company will break ground on another row-house project of townhomes and remains cautious about overbuilding. “I’m optimistic about housing and lot demand in 2025,” she says. “Rates are likely to come down a bit more, and that’s going to be good for both buyers and sellers.”
Because single-family homes will always be the strongest segment of the local market, finding ways to meet that demand affordably continues to be a priority. “Working with communities to ensure favorable zoning laws is essential if we’re going to be able to accomplish that. It is possible to create attractive, affordable neighborhoods if builders and community leaders work together.”
