The number of building permits issued for the construction of single-family houses and townhome units slipped to 3,226 in 2025, down 5.5% from the previous year, data collected by the Home Builders Association of Greater Des Moines shows.

The number of permits issued in 2025 is the fewest since 2023 when 3,470 were issued and 31.5% fewer than the 4,712 issued in 2021.

Nationally, home construction ramped up more than expected in November and December as builders began preparing for improved buying conditions in 2026, Ben Ayers, a senior economist for Nationwide, said. While there was little change in housing starts between 2024 and 2025, “the positive momentum shown in the fourth quarter could carry into 2026 with mortgage rates at the lowest levels since 2022.”

Poor winter weather conditions over much of the nation in early 2026 likely delayed construction projects but “the sector should gather steam over 2026 as conditions turn more favorable,” Ayers said. “The consistent decline in mortgage rates should support home construction activity over 2026 with single-family housing starts projected to shift into a faster gear by mid-2026. Overall, 2026 is likely to be a transition year for the housing market, setting the stage for a stronger 2027 and beyond.”

Central Iowa homebuilders are optimistic that an uptick in new construction will occur in 2026, Chris Pickard, owner of Sage Homes and president of the Home Builders Association of Greater Des Moines, told the Business Record in December. “Most of the builders I’m talking to seem to be cautiously optimistic that things are going to start to uptick” in 2026.

Some Des Moines area city officials expect the number of new home starts in 2026 to be similar to the past couple of years.

“I’m anticipating that we’re just going to hold firm with our normal growth,” said Luke Parris, Norwalk’s community development director.

Parris said there are well over 200 lots available in Norwalk on which to build homes. In addition, he said he expects three to four new single-family plats to be submitted for city review in 2026.

“I don’t think we’re necessarily going to slow down, but I also don’t think we’re going to pick up and have a boom either,” Parris said. “The finance sector is going to dictate a lot of what happens.”

Cody Christensen, Des Moines’ development services director, wrote in an email that market demand will dictate the number of new residential permits the city issues in 2026. He wrote that “low-density residential construction typically ramps up in April and May.”

Christensen estimated that the city has “hundreds” of buildable lots available on which to build. Des Moines “has a diverse mixture of available lots in existing neighborhoods and new subdivisions in greenfield developments,” he wrote. 

More online: View an interactive map showing the number of residential building permits issued in 17 communities and Polk County each of the past five years. The information also includes the average permit value by community. Also, view a spreadsheet of the building permit data.