Man, I’ve had a good summer. I mean, a really good summer. The kind of summer where I’ve been able to do just about everything I’ve wanted. And realistically, isn’t that what every entrepreneur hopes for? The freedom to set your own schedule, do what you want when you want, and—best of all—not have to answer to “The Man”? Ugh…
I started Drew Holdings, Inc., my holding company, back in 2005 when I was 19. At that time, I probably would’ve said freedom was the goal. Now, 20 years later, while I still have no interest in reporting to “The Man,” I’ve come to really value consistency. Not the “Plain Jane, boring” kind, but the steady, reliable kind that doesn’t thrill me—but doesn’t burn me either.
And if I may say so myself—what an industry to be in when you value consistency! That said, I’m confident I’m not the only one who’s been doing what they want this summer. The local lot, land, and new construction market has been pretty slow, and that’s clear when I look at the data.
Let’s start with Second Quarter Lot Sales going back to 2018. Compared to a year ago, lot sales have softened slightly—down just 1%. Of the 705 lots that changed hands in Q2 of 2025, roughly 37% were sold by land developers to their own affiliated building entities. In other words, not true arm’s-length transactions. That’s significant.
Why? Because most subdivisions in our market are tied to debt. As I’ve mentioned in past articles, land development is capital-intensive, and the interest costs to carry those loans are steep. While not always the case, often these lots are being built on not due to strong market demand, but because the developer-builder needs to keep the subdivision moving forward to service the debt.
The next chart shows single-family and townhome building permits pulled between April 1 and June 30 of the given year. For 2025, Q2 permits fell below pre-pandemic levels.
Following that is new construction sales data for the same period. Sales are down approximately 12% compared to Q2 of 2024.
Lastly, I included a new metric I haven’t tracked before. I wanted to see if the market slowdown I was feeling was just a siloed effect from my own business—or something broader. Turns out, it’s not just me.
I reviewed my lot inventories and tallied residential final plat recordings from Q2 of each year, dating back to 2021. In Q2 of 2024, 16 final plats were recorded. This year? Only 9. That’s telling. And it raises a bigger question: When the market heats up again, will we have enough finished lots in the ground to meet demand?
What a summer it’s been
I’ve had time to dive into reading—investment strategy, economic theory, even body language. I’ve stayed active with triathlons, road races, and yes, even RAGBRAI. Best of all, I’ve spent more quality time with my wife and four daughters. We’ve logged plenty of hours at the lake, I’ve coached the girls on cycling, and even got my oldest, Veda, running and hitting the stationary bike beside me.
Most importantly, I’ve been more intentional about being present—being where my boots are at. I tend to lose sight of that when life gets hectic.
With that, here’s hoping my boots find themselves standing on a few more tracts of development land in the near future.
Nathan Drew, Broker/Owner of Drew Realty, a lot and development ground brokerage, has been in the business of lot and land acquisition and disposition since 2008. He keeps an ongoing inventory of all vacant lots and land throughout the Des Moines Metropolitan Area, and puts together a quarterly email blast with an interpretation of the metro’s lot market. Email Nathan to join his email blast list at Nathan@DrewRealtyUSA.com and follow him on Twitter @DrewRealtyUSA, on Facebook @DrewRealty, and on Instagram DrewRealty.