Area builders offer wisdom as the new year begins.
Story by Tracy Dickinson | January 2026
At the end of 2024 the builders interviewed for BUILD’s annual predictions story shared an optimistic but realistic perspective heading into 2025. As we look back on the year and prepare for 2026, our local experts bring a similar message.
Other areas of the country may be experiencing more radical fluctuations. But Iowa—and the Des Moines metro in particular—saw a steady, though slower than usual, pace over the past twelve months. And that is setting the tone for expectations in 2026.
As the perspectives that follow indicate, these professionals aren’t entering the new year with the gas pedal pressed to the floor. They’re holding steady and looking forward to a turning point before the year is out.
Kevin Johnson
President | Accurate Development
“We had a good 2025 despite rates not dropping as quickly as anyone expected. Even half a point always helps, so what little change we saw kept things somewhat steady,” says Kevin Johnson of Accurate Development.
Tariffs, too, did not follow expectations, which was good for building costs. “Prices were not as affected by that as they could have been,” Johnson says. “Statistically, you can expect prices to go up about 5% a year, which is all we saw in 2025. So overall, tariffs had less of an effect than everyone feared.”
Johnson says another factor that has helped maintain that steady pace is the amount of equity most buyers have available.
“That’s true of American homeowners in general, but custom-home buyers have usually built up a significant amount of equity over the years. And that’s a real benefit to our clients, especially when interest rates aren’t moving as much.”
Looking ahead, Johnson expects 2026 to roll out much like 2025, even making a slight turn for the better. “We’re on the same path as last year,” he says. “We were optimistic enough about expectations for 2026 that we started some projects this past fall that will have lots ready in the spring.”
Accurate has several other developments underway around the Metro, with new plats coming on market throughout 2026. “We’re on our fourth plat in the Acadia Development, plat three at Bentley Ridge, and we’re excited about a brand-new development in West Des Moines that will have lots available by midsummer,” Johnson says.
The Ridge at Maffitt Lake development covers more than 200 acres on the far south edge of the city within the West Des Moines School District and will offer a variety of lot sizes and amenities for residents.
“I’m encouraged about what’s happening on the federal level financially,” Johnson says. “I think the Fed will do whatever they can to get the market moving more. And a little bit of movement with interest rates will kickstart more of the resale market, which affects the custom market, too.”
Johnson says builders in other areas of the country are struggling much more than those in Iowa and the Midwest, and that’s historically been the case.
“There are a lot of things out of our control when it comes to market factors and the economy,” he says. “You control what you can and focus on what you’re good at.”
Although there are areas of the country that have seen much bigger peaks, those regions tend to see much lower valleys when the housing market slows down.
Johnson says, “Iowa is as stable a market as anywhere in the country, and it’s a great place to build houses.”
Kevin Johnson, President
Accurate Development | AccurateDevelopment.com
Ryan Kauffman
Director of Homes | Caliber Homes
As 2025 wound down, Caliber Homes’ Ryan Kauffman says a strong fourth quarter helped the builder bring the year to a positive close.
“There were no real surprises,” he says. “We anticipated activity would be much like the year before. And the custom home segment, which is a big part of our business, has held steady, so that has been good for us.”
Caliber also stayed the course on development projects, making only minor adjustments to schedules. The company did slow the pace on spec home starts, but didn’t pull back completely.
Like the other builders profiled, Kauffman says there was less movement in interest rates than predicted. Although sales were fairly steady, the industry didn’t experience the increase in activity most had hoped to see.
Kauffman says any interest rate drops as the new year gets underway will not only encourage sales but will boost buyer confidence. “That is probably one of the key challenges,” he says. “Buyer confidence has been low for the past year or so with concerns about rates, tariffs, and inflation.”
As that uncertainty decreases, Kauffman says he is encouraged for what’s ahead in 2026.
“The balancing of interest rate pressure and price pressure will encourage activity in the resale segment for those buyers who’ve been watching and waiting. And that will keep new construction activity steady.”
He says, “That leveling of pressure between interest rates and costs, which we started to see at the close of 2025, is a positive indication for the year ahead.”
Caliber Homes, like Ground Breaker, invested in its team over the past few years and is even better prepared for the uptick Kauffman expects in 2026. “We made our team a priority, equipping them to better meet our clients’ needs and better serve them. And we continued development on projects that we’re now ready to bring onto the market.”
Caliber Homes, a division of Caliber Company based in Ankeny, continues to invest in projects in that community, as well as Waukee, where a new Caliber development is underway. The Kettlestone Central neighborhood features townhomes for sale, apartment and townhome rentals, and nearly 100,000 square feet of retail and entertainment projects.
“We’re also expanding our market farther north,” says Kauffman, “with a development in the Gilbert/Ames area. Both projects are geared toward mid- to high-end custom homes.”
After the dramatic swings of the past five years, the slow but steady activity of 2025 is not a bad sign, according to Kauffman. “The market is poised for an uptick, and we’re looking for 2026 to be a turning point in that direction,” he says.
Ryan Kauffman, Director of Homes
Caliber Homes | CaliberHomes.com
Kalen Ludwig
Director of Sales & Marketing, Partner | Ground Breaker Homes
“Nothing really dramatic happened in 2025,” says Ground Breaker Homes’ Kalen Ludwig. “But at the same time, activity stayed pretty steady.”
Although everyone anticipated more change in interest rates, actually that nearly flat activity may have set the pace for the construction market. “We kept expecting the Fed to cut rates, but there were fewer than predicted,” Ludwig says. “By the end of the year people who had been on the sidelines were beginning to see that there was nothing to be gained by waiting since rates weren’t changing much.”
For Ground Breaker, the custom market was strong in 2025. Ludwig anticipates that to be the case in 2026 as well. “Custom-home buyers usually have more equity and are less interest-rate driven,” she says. “They want to make their new home their own, and they know they can refinance down the road if interest rates drop.”
Ludwig says resale listings picked up as the fourth quarter of 2025 began, which was another indication that the custom home segment is likely to remain strong during the next year.
“More resale inventory is a good sign that the market is ready to pick up. New construction was slightly lower during that same quarter, reflecting builders’ caution throughout the year. But most builders seem to believe that 2026 won’t see major changes, so the pace of activity should be similar to 2025.”
As the year wound down, interest rates inched down slightly, another encouraging sign for 2026, which Ludwig says will help in meeting the challenge of rising costs. “Controlling costs is probably the biggest challenge for builders. Everyone talked about the potential effects from tariffs, but those seem to have been delayed. We may see more effects from tariffs and inflation in 2026, however, as we see which tariffs are staying in place and which aren’t.”
Ground Breaker Homes anticipates a bit of an uptick in activity, especially in the Warren County and Norwalk areas of the metro where the company has been focused.
“Even at the end of the year, we saw interest picking up, and there wasn’t a ton of inventory, so new construction should see more activity as we enter 2026,” Ludwig says. “It’s been more than two years since we saw a significant change in the level of activity. That being said, the Des Moines metro is still a growing, promising market and great place to build homes.”
Ludwig says the slower but mostly steady pace over the past couple of years allowed builders to refocus while still working consistently. “At Ground Breaker, we took the opportunity to develop our strengths further, to emphasize the areas where we excel—mid-level luxury custom homes with architectural character. We’re working on honing our craft and putting all those pieces together to draw clients to our homes.”
Kalen Ludwig, Director of Sales & Marketing, Partner
Ground Breaker Homes | GroundBreakerHomes.com
Jenna Kimberley
Chief Executive Officer | Kimberley Development
“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.”
Jenna Kimberley, Chief Executive Officer
Kimberley Development | KimDev.com
Chris Pickard
Owner / President | Sage Homes
Like the other builders, Chris Pickard of Sage Homes says 2025 was “more of the same.”
“About midyear, we were a bit below expectations, so we did some readjusting, and we worked with a slightly more-reserved budget in case sales weren’t as strong as anticipated,” he says.
Activity picked up a bit with a modest bump as the year came to a close. Pickard says that was one of several positive indications for a good 2026. “We saw an increase in traffic, and our end-of-year conversations with vendors indicate prices will be holding or increasing only modestly. With the Fed talking about more interest rate cuts, that’s encouraging for helping make house payments more affordable.”
Another good sign is development activity. “There’s good lot availability with developers not overextended, so I expect land and home prices to be comparable to 2025. And if interest rates drop a bit, activity for entry-level buyers may improve.”
As outgoing president of the Greater Des Moines HBA, Pickard says he had a close-up view of the efforts the local and state HBA leaders have been making regarding legislation.
“We’re seeing some clear, positive results because of the work our HBA has been doing. Affordability has been a concern for a while. The property tax bill that’s in the works right now will have wide-reaching effects on that. It’s a very complicated bill with a lot of layers. But everyone involved is really invested in a solution, and we hope to see that process completed in the next session.”
Pickard also sees buyer confidence as a challenge for builders in 2026. “Buyers have been hesitant for the past couple of years, and they still seem to be in a wait-and-see mode. But in light of the global economy, Iowa has remained stable, and builder optimism will hopefully carry over to buyers.”
One way Sage Homes is addressing the challenges of the 2026 market is by offering a robust product line with different features and different price points to serve a range of buyers.
“We have several new plans we’re introducing this year,” Pickard says. “Some of these new designs address the needs of buyers who are in the market for a larger home with different features than some of the homes we’ve offered in the past. And other new plans are very small ranches designed for buyers interested in a new home but working with a smaller budget. Those mid-market buyers are the hardest to serve, and we are looking at ways to better serve them.”
Ultimately, Pickard says 2026 will likely bring more of the same, but with a turn toward modest gains.
Chris Pickard, Owner / President
Sage Homes | BuildWithSage.com