Story By Nathan Drew, Broker/Owner of Drew Realty | February 2026
Ya know… for the most part, I’d say 2025 was a pretty good year. I bit the bullet and had surgery on my shoulder, which had been bothering me since high school. I podiumed for the first time in a triathlon (just my age group, of course)! I introduced my dad to RAGBRAI, and after that experience, I’m confident that neither of us will miss a year of it for the rest of our lives. I got #TheDrewGirls reading… a lot! They can’t put a book down! I understand that’s a weird flex, but coming from a guy who didn’t finish a book cover-to-cover until his final year of grad school, I’d say they’re doing pretty well.
As life goes, 2025 wasn’t all good. We lost some local legends in the Des Moines real estate world. Bill Knapp, war hero, philanthropist, and founder of Iowa Realty passed away at the age of 99. I’ve said it before and I’ll say it again; Iowa Realty is an institution. “Iowa’s Largest”. I still get goosebumps whenever I talk about it. Real estate has always been a “relationship business”, and I’d argue that the relationship between Bill Knapp (real estate brokerage and land development) and John R. Grubb (homebuilder) had more of an impact on the growth of the Des Moines metropolitan area than any other relationship, before or after.
We also lost LeMar Koethe. If you don’t recognize the name, you’d recognize “The Spaceship House” in Urbandale. LeMar cut his teeth selling pots and pans, door-to-door. He got wealthy doing it. From there he started Seven Flags Fitness, which was considered to be a pioneer in the metro as one of the first large-scale health clubs. Then he started buying land, strategically, in the path of development. He’d figure out where infrastructure was (or was going), then he’d go door-to-door, talking to landowners. He’d buy the ground for a little bit more than “farm ground prices”, and then he’d wait for development to get there and sell the land to developers. One of the original “land bankers”. A true visionary. He accumulated a portfolio of over 9,000 acres of “development ground”, in one lifetime, without inheriting it. That is truly amazing.
While 2025 was strong on a personal level, local new construction, lot, and land data tell a more cautious story.
First up, 2025 new construction single-family and townhome permits, down 10% from 2024.
Next, 2025 new construction, single-family and townhome sales, down 5% from 2024. Affordability continues to be an issue in the market.
Fourth Quarter of 2025, new construction sales, down 9% when compared to 2024.
2025 lot sales, down 18% from 2024. Lot sales are a leading indicator. When builders slow their lot purchases, it typically reflects caution about future absorption and new construction starts.
Finally, Fourth Quarter of 2025 lot sales. Down 38% from a year ago. “Fourth Quarter Lot Sales” can be a fickle measurement. However, a 38% decline shouldn’t be ignored. In some form or fashion, it reflects real hesitation among builders.
These numbers are a bit depressing, but there is something positive that I found in my research. Multifamily (apartments)—the belle of the ball! In 2024, there were 937 permits pulled for multifamily. In 2025… a whopping 2,347 permits! A 2.5X jump in one year! This is likely due to a number of factors, including the development community recognizing that “people need a place to live, and “for sale” new construction has been slow”, paired with pent-up pipeline, financing timing, and potential incentive deadlines. I look at the building of new projects as intention. Not all projects will be successful. While I know that the Des Moines metro needs the housing, if these multifamily numbers keep up, we could see supply pressure in 2026 and even into 2027.
Something else that is positive going into 2026… it’s an honor to say that I’m one of the agents that has been hired to work on the LeMar Koethe land portfolio. I’m smiling as I write this. In my line of work, a portfolio like this is a once in a career opportunity. I haven’t been this excited since my Iowa Realty days, working on the infamous Michael’s Landing in West Des Moines and luxurious Prairie Trail in Ankeny. In a general sense, there seems to be some uncertainty in real estate right now, but for what it’s worth, I’m optimistic for 2026. I guess in this line of work, you have to be.
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.