Story By Nathan Drew, Broker/Owner of Drew Realty | August 2026
This summer has been pretty hot and windy, but I’ll take it. I absolutely love being outside. Of course, I enjoy doing activities outdoors with Staci and #TheDrewGirls, but I also appreciate being able to get my workouts done outdoors. Running, biking, open-water swimming, hiking… all of it. According to my Strava account, I’ve logged just under 1,000 miles on my bike so far this summer… an 81% increase compared to last summer. It’s a strange thing to say, but being outside and doing physical activity reminds me of being a little kid, and for whatever reason, it really makes me feel alive.
Similar to cycling, in real estate, headwinds are often one of the most challenging things one has to take on. Let’s take a look at some residential lot and new construction numbers from the Second Quarter of 2026.
- Second Quarter Lot Sales: Lot sales seem to have remained consistent, year-over-year, for the last couple of years. While well below the pandemic-era peak, the lot-sales market seems to have stabilized, and the new “normal”, for this time of year, when it comes to lot sales, seems to be just over 700 sales.
- Second Quarter New Construction Permits: New construction permits (single-family and townhomes) in the second quarter have fallen approximately 9% year-over-year. Permits are down approximately 43% from the 2021 peak. It’s not outlined in the graph, but much of the decline in permits was concentrated in new townhome construction, while single-family was more resilient.
- Second Quarter New Construction Sales: There is a slight increase in new construction sales year-over-year. Something that jumps out at me is comparing New Construction Sales and New Construction Permits. The gap is only 17 homes. These numbers being nearly identical tells me that the new construction market has largely worked through the excess production from the post-pandemic boom. This looks to be a healthy equilibrium.
- Second Quarter Final Plats: While not something I normally track, I looked at second quarter final plats in Polk, Dallas, and Warren Counties (residential plats). 22 new plats compared to 9 a year ago. While this shouldn’t be interpreted as a direct measure of lot production, as the number of lots in each plat can vary significantly, this still tells me that land developers are moving forward on projects and bringing on more lots, despite the slowdown in new construction permits. The Des Moines metro will have lots ready to build on if lower interest rates eventually improve affordability and buyer demand.
Together, I think these graphs show a lot and new construction market that is slowing in production, but not in overall confidence. Builders are selling homes and purchasing lots at a steady pace, while land developers continue to move projects forward. This is what a balanced market looks like.
Any cyclist knows that riding into a headwind doesn’t mean you stop moving. It just takes more effort to maintain your pace. Affordability, interest rates, and elevated construction costs continue to create headwinds for the Des Moines metro housing market. Builders and developers may not be moving at the same speed we saw a few years ago, but they are still pedaling and moving forward. Eventually, the market will get a tailwind again. When it does, I’m confident they will be ready.
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.