Des Moines building permits hit all-time record
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Des Moines' building permit values surpassed $1 billion in the fiscal year that ended in June — the highest on record, even after adjusting for inflation, according to data presented Monday to the City Council.
Why it matters: The surge in building permit values — roughly double the amount from the previous year — indicates developers' confidence in Des Moines despite higher interest rates and federal-level uncertainty, the city's Development Services director, Cody Christensen, told the council.
Zoom in: DSM's annual total building permit values for both private and public investments have risen each year since the pandemic, from about $375 million in FY 2020 to just over $500 million in FY 2024, based on data presented to the council.
- The FY 2025 increase was partly driven by the ongoing expansion at Des Moines International Airport and the 515 Walnut Tower, a $148 million 33-story downtown residential project expected to be completed in 2027.
Yes, but: Even excluding the large projects, permit values show consistent growth, which Christensen tells Axios can be partly attributed to the diversity of construction, including the conversion of downtown office space into residential units.
- As of last week, 1,845 new dwelling units were under construction across the city, a rate Christensen described as robust.
State of play: The city is working to simplify business procedures for developers in Des Moines, which Christensen said has contributed to the recent record.
- Of 24,000 inspections the city performed in the last fiscal year, almost all were conducted within a day of request, according to data presented to the council Monday.
- City staff members are also now allowed to handle approval processes for some historic projects via administrative reviews rather than going through what can be an extensive board and City Council approval process.
Reality check: DSM is not immune to cyclical patterns in construction.
The big picture: Nationwide, construction spending in June fell to an annual rate of $2.14 trillion, a 2.9% decrease compared with last year, according to Census data.
What's next: In the coming months, the city will focus partly on attracting development in the new downtown Market District and across the 300-acre industrial park on the southeast side.
What we're watching: An upcoming review of Des Moines' property tax abatement policies in the coming months could influence where and how fast new housing and commercial projects become possible.