Why the Midwest’s Rental Competitiveness Is a Bullish Signal for Des Moines Investors

Recent national rental data underscores why the Midwest continues to stand out as one of the most compelling multifamily markets in the country. According to RentCafe’s 2025 rental competitiveness rankings, the Midwest earned a score of 80.3, placing it among the most competitive regions nationally, effectively tied with the Northeast and ahead of major coastal and Sun Belt markets.

This result speaks directly to the strength of the region’s rental fundamentals. Competitiveness in this context reflects several key drivers investors care about most: consistent renter demand, favorable lease-up velocity, and stable tenant retention. Rather than benefiting from short-lived population booms or unsustainable development cycles, Midwest markets are being supported by structural affordability advantages and measured supply pipelines.

For Des Moines specifically, this data reinforces what we continue to see on the ground across the Hammer & Hampel portfolio. Rental levels remain both healthy and attainable, striking an important balance that drives steady absorption. Compared to higher-priced coastal metros that are increasingly experiencing demand elasticity and widening affordability gaps, Des Moines continues to offer workforce and middle-income renters quality housing options at sustainable price points. This dynamic supports durable occupancy fundamentals and underpins the long-term outlook for cash flow performance even as properties cycle through operational improvements.

Equally important is the region’s supply profile. While many Sun Belt and coastal markets are navigating the after-effects of aggressive new construction cycles, overall competitive pressure in Midwest markets remains manageable relative to those regions. In markets like Des Moines, where household formation remains steady and job growth is diversified, this balance continues to favor existing properties and supports organic NOI growth driven by occupancy gains and operational execution rather than outsized rent spikes.

For investors, this environment highlights why Midwest multifamily remains a stable, income-oriented allocation with long-term upside potential. Demand stability coupled with affordability creates the foundation for reliable income generation, while measured rent growth allows properties to compound returns over time as operations are optimized. This is particularly well-suited to portfolios like Hammer & Hampel’s, where the focus is on value-oriented communities serving the core of renter demand and benefiting from hands-on asset management strategies.

As the 2025 landscape unfolds, markets with sustainable fundamentals and disciplined growth patterns are increasingly well-positioned to outperform. The Midwest’s top-tier competitiveness ranking affirms that Des Moines remains a market built not on short-term hype, but on durable demand, attainable housing economics, and long-term income stability. These characteristics continue to guide our investment strategy as we work through the current operational cycle and position our assets to deliver consistent performance for our partners across varying market conditions.

(Sources: CRE Daily, Rent Cafe)