Cost of Living in Des Moines, IA
Des Moines is about 13% cheaper than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Des Moines at a Glance
On the median income of $67,297, state income tax is roughly $2,557/year.
Sources: Census ACS 2024, Tax Foundation.
Des Moines is one of America's most underrated cities. The state capital and insurance industry hub has transformed its downtown, built a food scene that earns national attention, and maintained housing costs that make homeownership a realistic goal for median-income households. The median home price of about $220,000 is roughly half the national median. Iowa's new flat 3.8% income tax makes the financial picture even more attractive.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Des Moines
The job market in insurance and financial services (Principal Financial, Nationwide, EMC Insurance, FBL Financial) provides white-collar stability. The East Village has become a vibrant dining and nightlife district. The Des Moines Art Center's collection is surprisingly strong. The Greater Des Moines Botanical Garden and Pappajohn Sculpture Park add culture. The cost of living is about 10.5% below the national average.
Neighborhoods
The East Village is the trendy dining and shopping district downtown. Sherman Hill has Victorian homes with character. Beaverdale is a family neighborhood with its own Main Street. Ingersoll and the western suburbs (West Des Moines, Waukee) offer suburban family living. Jordan Creek area in West Des Moines has retail and newer homes. For affordable options, the south side and east side offer the lowest prices.
Things to Consider
Iowa winters are cold and long. The landscape is flat. The city is smaller (215,000 city, 700,000 metro) than metros that offer comparable amenities. Property taxes at about 1.52% are above the national average. The cultural diversity is improving but more limited than larger metros. The driving distance to the nearest major metro (Kansas City, 3 hours; Chicago, 5 hours) creates geographic isolation.
Frequently Asked Questions About Des Moines
For value-conscious professionals and families, excellent. The insurance and financial services industry provides stable, well-paying careers. Housing is affordable (median $220,000). Iowa's flat 3.8% income tax is competitive. The food scene, parks, and cultural amenities are strong for a metro of 700,000. The honest trade-offs are weather, geography, and scale.
Insurance and financial services dominate. Principal Financial Group, Nationwide, and EMC Insurance are among the largest employers. State government, healthcare (UnityPoint, MercyOne), and education (Drake University) add diversity. The tech sector is small but growing. The job market is stable rather than dynamic, which is either reassuring or limiting depending on your perspective.
Cold. January averages about 31°F high and 14°F low. Wind chill values below zero are common in winter. Snowfall averages about 35 inches per year. The cold season runs roughly November through March. Iowans are matter-of-fact about winter and well-prepared for it. Summer is warm and pleasant, with the Iowa State Fair in August being a cultural highlight.