During the recent City Council work session on January 13, 2025, in Des Moines, significant discussions centered around the city's housing market challenges and the impact of older, neglected homes on property values and affordability. Council members and city officials highlighted that approximately 45,000 smaller, older homes are contributing to a disparity in property values, which are currently at 60% of the county average. This situation is exacerbated by the presence of nearly 10,000 households earning under $50,000, many of whom are cost-burdened renters.

The conversation emphasized the dual nature of the housing market and affordability issues, suggesting that while older homes provide some level of affordability, they also present challenges when it comes to upgrading and maintaining property values. The council noted that the financial implications of these older structures could amount to a staggering $1 billion in potential ad valorem deficit, which reflects the lost revenue that could be generated if these properties were upgraded or better utilized.

Council members acknowledged the competitive landscape with surrounding suburbs, which complicates the city's efforts to address housing disparities. They discussed the need for a holistic approach to housing that transcends jurisdictional boundaries, recognizing that housing is fundamentally a societal issue. However, they also pointed out the "free rider dilemma," where the city disproportionately bears the burden of providing housing solutions that benefit the entire county.

Looking ahead, the council expressed optimism about potential strategies to leverage private investment to address these housing challenges. They indicated that a significant portion of the $1 billion issue could be addressed through public-private partnerships, aiming to minimize the financial burden on the city while improving housing conditions and property values.

The discussions at this work session underscore the urgent need for strategic planning in Des Moines' housing market, as city officials seek to balance affordability, property values, and the overall well-being of the community. The council's commitment to addressing these issues reflects a proactive approach to fostering a more equitable housing landscape in the city.