Cost of Living in Des Moines, IA: Housing, Utilities and Taxes
Des Moines costs run below the national average, mostly because housing is cheaper. The exact figure depends on the source, so this guide explains what each estimate measures.
The cost of living in Des Moines, IA is about 17% below the national average, according to two separate estimates. [1][2] That gap can matter if you are deciding whether a move or a raise will stretch your budget. For a closer look, read Des Moines vs Omaha cost of living — which stretches paychecks?
Listed figures put median rent at about $1,000 a month and a median home price at about $333,819. [1] Another source puts the median home value far lower, at $211,651, so home price figures differ widely. [3] Check which measure each number uses before you set a budget.
This article walks through housing, utilities and taxes, and explains each figure in plain terms so you can compare it with your own income and spending.
What changes the cost of living in Des Moines?
The sources agree that Des Moines costs less than the national average, but they size the gap differently and measure housing in different ways. The table lists each source's figures with its scope, so you can see where each number comes from.
The overall gap is reported as 17 percent by two sources [1][2]. The local partnership reports a smaller gap, 10 to 15 percent below the national average [4]. Both figures are published, so the honest answer is a range, not one number.
Extra Space ranks Des Moines 14th most affordable of 483 cities in its database [5]. That ranking compares Des Moines with other cities on its own list, so it does not tell you what you will pay.
Why the home figures differ
A median home value and a home price are different measures, and that is why the numbers look so far apart. A median is the middle value across many homes in an area. A single home price is one figure for one property or sale.
Compare them only after you check the date and scope on each page.
What can a household expect to spend at different budgets?
Your monthly cost depends on whether you rent or buy, and each path has a reported figure you can compare against. For a single renter, the median rent is the starting point. To go further, see Cost of Living in South Bend, Indiana: Housing, Rent and Budgets.
Renting at the median
The median rent in Des Moines is listed at $1,000 a month [1]. For a single renter paying that amount, rent is the largest fixed bill, and it is due every month before utilities.
Use that figure as a yardstick for any unit you consider. If a place rents for more than the median, the difference has to come out of your income or savings each month. If it rents for less, you have more room for utilities, transportation and savings.
Rent is only one line in your budget. Add utilities and other monthly costs before you decide how much rent you can carry.
Buying at two price points
U.S. News reports a median home value of $211,651 for Des Moines [3].
These two figures measure different things, so treat them as a range rather than one price. Compare listings at your own budget before you choose neighborhoods.
Reading the living wage
MIT's living wage estimate for Des Moines-West starts at $22.80 an hour [6]. It is a benchmark for what a household needs to cover basic expenses, not the going pay for a job.
The estimate changes with family size, and values vary by location and family size [6]. Find the row that matches your household, then set it beside your rent or mortgage to see whether your expected income covers the basics.
Which costs show up beyond rent and a mortgage?
Energy and phone bills
Energy is the utility bill you will notice most each month. One estimate puts the energy bill at about $175.87 a month in Des Moines [1]. Treat that as a starting point, not a quote, because your actual bill depends on the size of the home, how well it is insulated, and whether you heat with gas or electricity.
The same monthly estimate also includes phone and other utilities [1]. Because it is one combined figure, add your own phone plan and internet service to your budget as separate lines.
If you rent, check your lease to see whether water, trash, or internet are covered by the landlord. If you own, you pay each of these bills directly, so the estimate works best as a benchmark against the bills you already receive. Heating costs often rise in the coldest months, so a single monthly average can understate your winter bill.
Property tax and local fees
Property tax and local fees are separate from the utility estimate, and local government sets them. The estimate does not include current rates, so look them up on the official county and city websites before you budget for a home. Rates can change from year to year, so use the most recent figures you find.
Ask the seller or listing agent for the most recent tax bill on any home you tour. Once you have the yearly property tax amount, divide it by 12 to get a monthly figure. Add that to your mortgage payment, insurance, and utilities to see the full monthly cost of owning, then compare the total with your take-home pay.
Where can you save when living in Des Moines?
Compare every rent you see against the citywide median before you choose a neighborhood. One listing means little until you know whether it sits above or below what most renters in Des Moines pay. Use the median as your benchmark, then check each neighborhood against it.
Pick two or three neighborhoods you like and collect the rent for a unit with the same number of bedrooms in each. If one is consistently above the median, ask what the extra money buys, such as a shorter commute, newer appliances, or included parking. If one is well below, ask what the trade-off is, such as distance from work or older buildings.
Energy bills are the cost people most often underestimate, and they differ from home to home. Before you sign a lease or make an offer, ask the landlord or seller for the utility bills the current occupants paid over the last twelve months. Request the winter and summer months too, because heating and cooling costs can swing sharply between seasons.
Two apartments with the same rent can cost very different amounts to run. One may have electric baseboard heat while the other has a gas furnace. Ask which utilities you would pay directly and which are included in the rent.
If you are buying your first home, look at the resources the Greater Des Moines Partnership lists for buyers. Its cost of living page ranks Des Moines as the #3 Best City for First-Time Homebuyers [4]. Use that ranking as a reason to ask questions, then compare any program's terms with your own budget and savings. It also helps to read Cost of Living in Baton Rouge, LA: What Households Spend.
So is Des Moines affordable for you?
Des Moines costs about 17 percent less than the national average, according to two estimates [1][2]. A third estimate gives a smaller gap of 10 to 15 percent [4]. Each estimate uses its own scope and date, so the numbers will not match exactly.
Compare the housing and utility figures with your own income and needs. Subtract the rent or mortgage you would pay, plus the monthly energy and phone bills for that home, from your take-home pay. If enough is left for savings and other costs, the averages fit your situation.
Next, check current rents, home listings and utility rates for the neighborhoods you are considering. Prices change, so use today's numbers rather than these estimates.