Des Moines Approves New Housing Developments

The city is providing tax incentives to help developers build 38 new residential units across two project sites.

Updated on Oct. 20, 2026 in Commercial

Bold vector editorial illustration of a classic brick apartment building facade, reflecting urban development in Des Moines. — The Des Moines City Council approved tax incentives to revitalize two local housing projects, adding 38 new residential units to the city. AI Illustration. Upload story photo >

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Do you support the use of city tax incentives to fund private real estate development projects?

The Des Moines City Council has approved development agreements for two new housing projects, including the $5.8 million renovation of the historic University of Commerce building. These developments aim to modernize local real estate and add 38 total new residential units to the city.

Why it matters

These city-backed projects use Tax Increment Finance incentives to transform underutilized properties into higher-value assets, aiming to boost the local property tax base. The city expects the University of Commerce site alone to increase in value from $145,000 to $1.95 million following completion.

The city is providing $338,000 in Tax Increment Finance incentives over 18 years for the University of Commerce project and $330,000 over 16 years for the Seventh Street development. The Commerce building project, costing $5.8 million, will create 14 residential units and 2,000 square feet of retail space.

The players

Des Moines City Council

The local governing body responsible for municipal zoning, approving urban renewal agreements, and managing city tax incentive programs.

615 Euclid LLC

A private development entity tasked with managing the $5.8 million renovation of the historic University of Commerce building.

Neighborhood Development Corp.

A development organization responsible for building 24 residential units on Seventh Street.

The details

The developer, 615 Euclid LLC, plans to convert the 102-year-old University of Commerce building into 12 one-bedroom and two two-bedroom apartments. Meanwhile, the Neighborhood Development Corp. will oversee the Seventh Street project, which features two 12-unit residential buildings at a total cost of $7.2 million. The tax incentives are designed to bridge the gap between development costs and anticipated market returns, leveraging public funds to revitalize properties like the site where the Highland Apartment building previously stood.

1924: The original University of Commerce building was constructed.
2023: The Highland Apartment building was demolished.
October 19, 2026: The Des Moines City Council approved both development agreements.
End of 2026: Construction on the University of Commerce building may begin.
October 2027: Residential tenants could move into the completed Commerce project.

Money Landscape

These projects sit within the city's broader Tax Increment Finance incentive policy framework, which aims to stimulate development in neighborhoods showing new economic momentum. The move reflects a continued municipal strategy of using public-private partnerships to renovate historic or vacant sites.

Residents should track how these residential additions impact local housing supply and neighborhood rent trends. If you are interested in future housing availability, consult a local real estate professional to understand the impact of new unit delivery on area competition.

The takeaway

These city-backed residential projects are set to transform older properties into active retail and housing spaces by late 2027. Property owners in the Highland Park area may want to watch for potential shifts in local market valuations as these developments progress.