Career Guide for Real Estate Agents: Des Moines, IA

If you're a real estate agent looking to move, you're probably weighing a lot of factors: earning potential, cost of living, market stability, and quality of life. Des Moines, Iowa, often flies under the radar, but for real estate professionals, it’s a market worth serious consideration. It’s a city that balances Midwestern affordability with a growing, diverse economy. As a local, I can tell you it’s not the frantic pace of Chicago or the sky-high prices of the coasts. It’s a place where you can build a solid career, own a home, and still have time for a weekend at Gray's Lake. Let’s break down what your life as a real estate agent in Des Moines would actually look like.

The Salary Picture: Where Des Moines Stands

First, let's talk numbers. The salary data tells a specific story about the Des Moines real estate market. The median salary for real estate agents here is $60,133 per year, which breaks down to an hourly rate of $28.91. It's crucial to understand that this figure is a median—it splits the market exactly in half. Your earnings will swing dramatically based on your hustle, niche, and experience. For context, the national average for real estate agents is $61,480/year. This means Des Moines is slightly below the national median, but this is misleading without considering cost of living. In a city with a cost of living index of 92.7 (US avg = 100), your dollar goes significantly further here than it does in most of the country.

The job market in the Des Moines metro area is stable, with approximately 420 jobs for real estate agents. The 10-year job growth is projected at 3%, which isn't explosive but indicates steady, sustained demand. This isn't a boom-or-bust market; it's a reliable one.

Experience-Level Breakdown

Your income potential is directly tied to your experience and production. Here’s a realistic breakdown of what you can expect to earn in the Des Moines area:

Experience Level	Estimated Annual Income	Key Factors
Entry-Level (0-2 years)	$40,000 - $55,000	Building a client base, relying on referrals and team leads, lower volume.
Mid-Career (3-7 years)	$60,000 - $85,000	Established reputation, repeat clients, consistent transaction volume.
Senior Agent (8-15 years)	$85,000 - $120,000+	Strong referral network, specialty niches (e.g., luxury, relocation), potential for team leadership.
Expert/Team Lead (15+ years)	$120,000 - $200,000+	Top producer status, manages a team, diversified income streams (mentoring, investments).

Comparison to Other Iowa Cities

How does Des Moines stack up against other major Iowa markets? While Des Moines is the largest metro, other cities have different dynamics.

City	Median Salary	Cost of Living Index	Market Vibe
Des Moines	$60,133	92.7	Diverse, stable, government & finance hub.
Cedar Rapids	~$58,500	~89.0	Strong manufacturing & industrial base, smaller.
Iowa City	~$55,000	~95.0	University-driven, seasonal market, younger demographic.
Davenport (Quad Cities)	~$57,000	~86.5	Riverfront economy, cross-state dynamics.

Insider Tip: While salaries in smaller markets like Iowa City might seem lower, the client base is often more transient (university faculty/staff, medical professionals). Des Moines offers more stability for long-term client relationships.

The Real Take-Home: After Taxes and Rent

A $60,133 salary in Des Moines provides a comfortable, but not extravagant, lifestyle, especially for a single person or a couple without children. Let's break down the monthly budget for a real estate agent earning the median salary.

Assumptions:

• Gross Monthly Income: $5,011 ($60,133 / 12)
• Estimated Taxes (Federal + State + FICA): 22% | **$1,102**
• Take-Home Pay: ~$3,909/month
• Average 1BR Rent: $899/month

Expense Category	Monthly Cost (Est.)	Notes
Housing (1BR Rent)	$899	This is the metro average. Downtown or trendy neighborhoods will be higher.
Utilities (Electric, Gas, Internet)	$180	Winter heating costs can spike in Iowa.
Groceries	$400	Based on USDA moderate-cost plan for one adult.
Transportation	$350	Car payment, insurance, gas. Public transit exists but a car is essential for showings.
Health Insurance	$450	Varies widely; many agents are on spouse's plan or ACA marketplace.
Debt/Student Loans	$300	Highly variable; national average for recent grads.
Miscellaneous (Dining, Entertainment, Personal)	$400	A reasonable budget for a modest social life.
Total Expenses	$2,979
Monthly Savings/Investments	~$930

Can they afford to buy a home? Absolutely. Let's look at the math. The median home price in the Des Moines metro is around $275,000. With a $930/month surplus, a 10% down payment ($27,500) would take about 2.5 years of diligent saving. A 20% down payment ($55,000) would take closer to 5 years. With current mortgage rates, a monthly payment (including taxes and insurance) on a $275,000 home with 10% down would be roughly $1,800-$1,900, which is manageable on a $3,909 take-home pay, especially when you consider that real estate agents often have tax deductions for home office expenses. Many agents in Des Moines do own their homes.

Where the Jobs Are: Des Moines's Major Employers

As a real estate agent, your clients come from everywhere, but knowing the major employment centers helps you target marketing and understand relocation needs. Des Moines's economy is a mix of government, finance, insurance, and healthcare.

1. Principal Financial Group: A global financial services leader headquartered downtown. They employ over 6,000 people locally. Hiring is steady, and their employees are often first-time homebuyers or looking for upscale rentals in neighborhoods like the East Village or Sherman Hill.
2. Hy-Vee: The employee-owned supermarket chain is based in West Des Moines and is one of the region's largest private employers. They have a massive, diverse workforce needing housing across all price points.
3. UnityPoint Health & MercyOne: Two major healthcare systems with sprawling campuses. UnityPoint's Iowa Methodist Medical Center and MercyOne's Des Moines Medical Center are both downtown and major employment hubs. Doctors, nurses, and administrators are a consistent source of clients.
4. State of Iowa Government: As the state capital, Des Moines is the center of government employment. Thousands of civil servants work in the Capitol Complex and surrounding buildings. These jobs offer stability, which translates to reliable home-buying power.
5. Nationwide Insurance: While their headquarters is in Columbus, OH, their Des Moines campus is a major regional hub for claims, IT, and corporate services, employing over 3,000 people.
6. Wells Fargo: Their Des Moines home mortgage division is a significant employer, directly tied to the real estate industry. They have a large campus in West Des Moines.
7. Drake University & Des Moines University (DMU): The presence of two universities brings a steady stream of faculty, staff, and students. DMU, in particular, attracts medical professionals who need housing close to the campus and downtown hospitals.

Hiring Trends: The metro is experiencing steady growth in the tech and financial services sectors. Companies like John Deere Financial and EMC Insurance are also key players. The job market is stable, not hyper-competitive, which supports a healthy real estate market.

Getting Licensed in IA

The process in Iowa is straightforward and cost-effective. You must go through the Iowa Real Estate Commission (IREC), which is part of the Iowa Department of Commerce.

Requirements:

1. Pre-Licensing Education: You must complete 60 hours of approved real estate courses (principles, law, and practice). This can be done online or in-person through schools like the Iowa Association of Realtors (IAR) or Real Estate University.
2. Background Check: Submit fingerprints for a state and national criminal background check.
3. Exam: Pass the Iowa Real Estate Salesperson exam, administered by Pearson VUE. The exam has a national and state-specific portion.
4. Sponsorship: You must be sponsored by a licensed Iowa broker. This is a critical step—your broker will provide guidance, access to the MLS, and errors & omissions insurance.

Costs (Approximate):

• Pre-Licensing Course: $300 - $500
• Exam Fee: $95
• Background Check: ~$85
• License Application Fee: $125
• Total: ~$605 - $705

Timeline: From starting your course to receiving your license, expect 3-4 months. This includes study time (allow 2-3 months for the 60-hour course), scheduling the exam, and processing your application.

Best Neighborhoods for Real Estate Agents

Living in the right neighborhood can impact your commute, your client base, and your lifestyle. Here are four areas to consider:

1. Downtown / East Village:

   • Commute: Walkable or a short bike ride to major offices (Principal, State Capitol). The ultimate "live where you work" vibe.
   • Lifestyle: Urban, vibrant, walkable to restaurants, breweries, and the Des Moines Art Center. Young professional demographic.
   • 1BR Rent: $1,100 - $1,400/month. More expensive, but you save on transportation.
   • Best For: Agents who want to be in the heart of the action and network with downtown professionals.

2. Sherman Hill / Historic East Village:

   • Commute: Literally minutes from downtown offices. Easy access to I-235.
   • Lifestyle: Historic, tree-lined streets with stunning Victorian homes. Quieter than downtown but still central. Great for a professional who appreciates character.
   • 1BR Rent (in a historic duplex/apartment): $900 - $1,200/month.
   • Best For: Agents who want a professional image and easy access to downtown clients.

3. Beaverdale:

   • Commute: 10-15 minute drive to downtown. Good access to I-235 and I-80/35.
   • Lifestyle: A classic, established suburb with beautiful homes, mature trees, and a strong sense of community. Great schools, family-friendly.
   • 1BR Rent: $750 - $950/month. More affordable for the space you get.
   • Best For: Agents with families or who want to work with families in a stable, desirable neighborhood.

4. Windsor Heights / Clive:

   • Commute: 15-20 minute drive to downtown. Easy access to the interstate ring.
   • Lifestyle: Upscale, quiet, and very safe. Considered some of the best school districts in the metro. More car-dependent.
   • 1BR Rent: $850 - $1,100/month.
   • Best For: Agents who prioritize schools and safety, and who want to work with established homeowners.

The Long Game: Career Growth

In Des Moines, career growth isn't about explosive leaps; it's about building a sustainable, referral-based business.

• Specialty Premiums: Agents who specialize can command higher fees or work more efficiently.
  • Relocation: Working with corporate transferees from Principal, Wells Fargo, and John Deere. Steady, high-volume work.
  • Luxury Market: The $500,000+ market is active in areas like Valley Junction, Clive, and Johnston. It requires a higher marketing budget and a polished network.
  • First-Time Homebuyer Specialists: With affordable prices, there's a huge market for this. Partnering with local lenders and inspectors is key.
• Advancement Paths: The traditional path is to become a broker-owner, opening your own firm after 2-3 years of experience. Another common path is to build a team, bringing on junior agents and transaction coordinators to scale your production. Many senior agents also transition into property management or real estate investing.
• 10-Year Outlook: The 3% job growth indicates a stable market, not a volatile one. The key driver will be the continued strength of the Des Moines economy, particularly in finance and insurance. As the metro slowly expands into suburbs like Ankeny and Urbandale, agents who master those suburban markets will thrive. Remote work trends may also increase demand for larger homes with home offices in quieter, family-oriented neighborhoods.

The Verdict: Is Des Moines Right for You?

Pros	Cons
Low Cost of Living: Your income stretches further, allowing for home ownership and savings.	Slower Market Pace: Not as fast-paced or high-volume as major coastal cities.
Stable, Diverse Economy: Strong employers in finance, insurance, and government provide a steady client base.	Seasonal Market: Winter months can be slow, requiring financial planning.
Manageable City Size: Easy to navigate, build a network, and become a known expert in specific neighborhoods.	Limited Luxury Market: The ultra-high-end market is smaller than in larger metros.
High Quality of Life: Clean, safe, with great parks, a vibrant downtown, and strong communities.	Less Transient Population: Building a client base from scratch can take time, as many people are lifers.

Final Recommendation: Des Moines is an excellent choice for real estate agents who value stability, work-life balance, and affordability over chasing the highest possible commission in a cutthroat market. It's ideal for a mid-career agent looking to plant roots, raise a family, and build a lasting referral business. For a brand-new agent, it's a supportive market to learn in, but you'll need patience to build your career. For an expert agent from a high-cost city, Des Moines offers the chance to own property, increase your net worth, and enjoy a less stressful lifestyle.

FAQs

1. Do I need a car to be a real estate agent in Des Moines?
Yes, absolutely. While downtown is walkable, showings, inspections, and client meetings are spread across the metro. Public transit isn't practical for the demands of the job. A reliable car is non-negotiable.

2. How competitive is the Des Moines market for new agents?
It's moderately competitive. With roughly 420 jobs and 3% growth, there's room for new agents, but you must differentiate yourself. The key is to find a niche (e.g., a specific suburb) or a strong mentor (broker). The "good ol' boy" network is real, but it's being disrupted by younger, tech-savvy agents.

3. What's the biggest misconception about being an agent in Iowa?
That it's all farmland and small towns. The Des Moines metro has a surprisingly sophisticated urban core, a growing food scene, and a diverse population of professionals. You're not just selling farmhouses; you're helping doctors, engineers, and executives find homes.

4. Are there good opportunities for commercial real estate?
Yes, but it's a different world. The commercial market is dominated by a few large firms (e.g., CBRE, JLL, Colliers). The barrier to entry is higher, and it often requires more specialized education. The residential market is far more accessible for most agents.

5. How important is having a real estate designation (like CRS, ABR)?
In a market like Des Moines, it can help you stand out, especially when competing for relocation clients from corporations like Principal. It signals a higher level of expertise. However, your local reputation and ability to close deals are ultimately more important than the letters after your name. Start with the basics (e.g., GRI from the Iowa Association of Realtors) and build from there.