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Midwest’s Millennial Magnet and Business Boomtown

Discover Des Moines

des moines iowa skyline
By Karen E. Kennedy, President & Founder of NAS Investment Solutions

Discover Des Moines – Midwest’s Millennial Magnet and Business Boomtown

In 2023 Forbes Advisor compared the one hundred most-populous metropolitan areas in the United States and ranked the Des Moines-West Des Moines MSA as the number one place for young professionals to live. The designation is a result, in part, of investments in new locations from major tech companies in the past decade that have turned the market into a magnet for professional millennials seeking a career in the tech industry. Major name-brand companies such as Microsoft, Meta, Amazon, and Apple have expanded or are in the process of expanding their operations in the Des Moines area.1,2,3

Des Moines’ affordable cost of living, ranked #7 Lowest Cost of Living in the U.S. by Apartment List in 2023, makes it an attractive destination for those starting their careers or looking to make their mark in their chosen field.

A Critical Nerve Center for High Tech Data Center Operations

Des Moines has become a major force in the data center operations space benefiting from a combination of factors that make it an enticing place for data center development. Iowa has comparatively low costs for land and utility power, and there is lower exposure to natural disasters than many areas of the nation, with minimal risk from hurricanes and earthquakes. In recent years, the Iowa legislature has passed incentive programs, fostering new development.

Downtown Des Moines
The renaissance of Downtown Des Moines is a testament to the city’s commitment to growth and development.

Microsoft and Meta both have built massive data centers in the Des Moines area over the past decade. Both projects represent billions of dollars of capital investment. Furthermore, growth within this sector shows no signs of abating as they seek to build upon existing infrastructure to create a virtual world populated by 3D Avatars. Apple is currently constructing a new $1.3 billion data center in Waukee, while Meta is adding two new facilities to their existing $2.5 billion Altoona Campus. 8,9,10

Fastest Growing Metro Area in the Midwest

Des Moines is the capital and most populous city of Iowa. According to the latest U.S. Census data, the MSA ranks as the fastest-growing metropolitan area in the Midwest percentagewise and grew at twice the rate of the second-fastest growing metro, Indianapolis. This population growth is expected to continue, with projections showing the Des Moines metro area population nearing one million people in the coming years. 4,5

A Robust and Diverse Economy

Des Moines is a robust and growing economic engine. The city’s economy is diverse, with significant contributions from various industries including Financial Services, Insurance, Government, Healthcare, Agriculture and Technology.

Major employers in the Des Moines area are indicative of the diversity of the area’s economy. Click here to see list of major employers.6

A Global Hub of the Insurance Industry

Long-known as the “Hartford of the West,” Des Moines is a global hub of the insurance industry with a history that stretches back over one hundred years with the founding of Principal Financial Group and Employers Mutual Company. Des Moines is now home to over eighty insurance companies and ranks as one of the largest insurance markets trailing only Hartford, Connecticut, and megacities like New York. The insurance industry now accounts for approximately 16% of the region’s jobs giving Des Moines the distinction of having the second-highest concentration of insurance industry jobs among major U.S. metros. 7  The list of major insurance companies in Des Moines includes Principal Financial Group, Nationwide, Wellmark Blue Cross Blue Shield of Iowa, and EMC Insurance Companies.

Iowa Capitol Building
Des Moines is the state Capital of Iowa.

A Downtown Renaissance and a Flourishing Urban Landscape

The renaissance of Downtown Des Moines is a testament to the city’s commitment to growth and development. The downtown area has experienced tremendous growth and development over the past decade to the tune of $2.1 billion. The push to develop downtown has resulted in a bustling core with new hotels, entertainment venues, shops, and residences. Large-scale corporate investments drove this mass migration to the urban core. Krause Companies’ new $151 million downtown headquarters and Principal Financial Groups’ $240 million renovation of 750 Park building transformed the Des Moines skyline. 11,12   Among the notable cultural developments in the past decade is the installation of the John and Mary Pappajohn Sculpture Park, which features twenty-five works by international artists, valued at more than $40 million. The sculpture park was recently included in Midwest Living Magazine’s list of the top 45 “best new Midwest spots to play, eat and stay”. 13,14

Des Moines is at the Top of The List

In recent years many national publications have placed Des Moines at the top of their quality of life and economic growth lists. They include:

#1 Place for Young Professionals to Live | Forbes, 2023
#2 Safest Place to Live | U.S. News & World Report, 2021
#4 Most sustainable Metro | Site Selection, 2021
#5 Best Places to live in the U.S. for families | U.S. News & World Report, 2022
#5 Top Emerging North American Tech Market | CBRE, 2021
#7 Lowest Cost of Living in the U.S. | Apartment List, 2023
#9 Top Metro for Number of Economic Development Projects | Site Selection Magazine, 2023
Top 10 Fastest-Growing Mid-Sized Metro | Site Selection Group, 2023
Top 20 Best Pleases to Live in the U.S. | U.S. News & World Report, 2023
Top Three Breakout Cities on the Forefront of America’s Economic Recovery | The Wall Street Journal, 2021

The renaissance of Downtown Des Moines, significant investments from major tech industry companies, economic diversification and a lower cost of living put Des Moines on a solid path to more growth and development.

Des Moines


Reference Links

  1. https://www.forbes.com/advisor/mortgages/top-places-for-young-professionals/
  2. https://www.datacenterdynamics.com/en/news/apples-long-delayed-iowa-data-center-still-in-the-planning-stage/
  3. https://www.datacenterdynamics.com/en/news/microsoft-gains-site-approval-third-building-osmium-site/
  4. https://www.dsmpartnership.com/news-media/news/partnership-news/dsm-population-growth-percentage-outpaces-other-midwest-metros
  5. https://www.desmoinesregister.com/story/news/2023/05/28/des-moines-metro-growing-faster-than-midwest-peers/70257881007/
  6. https://www.dsmpartnership.com/filesimages/Growing%20Business%20Here/Major%20Employers/Major%20Employer%20List%202023.pdf
  7. https://www.iid.iowa.gov/about/innovation#:~:text=Des%20Moines%20and%20the%20state,focused%20on%20insurtech%20and%20fintech
  8. https://www.datacenterfrontier.com/cloud/article/11427725/meta-adds-more-data-centers-in-iowa-pushing-campus-to-5-million-sf
  9. https://www.kcci.com/article/waukee-iowa-apple-data-center-could-begin-construction-as-early-as-this-spring/39018461
  10. https://www.innovationia.com/2021/12/16/final-expansion-to-make-altoona-metas-largest-data-center-worldwide/
  11. https://bit.ly/DSM_Register_Principal_Renovation_Tour
  12. https://bit.ly/Bespoke_HQ_DesMoines
  13. https://dsmpublicartfoundation.org/location/general-downtown/pappajohn-sculpture-park/
  14. https://desmoinesartcenter.org/visit/pappajohn-sculpture-park/
Karen E. Kennedy

About the Author

Karen E. Kennedy's expertise spans various areas, including 1031 Exchanges, Delaware Statutory Trust (DST) structured investments, fractional interest ownership, tenancy-in-Common (TIC) owned properties, property acquisitions, portfolio management, and investor relations.

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Karen E. Kennedy

Compiled By:

President & Founder NAS Investment Solutions

Karen E. Kennedy's over-40 years experience spans various areas, including 1031 Exchanges, Delaware Statutory Trust (DST) structured investments, fractional interest ownership, Tenancy-in-Common (TIC) owned properties, property acquisitions, portfolio management, and investor relations. See Full Bio

Des Moines Iowa’s Major Employers

Wells Fargo & Company
Financial Services | 11,000 employees
Hy-Vee, Inc.
Supermarkets | 11,184 employees
Principal
Financial Services & Insurance | 6,100 employees
MercyOne
Healthcare | 5,777 employees
UnityPoint Health
Healthcare | 5,492 employees
Amazon
Tech – Ecommerce | 4,100 employees
John Deere: Des Moines Works, Financial, and Intelligent Solutions Group (ISG)
Manufacturing Agricultural Equipment | 3,328 employees
Nationwide
Financial Services | 3,300 employees
Vermeer Corporation
Manufacturing Agricultural Equipment | 3,200 employees
JBS USA
Meat Processing: 2,300 employees
Corteva Agriscience
Agricultural Research & Science | 2,255 employees
Pella Corporation
Manufacturing | 2,224 employees
Kum & Go:
Retail Convenience Stores | 2,000 employees
Mercer Health & Benefits, LLC:
Health Insurance | 1,800 employees
UPS
Logistics | 1,721 employees
Wellmark Blue Cross Blue Shield of Iowa
Healthcare Insurance | 1,600 employees
Bridgestone Americas Tire Operations
Manufacturing | 1,600 employees
Lumen
Communications Technology | 1,500 employees
Athene
Financial Services | 1,450 employees
Casey’s General Stores, Inc.
Convenience Stores | 1,200 employees

*Des Moines Area Apple and Meta Employee Numbers Are Not Yet Publicly Available

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Disclaimer

The information provided here is for your general informational purposes only. It should not be considered a recommendation or personalized advisory advice. NAS Investment Solutions, LLC has made this third-party information available from authors it believes are knowledgeable and reliable resources. However, its accuracy or completeness cannot be guaranteed and opinion may change due to legal or economic conditions.

All investments involve risk including the possible loss of principal. You should familiarize yourself with all risks associated with any investment product before investing. If you have specific questions, do not hesitate to reach out to Karen E. Kennedy, President of NAS Investment Solutions.


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