Multifamily construction in Waukee and Ankeny is moving faster than almost anywhere else in Iowa right now — and if you’re a developer looking to build apartments or townhomes in either market, the opportunity is real. But so are the risks if you walk into a project without understanding what these two communities actually require before a shovel hits the ground.
I’ve seen developers come into the Des Moines metro with solid financing and good intentions, only to lose months — and significant money — because they didn’t account for local permitting timelines, utility capacity issues, or site-specific challenges that never show up in a national market report. This guide is meant to give you the practical picture.
If you’re planning a multifamily project in Central Iowa, the team at Happe Commercial works specifically in this market and can help you avoid the problems that slow projects down before they even start.
Why Waukee and Ankeny Are Attracting Multifamily Developers Right Now
Both cities have been among the fastest-growing communities in Iowa for years. Ankeny’s population has more than doubled in the past two decades. Waukee has seen similar growth on the west side of the metro. What’s driving multifamily demand in both markets comes down to a few consistent factors:
- A younger workforce demographic that prefers renting over buying, at least initially
- Strong employment growth tied to healthcare, manufacturing, logistics, and professional services
- Limited existing rental inventory relative to population growth
- Relatively business-friendly development environments compared to some larger metros
That said, both cities are also dealing with the infrastructure pressures that come with rapid growth. Roads, utilities, schools, and municipal services are all being stretched — and that reality shows up directly in how development projects get reviewed and approved.
Understanding the Permitting Environment in Waukee vs. Ankeny
This is the first thing developers need to get right, and it’s where I see the most variation between the two markets.
Ankeny’s Development Review Process
Ankeny has a well-established development review process with a dedicated planning and zoning department. For multifamily projects, you’re typically looking at:
→ Pre-application meeting with city staff (strongly recommended, sometimes required) → Preliminary plat or site plan submission → Planning and zoning commission review → City council approval for rezoning or conditional use permits → Building permit submission after approvals are secured
The timeline from initial submission to permit issuance for a mid-size apartment project in Ankeny typically runs four to seven months. That’s assuming your application is complete and you’re not requesting a rezoning, which adds review cycles.
Waukee’s Development Review Process
Waukee has grown quickly enough that its planning department is still scaling to match demand. The city has made improvements in recent years, but review timelines can be less predictable than Ankeny’s — especially for larger or more complex projects.
→ Pre-application conference is standard and worth the time → Site plan review goes through the development review committee → Projects requiring rezoning go to planning and zoning commission, then city council → Infrastructure agreements may be required for projects that impact roads or utilities
Waukee has also become more active about requiring developers to contribute to infrastructure improvements near their projects. Traffic impact studies, utility extension agreements, and sometimes road improvements can add both cost and time to the approval process.
The practical takeaway: Budget more time and more contingency for Waukee approvals than you might expect. Ankeny tends to move a bit more predictably, but neither city is a fast-track environment for large multifamily projects.
Site Selection: What Makes or Breaks a Multifamily Project in These Markets
Choosing the right site is more than finding available land at the right price. In Waukee and Ankeny, a few specific factors can dramatically change your project cost and timeline.
Utility Capacity and Extension Costs
Both cities are managing rapid growth, and utility capacity — particularly water and sewer — varies significantly by location. Sites on the fringe of either city’s development boundary may require you to extend utilities at your own cost. That can run anywhere from $50,000 to several hundred thousand dollars depending on distance and existing infrastructure.
Before you commit to a site, get written confirmation from the city on available utility capacity and what, if anything, will be required to serve your project. I’ve seen developers close on land only to discover that sewer capacity wasn’t available for their planned unit count — and the city had no near-term plans to address it.
Soil Conditions in Central Iowa
Iowa’s geology is generally favorable for construction, but that doesn’t mean every site is straightforward. Flood plain designations, poorly draining soils, and areas with fill history can all add to your foundation and site development costs. A geotechnical investigation before you buy — not after — is money well spent.
Proximity to Schools and Traffic Patterns
Ankeny and Waukee both have strong school systems, which is a selling point for family-oriented rental communities. But it also means that sites near schools may face additional traffic study requirements and that road improvements may be triggered by your development.
Multifamily Construction Costs in Waukee and Ankeny: What to Budget
I covered the broader Des Moines metro cost picture in detail in our post on commercial construction costs in Des Moines for 2025, but here’s a more specific breakdown for multifamily in these two markets.
Hard Construction Costs
For wood-frame garden-style apartments — the most common product type in suburban Iowa — current hard construction costs in the Waukee and Ankeny market run approximately:
| Product Type | Cost Per Sq Ft | Notes |
|---|---|---|
| Garden-style wood frame | $175 – $240/sq ft | 2–4 story, surface parking |
| Townhome-style rental | $195 – $260/sq ft | Attached, individual entries |
| Podium-style mixed use | $280 – $380/sq ft | First-floor commercial below residential |
| Structured parking garage | $45 – $65/sq ft | Stand-alone structure |
These are hard construction costs only. They do not include land, soft costs, or financing.
Soft Costs and What They Actually Add Up To
Soft costs are where first-time multifamily developers often get surprised. A realistic soft cost budget for a mid-size project in Central Iowa typically includes:
- Architectural and engineering fees — 8 to 12% of hard construction cost
- Geotechnical and environmental studies — $15,000 to $50,000+
- Civil engineering and surveying — $30,000 to $100,000+ depending on site complexity
- Permit and impact fees — varies significantly by city and unit count
- Construction loan interest during the build period
- Lender fees, title, and closing costs
- Marketing and lease-up costs before stabilization
A realistic total development cost for a 50-unit garden apartment project in Waukee or Ankeny — including land, hard costs, and soft costs — currently runs $8 million to $14 million depending on land cost and finish level.
Impact Fees: A Significant Variable in Both Markets
Both Ankeny and Waukee charge development impact fees, which are one-time charges assessed per unit to fund infrastructure capacity. These fees cover roads, water, sewer, parks, and in some cases schools.
Impact fees in the Des Moines metro can run $5,000 to $15,000+ per unit depending on the city and unit type. For a 50-unit project, that’s a $250,000 to $750,000+ line item that developers sometimes underestimate in early proformas.
Get the current fee schedule from each city’s planning department before you finalize your proforma.
Design Considerations for Suburban Iowa Multifamily
The product that leases well in downtown Des Moines is not always the same product that performs in Ankeny or Waukee. Suburban renters in these markets tend to prioritize different things than urban renters.
What Suburban Iowa Renters Actually Want
- Attached or detached garages, or at minimum covered parking
- In-unit washer and dryer (not just hookups — actual units)
- Outdoor space — patios, balconies, or yards for ground-floor units
- Storage beyond what fits in a standard closet
- Pet-friendly policies with outdoor relief areas
- Reliable, fast internet infrastructure built into the building
Amenity packages that work in urban markets — rooftop decks, bike storage, co-working lounges — tend to be less important to suburban Iowa renters than basic functional features done well.
Unit Mix Strategy
One of the more common mistakes I see on suburban Iowa multifamily projects is over-indexing on studio and one-bedroom units because they’re cheaper to build per unit. The demand in Waukee and Ankeny skews toward two-bedroom and three-bedroom units — families, young couples, and relocating workers who need more space.
A typical unit mix that performs well in these markets runs roughly:
- 15 to 20% one-bedroom units
- 50 to 60% two-bedroom units
- 20 to 30% three-bedroom units
Getting this wrong at the design stage is costly to fix after construction.
Common Mistakes Developers Make on Iowa Multifamily Projects
These come up regularly enough that they’re worth listing directly.
a) Underestimating the full permitting timeline. Developers from larger metros sometimes assume Iowa cities move faster than they do. Four to eight months from first submission to permit is realistic for a mid-size project in either city.
b) Not engaging a contractor during design. Getting a commercial general contractor in Des Moines involved during the design phase — not after drawings are complete — allows for real-time constructability and cost feedback. Projects that skip this step routinely come in over budget at bid time.
c) Using a national proforma template without local cost inputs. National averages for construction costs, impact fees, and operating expenses don’t apply directly to Waukee or Ankeny. Your proforma needs to be built with local numbers.
d) Skipping the geotechnical investigation. Soil testing isn’t optional — it’s how you size your foundations correctly. Discovering poor soil conditions after construction starts is one of the most expensive surprises in the business.
e) Underestimating lease-up time. Even in strong markets, new multifamily projects take time to stabilize. Budget for 12 to 18 months of lease-up in your financing model, not 6.
Pros and Cons of Developing Multifamily in Waukee and Ankeny
Advantages
✔ Strong and consistent population growth driving real rental demand ✔ Business-friendly local governments that want quality development ✔ Lower land costs compared to infill Des Moines locations ✔ Good school systems that attract family renters and reduce turnover ✔ Less competitive development environment than coastal markets
Disadvantages
✔ Impact fees and infrastructure requirements add meaningful upfront cost ✔ Permitting timelines are longer than developers from faster markets expect ✔ Utility capacity can be a constraint on fringe sites ✔ Suburban product type requires garages and larger units, which increases cost per unit ✔ Lease-up in suburban markets can take longer than urban infill projects
How to Structure Your Project Team for Success
The difference between a smooth multifamily project and a painful one often comes down to who you have on your team and when they get involved.
Start with a civil engineer who knows Waukee and Ankeny specifically. Local knowledge of each city’s utility systems, drainage requirements, and review process is worth more than a slightly lower fee from an out-of-market firm.
Get your general contractor involved during schematic design, not after construction documents are complete. This is where value engineering opportunities exist — once you’re at 90% construction documents, the cost to change things goes up significantly.
Work with an architect who has built multifamily in suburban Iowa markets. The product type, local code requirements, and what renters actually want in these markets should already be in their head before they start drawing.
💬 From the Field
“One of the most consistent patterns I see on multifamily projects in the Des Moines suburbs is developers who treat the permitting process as an afterthought. The cities want good projects — but they have processes, and those processes take time. The developers who start their city conversations early, bring complete applications, and show up prepared for the pre-application meeting move faster than everyone else. It’s not complicated — it’s just preparation.”
Ready to Move Forward on Your Waukee or Ankeny Project?
If you’re at the stage where you have a site under consideration or a concept you’re trying to price out, early conversations with the right contractor make a significant difference. Happe Commercial works with multifamily developers across Central Iowa — from initial preconstruction budgeting through project completion.
The earlier you bring a contractor into the conversation, the more options you have on cost, schedule, and design. Reach out through Happe Commercial to talk through your project.
Frequently Asked Questions
How long does multifamily permitting take in Ankeny or Waukee? A mid-size apartment project typically takes four to eight months from initial submission to permit issuance, depending on whether rezoning is required and how complete your application is at submission.
What are typical impact fees for multifamily development in the Des Moines metro? Impact fees in Ankeny and Waukee currently run approximately $5,000 to $15,000+ per unit depending on unit type and the specific fee schedule in effect at the time of permit application.
What is the average hard construction cost for apartments in Waukee or Ankeny? Wood-frame garden-style apartments in these markets currently run $175 to $240 per square foot in hard construction costs, not including land, soft costs, or financing.
Do I need a geotechnical investigation before buying land for a multifamily project? Yes — soil conditions vary across Central Iowa and a geotechnical investigation before closing protects you from discovering foundation problems after you’ve already committed to the site.
What unit types are in highest demand for rentals in Waukee and Ankeny? Two-bedroom and three-bedroom units make up the majority of demand in these suburban markets, with garages and in-unit laundry being the most consistently requested features.
When should I bring a general contractor into the project? During schematic design — not after construction documents are complete. Early contractor involvement allows for real-time cost feedback and reduces the risk of a budget-busting bid at the end of the design process.
How long does lease-up typically take for a new apartment project in suburban Des Moines? Budget 12 to 18 months for lease-up in suburban Iowa markets; projects that underestimate lease-up time often end up in financing difficulty before they reach stabilization.