In 2023, Sioux Falls sees 2nd-highest building permit valuation
Building permit valuation in Sioux Falls had its second-highest year on record in 2023, with more than $1.1 billion in a year at a time when the city is also estimated to have added 5,000 residents to its population.
While valuations were down significantly from 2022’s total of $1.9 billion, that’s more about how much happened in 2022, a year in which commercial building permits alone were valued at $1.21 billion.
Mayor Paul TenHaken said at a Friday morning news conference that 2023’s numbers showed a “very diverse mix of building permits.” He added this illustrated a healthy, ongoing building economy.
The city also permitted 2,682 new residential units in 2023, including 1,930 multi-family, 421 single-family homes and 331 townhomes.
That was a step down from the last two years, with 3,132 new units permitted in 2021 and 4,384 permitted in 2022. But Planning and Development Services Director Jeff Eckhoff said this, too, was the result of an “anomaly” of the last two years.
Eckhoff did say single-family housing totals, which were at their lowest since at least 2014, were maybe the most significant change, pointing to rising interest rates and inflation as something that had held back demand in single-family housing.
The estimated population increase of 5,007 people puts the city’s estimated total of 213,891 for 2023, which Eckhoff again said was more of a “more normalized year” where the city saw 2.4% population growth after two years oft growth eclipsing 3%.
TenHaken said he “wanted to be realistic from the outset” that ongoing economic headwinds could lead to a “softer” 2024, adding he’d be happy to see valuations cross $1 billion again a year from now.