With hundreds of acres in development, Harrisburg sees surge of residential building
April 13, 2026
This piece is sponsored by Sioux Metro Growth Alliance.
Expect to see a lot more new rooftops rising in Harrisburg this year.
“There’s probably anywhere from 600 to 800 acres under development for residential, both single-family, multifamily, 55-plus communities, so the whole range,” said Bryce Healy, economic development and member relations specialist at Sioux Metro Growth Alliance.
“Housing has just exploded.”
The community’s population growth and projections support it. It’s already approaching 12,000 people and is expected to reach 20,000 in the next decade.
“We’re busy,” said Mark Fiechtner of Dynamic Development, which is developing a multiphase project on 120 acres in northeast Harrisburg.
“We’ve built out everything in phase two, so we have zero lots available, and we submitted phase three plans around a pond, which is our highest-dollar real estate. We’re going to start building there if the city approves soon.”
While those homes likely will sell for $1 million or more, the approximately 75 lots he already has sold are for homes starting around $400,000.
“The lots are a little smaller and less expensive,” Fiechtner said. “That’s the biggest need with higher interest rates.”
The next phase will open up another 75 lots and include the potential for condominium-style housing.
“The entry level is still pretty brisk, and at the range we build, we’ve had high demand,” Fiechtner said. “We sold 10 houses in three days last fall and put them all on the market at the same time, and they were fighting over them. People are still on a waiting list.”
The Allura development is finding similar solid traction.
The 300-acre neighborhood is being developed by Kelly Construction on the southeast corner of Louise Avenue and 271st Street, also known as County Highway 106.
Streets will start going in later this month, with the first homes expected to be under construction in June. Phase one will include 47 lots and is 25 percent pre-sold.
“There has long been a pent-up demand for south Sioux Falls and Harrisburg to grow for years,” CEO Kyle Kelly said.
“This land is positioned extremely well, bringing the two communities together along Highway 106. We expect lot sales to gain even more traction as the roads are installed this spring.”
Harrisburg also will be adding amenities for residents, including a splash pad being developed this year in addition to some major road improvements.
“Every community wants amenities for families, so the splash pad is going to be a great improvement in Central Park, along with more ball fields being developed at the Scheels Park,” Healy said.
The community also is slowly adding commercial space. Commercial permits totaled $16 million last year, “which is significant in a community that size,” Healy said. “We could use more, but commercial generally follows residential growth.”
Allura also plans an 80-acre mixed-use commercial business park on the north end of the property.
“Planning is in the works for that, and we should have a layout to share sometime in the summer,” Kelly said. “Interest in the commercial property has been very high already.”
Dynamic Development also envisions continuing to build on its commercial activity at the site. It already has served as an area for two businesses that grew out of contractor shops. Family-owned Tires and More opened in the development last year at 912 N. Cliff Ave., outgrowing a small shop.
The Boat Doctor went from 2,000 square feet to 6,000 square feet in its new location at 300 W. Caulfield St., offering diagnostics, service and repair on outboards, inboard/outboards, sterndrives and boats.
“That’s a vibrant, good-looking building, and they’re busy,” Fiechtner said. “He’s added help, and I think he’s going to have to add more because he’s swamped, so it’s been fun to help incubate businesses like these.”
A new retail center will include State Farm Insurance and will be served by a large digital billboard, with about 3,100 square feet remaining to lease.
“The insurance agency is the first in Harrisburg, so I think they’re going to do great. The owners moved from Rapid City just to start this one,” Fiechtner said.
As more commercial comes to town, “I’d love to see a parts store, and Harrisburg needs restaurants and retail,” he added. “There’s not much south of 85th Street.”
Harrisburg’s relationship with Sioux Metro Growth Alliance supports that kind of economic development. Healy is contracted through an agreement between Harrisburg and SMGA to provide economic development services to the community.
“Through our agreement, I spend the bulk of my time working with the city and the business community, and it’s a great relationship,” Healy said. “I’m involved in many conversations helping assist community growth.”
The Harrisburg Economic Development Corporation will detail what’s ahead at its annual meeting at 4:30 p.m. Thursday, April 16, at Meadow Barn at Country Orchards.
“Whether you’re a business owner, developer, leader or community advocate in Harrisburg or the surrounding communities, there is real opportunity here,” Healy said. “Opportunity to connect. Opportunity to collaborate. Opportunity to be part of something that is actively being built.”













