Building permits behind last year, with noticeable drop in housing

May 1, 2023

Sioux Falls building activity is behind last year’s record pace but ahead of the same time in 2021.

Through April, building permits in the city totaled $377.5 million, down from what chief building official Butch Warrington called a “perfect storm” of building activity in 2022, when the total through April was $542.5 million. This year is ahead of 2021, when permits totaled $318.5 million.

The biggest gaps are in new commercial and residential construction.

New commercial totaled $218.8 million, down from $366.6 million last year but more than double the $99.2 million in 2021.

Commercial additions and remodeling projects at $102.4 million are nearly double last year, when they totaled $54.6 million through April and also up from $89.5 million in 2021.

The most noticeable drop is in new housing construction, which totaled $34.6 million, or 77 single-family homes, through April. Last year, it was $98.2 million, or 281 homes, and in 2021 it was $110.8 million, or 321 homes.

Apartment construction keeps chugging along, though, with permits issued for 891 multifamily units, compared with 1,100 last year and 784 in 2021.

Residential additions and remodeling are about flat at $21.7 million, compared with $23.1 million last year and $19 million in 2021.

Large projects permitted in April include:

  • The Wondery apartments, 5604 S. Rateliff Ave., $12.7 million.
  • Maguire corporate headquarters, 2001 E. Robur Drive, $9 million.
  • Linedrive Apartments, 3520 S. Linedrive Ave., $7.5 million.
  • Aspen Heights apartments, 2304 N. Valley View Road, $6.4 million.
  • Washington Pavilion exterior improvements, 301 S. Main Ave., $5.9 million.
  • K&J Trucking addition, 1800 E. 50th St. N., $4.8 million.

For a map of noteworthy building permits issued so far in 2023, click below.

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Building permits behind last year, with noticeable drop in housing

Dragged in part by a drop in home construction, building activity is behind 2022 but ahead of 2021.

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