Commercial, residential construction shows steep drop from 2022, though remodeling rises

June 1, 2023

Sioux Falls building activity is down sharply compared with last year but still ahead of 2021.

Through May, the city issued building permits for $482.9 million in projects, down from $769 million for the same time last year and $396 million in 2021.

The biggest decline is in commercial activity, which totaled nearly $270.9 million in new construction through May versus $539.1 million last year. Expansion and remodeling projects for commercial users are double last year, though, at $120.6 million, compared with $65.4 million.

Large permits in May include the biggest one so far in 2023: The One2 apartments from Lloyd Cos. and Green Acre Real Estate at 205 E. 12th St. Others include:

  • FortyOne Flats at 8701 W. 41st St., $4.5 million
  • Blue Tide Car Wash at 5921 E. 18th St., $3.5 million.
  • Baseball and basketball practice facility at 500 N. Ebenezer Ave., $3.5 million.

New residential construction also continues to lag significantly behind the past two years at $53.4 million, compared with $134.1 million last year and $141.5 million in 2021.

That represents permits for 123 new single-family houses versus 412 houses through May in each of the previous two years. Permits have been issued for 1,108 multifamily units, compared with 1,830 last year and 902 in 2021.

Residential remodeling is ahead of the past two years, though, totaling $38 million, compared with $30.4 million last year and $26.1 million in 2021.

For a look at the updated building permit map, click below.

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Commercial, residential construction shows steep drop from 2022, though remodeling rises

Sioux Falls building activity is down sharply compared with last year but still ahead of 2021.

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