May 1, 2024

Home construction is fairly robust, but a steep drop in nonresidential building activity has left the city of Sioux Falls behind the past two years.

Through April, the city issued permits for $301.3 million in building activity, compared with $377.5 million last year and $542.4 million two years ago.

New commercial construction totaled $169.5 million, compared with $218.8 million last year and $366.6 million two years ago.

Commercial additions and remodeling projects showed a similar decline at $54.9 million, compared with $102.4 million a year ago but flat with $54.6 million in 2022.

Multifamily activity is partially behind the drop. Permits for the first one-third of the year in that sector totaled $41.4 million, or 388 apartment units, versus $107.2 million last year, or 891 units, and $132.7 million in 2022, or 1,100 units.

Residential activity is continuing to show a rebound, though. New residential permits totaled $53.1 million through April, up from $34.6 million last year though behind $98.2 million in 2022. That equates to permits issued for 148 new homes this year, compared with 77 last year and 281 in 2022.

Residential remodeling continues to be essentially flat with the past two years at $23.8 million.

“I believe the stats will be taking off this year at some time, and by the end of the year, things will be where they should be,” Butch Warrington, the city’s chief building official, said in releasing the data.

Major projects that were issued permits in April include the second phase of The 41six apartments near 41st Street and Six Mile Road at $8.4 million, and an expansion at ClubHouse Hotel & Suites that will add 44 guest rooms, a conference room and fitness room at $7.9 million.

Want a closer look at building activity permitted this year? Take a look at our interactive map below, and for older projects, follow this link to see previous years.