Homebuilders: With lots in city limited, buyers look out, go custom
Sept 14, 2023
If there’s such a thing as a unicorn residential lot, Dusty Rallis might have just finished building on it.
“A lot of research,” a lifetime in Sioux Falls and a lot of networking are what he credits for helping buyers secure the rare available lots within existing city neighborhoods.
That’s the case with 2608 S. Poplar Ave., where a home from Rallis Construction is among three featured homes on this year’s Fall Parade of Homes from the Home Builders Association of the Sioux Empire.
“It was a double lot attached to another house, and they parceled it off, and we built the house,” Rallis said.
The house — a unique two-story with an open staircase — features a 1,700-bottle wine cellar and kids loft with a theater above the garage.
“It’s just a very unique style,” he said. “Once people come through, they’ll realize it’s not like anything they’ve seen in Sioux Falls,” he said. “It’s got nice outdoor living space, a screened-in fireplace, the cabinets are beautiful. A furniture maker built them, so they’re next-level cabinetry.”
For Rallis, though, this is a rarity in recent years.
“We do (work) within 20 to 30 miles of Sioux Falls, and that’s been busy. We just haven’t really done a lot in the Sioux Falls area,” he said. “We did one house in the city limits last year because there’s no availability.”
Lots that are available in the city limits largely are in the northeast. That’s where 1J Homes, which has another Parade feature home, completed a 5,300-square-foot home at 1516 S. Scarlet Oak Place., in the area of Willow Run Golf Course.
“The homeowners were looking for that wow factor,” 1J president Jamie Mutschelknaus said. “You walk in the front door or from the garage, and it just grabs you.”
There’s a feature wall over the fireplace, 10-foot windows and a lot situated picturesquely on the Big Sioux River.
And then there’s the garage.
“The homeowner was big on the garage,” Mutschelknaus said. “His Corvette is sitting on a car lift with neon signs all around and an LED light fixture that highlights the cars.”
The house “has something for everyone,” he added. “You have the man cave — the garage — and then this ‘wow’ great room to bring people and entertain. The daughter’s room is adorable, and they did a playhouse under the stairs. It’s one of those houses where there’s something that grabs everyone’s attention.”
Those custom features – things like the home’s three-sided fireplace, wraparound wet bar and custom golf simulator — are indicative of what Mutschelknaus said he’s seeing in the industry.
“The homes have definitely become more personal,” he said. “There’s a lot more time spent in design and picking finishes and even through construction making sure we’re accommodating pieces of furniture or just personal style.”
Both builders say the industry has capacity to take on more work locally and that material shortages have lessened.
“We’ve got a handful of houses that start in the spring that we’ve got drawn up and ready to go,” Rallis said. “Always plan ahead. Some people are worried about interest rates, but you’re not married to your interest rate. You’re married to your house, so get your house built because they’re going to change. There’s less labor to assemble the house, and the demand has not gone down, so it increases build times. It’s important to plan ahead.”
The first weekend of the Parade of Homes brought strong interest from buyers, Mutschelknaus added.
“It was good. We had quite a bit of traffic,” he said. “It seems like we’re starting to get people who have been a little more accepting of the interest rates, and they’re starting to fire back up with interest (in building). It’s coming. I spent a lot of time talking to different lenders, and there are still good construction rates out there.”
1J has lots available in the northeast and in Tea’s Nine Mile Lake development, he said.
“If someone is looking for something, we have the ability to help them figure out what’s available and secure land and do our best to accommodate,” Mutschelknaus said, adding that the Parade of Homes is a good chance to “go around and see what the trends are and what homes speak to you in their level of quality. There are great builders out there that do have availability.”
The Parade of Homes wraps up from 1 to 5 p.m. Saturday and Sunday. It’s a $5 donation to tour each of the three featured homes. Otherwise, the event is free and includes a look at more than four dozen homes across the Sioux Falls area representing the work of 32 builders.
For a complete look at the event and available homes to tour, click here.
Stay up to date throughout the event by downloading the Parade of Homes app:
For a look inside the third featured home, click below.
