May 20, 2021

Of the seven houses Vince McCormick is building this year, more than half are from out-of-state buyers.

“That’s a tremendously different dynamic,” said McCormick, owner of Smart Homes.

“It’s funny to hear people saying, ‘I think I’m OK with a two-stall garage. I’ve had to walk six blocks to my car for the last 10 years of my life and pay for that parking spot.’”

Instead, they’re paying for houses in Sioux Falls, in a market that has seen pricing trend upward.

For houses such as those McCormick builds, which start in the $400,000s, the average price per square foot has gone from about $255 to $280 this year.

“Some people are trending way over $300,” he said.

“It’s your materials. Nobody is taking more money home.”

McCormick, who has a house displayed on this weekend’s Parade of Homes event, also has seen a trend toward building slab-on-grade homes, which have no basements.

The home in northeast Sioux Falls that he built has more than 3,000 square feet all on one level.

It inspired him to show a layout “where people still feel they’re not on top of each other or the space is one where everything is joined together,” he said.

“People aren’t carrying everything with them.”

It’s a minimalist mindset, he said, especially for out-of-state buyers who are moving from considerably smaller living spaces on the coasts.

In the house he has on the tour, which is in northeast Sioux Falls off Six Mile Road, there are separate zones for sleeping, working and entertaining.

Two styles of office are built into the home.

One takes on a 1920s speakeasy inspiration in the design.

The other is incorporated into the laundry room.

He also has integrated a movie room and fitness room into the floor plan.

“You can still have the kids go and have their space,” he said.

Another challenge facing builders this season: The supply chain is out of whack.

“Definitely,” said Jarrod Smart, owner of Jarrod Smart Construction and chair of the Parade of Homes event.

“We’re waiting on doors on houses we built six months ago. It’s nuts.”

McCormick has an upcoming closing and knows he will “have to bring the closet doors once they’re in,” he said. “I would have never thought that would be the situation.”

The Parade of Homes event, which is organized by the Home Builders Association of the Sioux Empire, offers the chance to view more than 40 new houses in a variety of price ranges. It runs from 1 to 5 p.m. Saturday and Sunday. Click here to learn more. 

It’s worth taking the time to consider options, McCormick said.

“It feels like people are getting in a rush to do it,” he said. “What I suggest to people is there’s land out there. The developers are working very, very hard to get additional properties secured for people. I don’t think we have any issues with being in a situation where there’s going to be no land.”