Sept. 1, 2023

Through two-thirds of the year, Sioux Falls building activity is essentially exactly where it was two years ago.

The value of building permits through August is nearly $725.8 million, less than half of the $1.5 billion in permits that were issued at this time last year. In 2021, it was nearly $725 million.

“We don’t have the big projects this year,” said the city’s chief building official, Butch Warrington.

That’s what dominated 2022, leading to a record year that might take awhile to replicate, he said.

“It might be a couple, three years before we get to that point again.”

The story of 2023 so far, though, is a little more complex. New commercial activity has totaled $373.3 million, compared with nearly $962 million last year and $300.5 million in 2021.

Commercial additions and remodeling projects totaled $165.6 million through August, down from $299.5 million last year and on par with $160.1 million in 2021.

Permits have been issued for nine projects for more than $10 million, which account for $170 million.

Major projects permitted in August include:

• The Rowe at 57th mixed-use building, 3501 E. 57th St., $7.9 million.
• Apartment building at 5500 E. Active Gen Place, $4.9 million.
• Les Schwab Tire Centers at 5800 E. Arrowhead Place, $4.2 million.
• Presidio Components office and storage building at 4209 E. Producer Lane, $2.4 million

New residential construction is another storyline. It totaled $115.9 million through August, compared with $201 million last year and $217.1 million in 2021. That represents 286 new single-family homes, down from 546 this time last year and 638 two years ago.

Housing permits are picking up, Warrington said.

Earlier in the year, new residential permits were tracking at 30 percent to 35 percent of the prior year, he said.

“And we’re up to almost 50 percent now, so we’ve issued a few more, so that’s picking up a little bit,” Warrington said.

However, town homes, which total 196 units, account for about 60 percent of the new residential activity, compared with about 40 percent for single-family homes.

There could be more behind it, though.

“What surprised me — under 50 percent of the single-family homes that were issued last year have been final, so they’re still on working on a lot of those permits.”

The focus on home remodeling is continuing. Residential additions and remodeling permits totaled $71 million, down from $83.7 million last year but up considerably from $47.1 million two years ago.

Multifamily permits totaled 1,255 units through August, down from 2,873 last year and 1,479 in 2021.

“Right now, still very good, very sharp,” Warrington said of the multifamily market. “I would think as long as they can keep renting them out and keep showing we need them they would continue to build.”

Looking ahead 

Expect to see permits for some large projects still this year, Warrington said.

“I look at what we’ve got coming up, and we’ve got some good projects coming up — there’s no doubt,” he said.

Those include a new northwest Sioux Falls elementary school and Jacobson Plaza, which includes an ice ribbon, dog park and playground at Falls Park West. There also are still tenant build-out permits coming in for downtown office projects at Cherapa Place and The Steel District.

There are more apartment projects coming too, Warrington said. Spring Creek, a five-story apartment complex in the area of 77th Street and Cliff Avenue is under review, as is the next phase of The Boundary in northwest Sioux Falls.

More single-family residential activity could be ahead too, Warrington said. He expects a proposed development across from George McGovern Middle School in northwest Sioux Falls to begin activity soon. Its plan calls for 800 new single-family homes – with a manufacturing facility for the houses on the property.

As far as health care building activity, “I haven’t heard anything,” he said. “That’s something we’re missing this year. We did issue the Sanford Virtual Care Center earlier this year, but other than that, I haven’t heard anything.”

The coming months will show a lot about the direction of the city’s building activity, he added.

“In the next month to two months, that’s when everything gets dropped off if they want to start building then and getting footing and foundations,” Warrington said. “We don’t have a lot in there right now. I would hope they should start showing up. Of course, we haven’t had our first snow yet. That’s when everybody gets nervous.”

For an interactive map of new projects in 2023, click below. If you don’t see a project you’re searching for, look in the 2022 map.