Sioux Falls building activity shows strong start

Feb. 2, 2026

Sioux Falls didn’t set a construction record like it did last January but is off to a solid start for the year.

New building permits totaled $49.1 million in January, compared with $102.5 million last year and $36 million two years ago. Last January’s record total was bolstered by a $31.6 million permit for Avera McKennan Hospital & University Health Center to construct the shell for its women and children’s services building on the main campus.

The 2026 number is “right on track from previous years,” chief building official Neil King said.

The largest permit for the month was the build-out for an administrative building that’s part of the CJ Schwan’s Asian food production facility at $10.9 million. The new Dick’s House of Sport in the former Sears space at The Empire Mall also came in at $5.2 million.

Overall new commercial projects totaled $26.6 million, compared with $37.7 million last year and $14.3 million two years ago. Commercial additions and remodeling projects totaled $11.4 million, compared with $55.5 million last year and $14.3 million two years ago.

Residential activity showed some strength to begin the year, totaling $5.5 million in new residential permits, compared with $3.9 million last year and $4 million two years ago. That represents 11 single-family homes, though, which is one fewer than last year and three fewer than two years ago.

The city has not issued any permits for multifamily units, compared with 190 last year and 24 two years ago.

Residential additions and remodeling work totaled $5.6 million, just ahead of last year’s $5.3 million and ahead of $3.4 million two years ago.

To see an interactive map of noteworthy permits for this year, click below.

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Sioux Falls building activity shows strong start

Sioux Falls didn’t set a building record like it did last January but is off to a solid start for the year.

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