2023 Brings Steady Growth in Building, Population to Sioux Falls
Published on January 12, 2024
The City of Sioux Falls had a strong year of building permit valuations in 2023, exceeding $1.1 billion and marking the second-highest valuation total ever at $1,115,671,406. A total of 7,324 building permits were issued last year, and a record 68,810 inspections were performed, which is an increase of more than 2,000 carried out in 2022.
The community of Sioux Falls grew by an estimated 5,007 people in 2023. This marks a 2.4 percent increase in the population, now at an estimated total of 213,891 people. Population growth was slightly higher in the record-setting years of 2021 and 2022, at 6,750 people or 3.5 percent and 6,284 people or 3.1 percent, respectively.
“2023 proved to be more of an average year of population growth in our community, which was to be expected after a couple of historic years of growth,” said Mayor Paul TenHaken. “Our strong 2023 numbers are evidence of how great Sioux Falls is to live, work, play, start a business, and raise a family.”
Building permits are administered by the City’s Planning and Development Services department and are required for new construction, additions, and remodeling of commercial and residential properties. Last year had a mix of commercial and residential permits. Commercial building permits showed a variety of investments in manufacturing, apartments, offices, strip malls, hotels, and restaurants.
Key building insights from 2023 include:
- Total construction valuation decreased by 42.2 percent from 2022, when permits totaled an all-time record of $1,930,003,807, up 75 percent from 2021 and 110 percent from 2020.
- Nearly 20 projects exceeded $10 million. Examples include a large apartment complex downtown, healthcare facilities, industrial buildings, and a new elementary school for the Sioux Falls School District.
- New single-family housing units saw the biggest decline from the past few years. Sioux Falls added 421 new single-family units, down 33.8 percent from 2022 and 50.5 percent% from 2021.
- New townhouses maintained the average, adding 331 units for a total value of $69 million.
- Multi-family housing, which includes non-transient housing such as apartments, independent living centers, congregate living facilities, and condominiums, added 1,930 units, a 42.3 percent decrease from 2022 but a 6 percent increase from 2021.
- Out of $1.1 billion, all categories of housing permits were valued at $282 million, which is lower compared to previous years.
“Despite the many headwinds affecting the residential side of building, we are pleased to see Sioux Falls maintain a steady, healthy growth in 2023,” said Jeff Eckhoff, Director of Planning and Development Services. “We have great partnerships with our development and housing community, and we will continue to work together to keep Sioux Falls investible and help maintain safe, accessible housing for our residents.”
A full permit report can be found at www.siouxfalls.gov/permitstats.