Sioux Falls Hits $1.3 Billion in Construction as Growth Holds Steady
Published on January 14, 2026
With a total construction valuation of $1,327,437,573 in 2025, Sioux Falls surpassed the $1 billion mark for the fifth consecutive year, making last year the second-best year on record. A total of 5,615 building permits were issued in 2025 across residential and commercial building projects that include new construction, additions, repairs, remodels and renovations within Sioux Falls.
Sioux Falls also welcomed 5,088 new residents in 2025, bringing the estimated total population to 224,676. The population increase of 2.3% aligns with the city’s long-term growth rate.
2025 also marks the last full year of Mayor Paul TenHaken’s administration, which started in 2018. During Mayor TenHaken’s 8-year tenure, Sioux Falls has grown by 42,176 new residents and added $9 billion in residential and commercial construction.
“Managing Sioux Falls’ growth while keeping our community investable has been a top priority during my tenure,” Mayor Paul TenHaken said. “We balanced providing core city services to more residents every year while investing in long-term infrastructure, public safety and quality of life projects that will benefit generations to come. Maintaining the growth and strength of our community would not have been possible without collaboration across city departments, with our neighboring communities and with the private sector.”
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.
Key building insights from 2025 include:
- Commercial construction drove permits and valuation as residential construction remained steady for multi-family housing and town houses and slowed for single-family houses.
- Commercial valuation was $711.6 million for new construction and $314.2 million for additions, renovations and remodels. Key projects included manufacturing facilities, healthcare expansions and multi-family developments.
- In 2025, 17 projects exceeded $10 million. The top three highest-value projects were all greater than $100 million, including CJ Foods at $170 million, Avera’s women’s and children’s expansion at $131 million and Good Samaritan’s Founder’s Crossing at $109 million. Other projects included the Sioux Falls Regional Airport terminal expansion, apartment complexes and the City of Sioux Falls’ new light, power, and traffic facility.
- New single-family houses totaled 357, the lowest total in the past 10 years.
- Multi-family housing, which includes non-transient housing such as apartments, independent living centers, congregate living facilities and condominiums, added 1,168 units in 2025, a slight decrease from 2024. Industry trends suggest multi-family housing is going through an “absorption” period where the new unit growth slows to allow for tenants to move in to recently built units.
- Town house units totaled 403, an increase over the past two years of 344 in 2024 and 331 in 2023.
“Even with fewer residential permits, overall valuation increased thanks to large commercial and apartment projects,” said Jeff Eckhoff, the city’s director of planning and development services. “The slowdown in single-family construction is not unique to Sioux Falls. Across the housing market, interest rates remain high and there is a general hesitation around buying and selling homes. Despite softness in that area, Sioux Falls remains a strong and competitive market for commercial and residential development.”