Sioux Falls saw 'unprecedented' growth year with $1.93B in building permits

The City of Sioux Falls had a record year of building permit valuations in 2022 totaling $1.93 billion, marking a 75% increase from 2021.

"We saw a historic growth year for us here in Sioux Falls in residence, new residence, new residents and building permits. And it was an exciting year, and I often talk about the excitement of growth, but it's usually followed up with the challenges of growth right after that," Mayor Paul TenHaken said.

Jeff Eckhoff, the city's director of planning and development, called the growth "unprecedented" when it comes to the need for housing.

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According to city data, an estimated 6,284 people moved to Sioux Falls in 2022, which is only slightly lower than the record set in 2021 of 6,750 people.

This past year set a new record of 3,300 apartment units being approved, which nearly doubled the 2021 previous record of 1,800. With occupancy rates still around 98%, this is tracking with the demand caused by population growth.

The total valuation for new commercial buildings was about $1.21 billion, and there were 18 individual projects that exceeded a construction valuation of $20 million.

The top commercial projects included the city's water reclamation facility, the Sanford surgical tower, the airport parking ramp, the Augustana Midco Ice Arena and Cherapa Place.

TenHaken predicts the city won't see the same level of growth this year because of economic uncertainty. He said the city is already adapting a more cautious approach to taking on new projects, but the mayor expressed his excitement to see the city's continued growth.

"The theme ... is keeping Sioux Falls investable," TenHaken said.

This article originally appeared on Sioux Falls Argus Leader: Unprecedented city growth saw nearly $2B in building permits in 2022