Construction graphic.
(SIOUX FALLS, SD) — Construction cranes are popping up all across Sioux Falls…a sign that the construction boom probably isn’t over. In 2021 about 18-hundred new apartment units opened up. Last year that number nearly doubled, with 35-hundred new units coming on the market. Bender Commercial Real Estate President Reggie Kuiper says there’s some fear the market got ahead of itself, but that isn’t the way he sees it. Kuiper says with the city adding 6,000 to 7,000 new residents every year, the real estate market is bound to remain strong.
One area that has seen significant contraction is the single family residential units. City building permits are way down from last year, especially for single family homes. Last year there were over 180 permits for single family dwellings in the first quarter. This year there were only 33 permits issued. Kuiper says the two main factors for the decline are higher interest rates and the extended winter weather that hampered construction. He believes we will see a rebound during the second quarter.
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