Another record year in 2022, so what’s ahead?

Historic. Unprecedented. Challenging. These buzzwords are often slung around when talking about the growth in Sioux Falls, but they’re not just buzzwords. They are facts in helping tell the City’s story the past several years. The numbers are the evidence that corroborate this story as Sioux Falls once again saw record-breaking growth in 2022. In January, I stood alongside our Director of Planning and Development Services, Jeff Eckhoff, to announce the building permit statistics for the entirety of 2022. The City of Sioux Falls issued $1.93 billion worth of permits, almost a 75% increase from 2021, which was another historic year.

Mayor TenHaken and Jeff Eckhoff, Director of Planning and Development Services, announce record building permit statistics at a press conference in January.

We know some of the increase in permit valuation can be attributed to inflation and the escalation in supply costs, but that’s only part of the story. Sioux Falls permitted 18 projects worth more than $20 million. The permits issued throughout 2022 were diversified between commercial and residential, which is important in our efforts to continue to keep Sioux Falls investable. Commercial construction included permits for manufacturing; office, educational and institutional occupancies; and other buildings like strip malls, hotels, and restaurants. This is what attracts people to move to our great city.

Approximately 6,284 people were added to Sioux Falls in 2022. The standard percentage of growth in any year is between 2-2.5%, but we hit 3.5% in 2021 and 3.1% in 2022, bringing our total population estimate for the city to 208,884.

One of the big questions people are asking is if we’ll be able to sustain this growth at such a rapid pace. As long as we continue to strive to provide a safe community and prioritize quality of life investments, I do expect us to grow, but likely not at the historic rate we have been the past couple of years. Growth comes with its challenges, and one of those is housing. Several organizations have been incredible partners in helping confront the housing shortage head on.

As long as we continue to strive to provide a safe community and prioritize quality of life investments, I do expect us to grow, but likely not at the historic rate we have been the past couple of years.

The number of housing units permitted in Sioux Falls hit another record in 2022 with a total of 4,384 dwelling units, an increase of almost 40% from 2021. Several apartment projects can take credit for a large portion of that number, but 636 single-family homes and 405 town homes were also permitted. Although these numbers are now leveling off to what we would consider more average building volumes, they’re still phenomenal given so many factors, including the time of economic uncertainty we’re in.

Many business owners are grappling with high labor costs, a low unemployment rate, and increased costs for materials. Know that the City of Sioux Falls as your government partner is not immune to inflation, and we’re traveling this path alongside you. Just as we have in the past, we will carefully evaluate bids as they come in for projects and make the right decision at the right time while supporting our continual need for more housing units in our city.

As I look to the year ahead, I recognize the challenges we all will face, but I’m optimistic businesses will continue to see the value in Sioux Falls. Collectively with organizations locally and regionally, we’ll remain focused on providing all residents a safe community where they can work, live, and thrive.

A full permit report for 2022 can be found at siouxfalls.org/planning-dev/building/permits/statistics.