Sioux Falls Continues to Grow in Both Population and New Building Permits
Investors in new home construction often overlook Sioux Falls, but the city is a growing market with a cost of living 10 percent lower than the national average. In 2024, Sioux Falls grew by nearly 5,700 people, putting its population at an estimated 219,588.
As Kevin Smith, the city’s assistant director of Planning and Development Services, put it, “Sioux Falls is growing in a steady, balanced way, and that is in great part because of our public and private partners who drive and respond to growth, and the planning our community did decades ago that we are reaping the benefits of today.” But what does that mean for investors? It’s simple: if you’re looking to invest in new home construction, whether by building a home for yourself or constructing an investment property, Sioux Falls, SD is a wonderful place to do it.
However, you don’t have to just take our word for it. Keep reading to explore some of the hard numbers behind the city’s growth, learn how all the new construction is affecting property values, and see just why you should build in Sioux Falls.
Growth by the Numbers
Building permits in Sioux Falls paint a compelling picture of robust growth. Per the city’s 2024 report, the 6,183 evaluations completed during the calendar year totaled more than $1 billion, marking the fourth-highest total valuation in the city’s history. The calendar year of 2024 also marked the fourth consecutive year of higher-than $1 billion in total construction valuation in Sioux Falls. And that increase has been spread out among several types of housing. New single-family units jumped by 26 percent from 2023 to 2024. For townhouses, 344 permits were issued by the city during 2024, a slight increase from the 331 issued during 2023. Finally, 14 building projects in Sioux Falls during 2024 exceeded a total of $10 million.
Rising Property Values
Even with this increase in the supply of housing, home prices in Sioux Falls are not falling – in fact, they’re rising. The typical home value in Sioux Falls is now more than $321,700 according to Zillow, marking a one-year increase of 3.3 percent. The median listing price of a home in the city is more than $329,600. According to Realtor.com, the median number of days a home stays on the market is just 44.
“Despite some of the ebbs and flows of the economy, the numbers indicate Sioux Falls is in a strong position. Our community remains a place where people want to invest and raise their families,” said Mayor Paul TenHaken. “In 2025, we will continue to strategically plan for growth while dreaming big in the process, striving to keep Sioux Falls investible and build upon the momentum of 2024.”
Why Build in Sioux Falls?
As the city and immediate area continue to grow and prosper, more and more people are choosing to have their dream home built in the Sioux Falls area. The city boasts many distinct, vibrant neighborhoods, all of which offer a range of housing styles and cater to distinct lifestyles. This makes it easy for newcomers to the city to find a neighborhood that feels like home.
Choosing to build your home from the ground up is a wise investment into your family’s long-term future. All the materials used will be brand new. Additionally, many of the newer building materials are more energy efficient, so you’ll spend less on monthly utility bills over the long haul than you might in an older home of comparable size. Finally, the areas in and around Sioux Falls with the most new construction will see property values rise, offering exceptional long-term value.
Of course, the most obvious benefit of building a custom home is that you get to choose literally every aspect of it. If you prefer an open floor plan, you’ve got it. If you want a walk-in shower and his-and-hers sinks in the master bathroom, that can happen as well. The sky’s the limit when it comes to your new home in Sioux Falls, SD.
Most importantly, we simplify your journey by offering land acquisition services for prospective homeowners.
Build Your Dream Home in Sioux Falls, SD With the Help of Davis Custom Homes
Davis Custom Homes is a full-service home builder serving the Sioux Falls, SD area. Our priority is working with our customers to make their home dreams come true – and of course, build their dream homes. We are locally and family owned, and we get to know each of our clients personally so we can better serve them.
If you’re ready to take advantage of the hot Sioux Falls, SD housing market, Davis Custom Homes wants to make your dream home everything you want it to be. Contact us today to request a consultation!