A look at workforce housing needs in Sioux Falls

Local News

SIOUX FALLS, S.D. (KELO) — There’s a demand for more homes in Sioux Falls over the next several years.

In his State of the City address, Sioux Falls Mayor Paul TenHaken said at least 7,000 additional homes will be needed by 2025 because of projected population growth.

There’s a need for all levels of housing in Sioux Falls.

Of the 7,000 plus homes or units needed over the next several years, about half need to be for households that make 80% to 120% of the area median income.

According to Housing and Urban Development, that was $69,000 to $103,400 for a household of four in 2020.

“That’s in kind of that entry-level workforce housing, so it’s in huge demand,” City of Sioux Falls Director of Planning and Development Services Jeff Eckhoff said.

Eckhoff says there’s no single approach to meeting the need.

“Some of it is new construction. Obviously, multi-family is a big part of that because of the cost. Also, we’re looking at a lot of our existing neighborhoods. We’re seeing a lot of families move into older housing stock because it’s affordable, more in the core of our city, and so we have to do whatever we can to keep those neighborhoods investable, safe, make them attractive for those families,” Eckhoff said.

City of Sioux Falls Housing Compliance Coordinator Al Roettger says Sioux Falls isn’t the only city dealing with the issue.

“I think it’s all across the country. There’s cities struggling with serving people in these income ranges we’re talking about, so I don’t know that the problem is specific to Sioux Falls, but Sioux Falls is a growing community. There’s more people moving here all the time, so it just stands to reason that some of them aren’t going to be as well off as others,” City of Sioux Falls Housing Compliance Coordinator Roettger said.

“Housing is incredibly complex, and everytime you pull back one layer there’s three more to go through,” Eckhoff said.

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