Fewer homes are being built in Sioux Falls compared to last year

Local News

SIOUX FALLS, S.D. (KELO) — Whether it’s a hospital emergency room or an older home – more people in Sioux Falls are choosing to remodel than build new. The city’s latest building numbers show a clear trend. 

This year the city has issued $24-million worth of permits to remodel homes.

That’s $7 million more than a year ago. 

In comparison, the amount of money being spent on new homes in the city is down more than $8-million.

There’s a similar shift when it comes to businesses. 

The city has issued $71-million worth of permits for business remodels. That’s a $14 million jump from a year ago.

So what’s the reason behind the trend?  We caught up with a local builder to find out. 

The city has issued 20-percent fewer permits compared to last year. 

Home builders say you can blame the weather. 

“We haven’t seen this beautiful sunshine for a while so that’s going to be a big part of it. It’s been so wet, so we haven’t been able to work outside and obviously everybody’s got to make a living so you’re going to see a lot more of it that was indoors,” Dusty Rallis said.

Dusty Rallis with the Sioux Falls Home Builders Association says our cold, wet spring may also have affected home sales.

“The weather wasn’t beautiful so maybe somebody didn’t sell their house so there might not have been as many existing homes on the market. So they’re looking at you know what do we do with our house. We like the neighborhood and we can’t find anything we like any better so why not remodel, so you’re definitely seeing some of that come into play. That always come into play,” Dusty Rallis said.

When it’s too wet to start new homes, builders will find other ways to keep busy. 

“You call up a contractor and they’ll say you know we’ll get to you when time allows and generally that remodel stuff slides in between some of the new construction homes. So that’s a lot of what we’re seeing take place right now,” Dusty Rallis said.

Now that the weather is beginning to warm up, Rallis says you will begin to see more new homes.

Overall, the city has issued more permits so far this year.  The total value is $31-million less than last year at this time. 

To see full reports, click here.

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