SIOUX FALLS, S.D. (KELO) — Sioux Falls is experiencing a housing boom right now. Building permits for single family homes and apartments have more than doubled in the past two years.
In 2019, from January through March the city issued 242 building permits; this year during that same time, the city has issued 727.
While that sounds like good news, builders are having a hard time keeping up with the demand.
Alan Amdahl says in the 40+ years of building homes, he’s never seen anything like it.
“No never like this, this is 10 times what we had 10 years ago,” Amdahl said.
City officials say there are a few factors leading to the record number of building permits.
“The large amount of job announcements that has happened recently with Amazon, that’s created a lot of buzz,” city planner Jeff Eckhoff said.
Secondly, interest rates are at historic lows.
“And we have a lot of people moving to South Dakota right now or are looking at moving here, so all those things are combining together to create this perfect storm in demand right now,” Eckhoff said.
Builders are doing their best to keep up, but they say a shortage of building supplies, available lots and a record low inventory of homes for sale are hindering their efforts.
That’s why the demand is so high right now.
“We showed a house the other day and there were 19 different couples lined up in the driveway to look at this house and it sold for $30 thousand dollars over the list price,” Amdahl said.
Amdahl says if you’re thinking of selling your home, there’s a pretty good chance you’ll make money, but good luck finding another home on the market or having one built.
“If you want to build, grab a builder with both hands and hang on,” Amdahl said.
There are developers out there who have land to build on, but until the city gets sewer lines to those areas, they say they can’t start building on it.