Rental prices spiking with housing market and job growth

Local News

SIOUX FALLS, S.D. (KELO) — Bender Midwest’s Property Manager Lori Marsh spends a lot of her time returning messages to potential tenants.

In just the last couple of months, she’s been busy with an increase in rental inquiries at her two properties, with at least 20 people on both waiting lists.

“We are 100 percent full and 100 percent spoken for going out two months,” Marsh said.

Usually, she gets about 15 move out notices a month. But now that number dropped to two or three.

“I’ve had renters that have given notice and then taken it back because their house deal fell through,” Marsh said.

The city’s tight housing market is now translating to a costly rental market.

“There’s really low unemployment, there are people moving here for job opportunities, and that’s always the challenge with economic development,” Professor of economics at Augustana University and State Senator Reynold Nesiba said. “You need new jobs, but you also need workforce housing for those employees as well.”

This desire to relocate has caused rental prices to rise more than 4-percent over the last year in Sioux Falls. While we did see a dip in rental prices during COVID-19, prices have already risen to above pre-pandemic levels.

There could be relief on the horizon. Already this year, developers have applied for almost one-billion dollars worth of building permits for apartment buildings and condos in the city.

“I hope that happens fast enough that we don’t get too much more upward pressure on housing,” Nesiba said.

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