SIOUX FALLS, S.D. (KELO) — The city of Sioux Falls has released the final total for building permits in 2022, which came in just shy of two billion dollars. There are many major projects that helped the city reach $1.93 billion in building permits last year, but in tonight’s Your Money Matters, why new multi-housing projects stand out in a big way in 2022.

You can find large, new apartment buildings under construction in all corners of Sioux Falls right now.

“We’re in the southeast, southwest, northwest…we’re also looking at a large piece of land on the northeast side of town,” Erica Mullaly, a Partner with Cresten Capital Holdings said.

In 2022, Cresten Capital alone permitted more than 750 multi-housing units.

“We had over 3,300 apartment units permitted this year,” Jeff Eckoff, the Director of Planning & Development Services for the City of Sioux Falls said.

That’s an 84 percent increase from last year, more than double what the city saw in 2020 and five times the number of apartments added in 2019.

“That’s a response to the population growth we’ve seen and the demand for that type of housing,” Eckoff said.

Over the past two years, the city has added nearly 13,000 new residents, putting a crunch on housing.

“Some people will say why are we building so many townhomes, why are we building so many apartments? It’s like, well, they’re 98 percent occupied, so there’s a demand for those sorts of housing units,” Sioux Falls Mayor Paul TenHaken said.

“People love Sioux Falls still, they’re still moving here, we still have bit of a shortage for housing for people,” Mullaly said.

With all of their projects added in 2022, Cresten Capital’s multi-housing portfolio is now up to 1,500 units.

“Some are leasing now, some will start leasing first quarter,” Mullaly said. “Typically we start pre-leasing a building 60 days before it’s ready to be moved into.”

With so many new apartments coming to town, there’s a really wide range, from affordable housing to luxury housing like Cresten Capital’s new Loft 224, offering a more than 3,000 square foot 3-bedroom apartment with rooftop patio right on Phillips Avenue in downtown Sioux Falls.

“We’re in all four corners of the city as well for a different variety for whatever the consumer is looking for,” Mullaly said.

Once all of the new 2022 apartments and townhomes are available, city leaders hope rental prices will stabilize. Sioux Falls residents saw an average of a 27 percent increase in rent last year.

“Will we see a lessening of the housing crunch? That lessening will happen when people stop moving here, as long as people keep moving here and there’s a demand, we’re going to continue to see those permits cycling and growing,” Mayor Tenhaken said.​

Mullaly says she doesn’t think the developers in the city will have any problem filling all of the apartments that were permitted in 2022.

“I think people will continue to need a place to live, people will continue to see everything that Sioux Falls has to offer and that’s going to continue to drive the demand,” Mullaly said

Both developers and city leaders expect to see continued growth in 2023, but nowhere near the record levels we saw this year.