SIOUX FALLS, S.D. (KELO) — Sioux Falls continues to break records for building permits but the housing growth happening in the region over the past few years is now topping national charts.

In 2021, Sioux Falls built homes at the 5th fastest growth rate in the nation, that’s according to a new report by the Inspection Support Network. 

“We’re ahead of last year’s pace on all levels of housing, but when you look at multi housing, we’ve already permitted as many units at the end of May as we did all of last year,” Jeff Eckhoff, the Director of Planning & Development Services at City of Sioux Falls said. 

The number of new apartments going up in Sioux Falls is unlike anything the city has seen before, all in response to the rising demand for more housing.

“We have 80 to 100 people at any point out looking for apartments that they can’t find,” Brent Tucker, the Director of Housing Development at Affordable Housing Solutions said. 

With an occupancy rate of 97 percent or higher, snagging any open apartment in Sioux Falls is tough, but finding one with affordable rent is nearly impossible.

“Affordable housing is really what’s lacking in Sioux Falls. There are many different apartment complexes going up and housing going up that people making less than 80 percent of median income simply can’t afford,” Tucker said. 

While the record housing permits show more companies are working to meet that demand, it’s still a struggle to keep up with how many people are moving to the city each year.

“There’s a lot of people moving into Sioux Falls annually, you’re looking at 3,000 to 5,000 people moving to Sioux Falls, so you’re behind before you ever get to the end line,” Tucker said. 

“Its demand, this is a very strong city, people love to live here. I think the word has gotten out about Sioux Falls and about South Dakota, we’re a very desirable place,” Eckhoff said. 

It’s why community leaders don’t expect the city’s record break housing growth to slow down any time soon.

“The permits are still coming in strong, the inquiries, the activities, the number of plans we’re seeing, the re-zonings is still staying at a very, very strong pace,” Eckhoff said. 

Friday building permit numbers through June for Sioux Falls will be released showing.  Eckhoff expects the total to be around $850 million just half way through the year.