Building permit values surpass $675M

From new homes and apartments to twin homes and commercial buildings, 2015 was a record setting year for construction activity in Sioux Falls. City officials estimate thousands move to Sioux Falls each year, and that trend isn’t slowing based on the number and values of the building permits being issued at City Hall.

With just two days to go in the calendar year, more than 12,000 building permits have been purchased from City Hall’s building services department, valuing more than $675 million. While the number of permits is down from the 14,945 issued in 2014, 2015’s permit valuation total shattered the $619.5 million worth of construction that took place in Sioux Falls last year.

"Our strength lies in our incredible diversity. We are booming all over town, across all construction sectors and with so many, many projects," Mayor Mike Huether said Tuesday.

Construction value

It’s the third consecutive year for record construction valuation in Sioux Falls. The $675 million totaled so far in 2015 is a 1 percent increase in construction valuation from last year. The previous record construction valuation was $619,502,240 in 2014, a 15 percent increase from the 2013 construction valuation of $588,248,861.

Hailstorm fallout

Helping drive the number of permits up was the June 2014 hail storm that resulted in about 8,500 shingle and roofing permits in the six months following the weather event. The damaged roofs continued to have an impact on permit totals this year as well. More than 5,700 roofing permits were OKed in 2015.

Building Services Director Ron Bell said in a typical year, City Hall issues between 2,000 and 2,500 roofing permits.

Remodels and renovations

Even though roofing permits played a role in the record year, home renovations and remodels were the biggest factor. The number of permits issued for residential additions, repairs and remodels so far in 2015 totaled about 9,600 permits or 80 percent of the total number of building permits issued. Last year, renovations and remodels accounted for 85 percent of the total permits, and 74 percent in 2013.

Single Family homes

So far this year, 661 new single-family dwellings have been permitted, up about 1 percent from the 604 new homes built in 2014. Though better than last year, the number of single-family dwellings built in 2015 is down from the 731 single family dwelling permits issued in 2013.

Bell said the 2015 numbers exceed the level of construction activity seen during the recession years of 2009 through 2011.

Townhouses

Townhouses made up 269 of the permits issued this year, coming in just short of the record-setting 292 townhouse permits issued in 2013. The 2015 townhouse permits are up 16 percent from the 231 townhouses built in 2014.

Multifamily, apartments

Sioux Falls issued permits for 804 multi-family dwelling units in 2015, the sixth most issued in a single year. The record for multifamily dwellings was set in 1977 when 1,086 permits were issued. Last year, City Hall came close to breaking that record when 1,069 were OKed.

“Whereas this year’s multifamily units dropped 25 percent compared to last year, the last three years have consecutively seen a very strong number of new multi family dwelling units constructed,” Bell said.

Making the biggest splash in the multifamily housing count in Sioux Falls was the Hidden Hills Apartments in the Whittier Heights neighborhood. That complex will feature 180 units.

"When you are as confident as we are as a people, as a community, and as a government, you can make great things happen," Huether said. "We have a bunch of projects waiting in the wings, such as those that are waiting for the flood maps to kick in near the Mall area, so 2016 should be rock solid too."

BY THE NUMBERS - 2015*

269 Townhouse units

2 Duplex Units

661 Single Family Dwellings

804 Multifamily dwellings

60 Nursing and assisted living units

1,796 Total Units

*Through Dec. 29, 2015

PERMIT VALUES

2015 - ~$675M*

2014 – $619.5M

2013 - $588.2M

2012 - $490.5M

2011 - $291.1M

2010 – $282.9M

2009 – $297.9M

2008 – 454.1M

2007 – 523.1M

2006 - $441.8M

2005 - $463.1M

2004 – $396.9M

2003 - $346.6M

2002 - $280.3M

*Through Dec. 29, 2015