Sioux Falls issued about $98 million in building permits in October, a little under what the city usually sees that month, and the year as a whole is running well behind 2025's pace (via SiouxFalls.Business). Look a little closer, though, and the numbers tell a more mixed story, with apartments booming and remodel work holding up.
Through October, total permit value stands at $894.2 million, according to the city's building statistics. That compares with about $1.22 billion over the same stretch of 2025 and $964.7 million in 2024 (City of Sioux Falls). Last year was unusually strong; the city finished 2025 at $1.33 billion, its fifth straight year over $1 billion (SDPB).
The city noted that October is usually a busy month because contractors are trying to lock in winter work.
New commercial construction is at $442.6 million for the year, down from $662.7 million at this point in 2025. Commercial additions and remodels sit at $208.1 million. That's below last year's $282.8 million but well above 2024's $155 million, and the city still calls it the most active part of the commercial market.
On the residential side, new construction is at $162 million through October, compared with $197.7 million last year. But the unit counts point in different directions:
Single-family permits are up to 359 from 323 last year, though still well short of 2024's 483.
Multifamily units have jumped to 1,663, from 930 in 2025.
Townhome units have dropped to 172, from 365.
Residential additions and remodels add another $81.5 million for the year.
October's biggest permit was also the largest of the year so far. Lloyd Companies pulled a roughly $29 million permit on Oct. 13 for the next phase of Harvest Ridge apartments on South Ollerich Avenue, with Lloyd Construction Company as the contractor, according to the city's top projects list (City of Sioux Falls). The city's apartment list shows that phase as five buildings and 322 units (City of Sioux Falls).
The other major October permit was for The Galerie apartments at 5401 S. Loop Place, built by Empire Co. Commercial. City records list it at about $12.5 million, six buildings and 80 units.
Those two join a crowded 2026 apartment list. City records show 1,560 apartment units permitted this year, including Foss Fields Phase 2 (252 units), Yukon at Benson Phase IIb (168 units) and University Hills Building 6 (130 units).
Why it matters for Contractors
If you're a small residential builder in Sioux Falls, the slowdown in total dollars matters less than where the work is. Single-family starts are actually up a bit from last year's 10-year low, and apartment construction is running hot. Multifamily projects that big need a lot of subs: framing, drywall, flooring, cabinets, electrical, plumbing and HVAC.
The remodel numbers are worth noticing, too. Commercial additions and remodels have stayed the strongest commercial category, and residential remodels are still adding up. For a small shop, tenant finish and remodel work can keep crews steady when new construction cools.
The townhome drop is the one soft spot. If that's been your niche, it may be time to look at subcontracting on the apartment side or chasing remodel work over the winter.
November figures should come out from the city in early December.