This is a paid piece from the Sioux Metro Growth Alliance.
Simplified: It's no secret the Sioux Metro area is growing, but a look at building permit statistics from 2023 really puts that growth into perspective. Outside of the City of Sioux Falls, communities in the region issued permits for a combined more than $320 million in projects.
Why it matters
- Five communities – Baltic, Brandon, Crooks, Harrisburg and Hartford – saw more than $10 million in building permit valuation last year, with the strongest growth in Harrisburg at more than $65 million in permitted projects. And Tea set a record with its first-ever nine-figure year.
- For context, the City of Sioux Falls issued $1.1 billion in building permit valuation in 2023, down from a record $1.9 billion the year prior – which included permits for some major downtown projects.
- And while many communities saw a decrease in permit valuations as rising costs make development trickier, Tea actually saw an increase year-over-year. The city broke a permit record with more than $105.8 million.
"Tea is also in a position in the next few years where we become a place where it's not just local people supporting local businesses, but more of a regional hub," City Administrator Justin Weiland said. "We are beginning to attract people to the community to come here, stay here and spend their money in our community."
Tell me more about growth in Tea
Growth tends to follow a pattern of starting with residential growth, and once people are living in a place, the businesses follow.
Last year, Tea saw a significant shift from more residential permits to more commercial and industrial growth.
- It's not unique to Tea, but the community is at a point now where its population is established enough to support more commercial activity, Weiland said.
That growth is most evident in the Bakker Landing development, which will include a new Orthopedic Institute facility as well as a Starbucks, Maker's Exchange, Thornton Flooring with more announcements to come this year.
- Commercial growth will continue in Tea with another more than 100+ acre development off of Gateway Boulevard just west of the airport, as well as more anticipated development along the newly constructed 85th Street.
Tell me more about growth in other regional communities
Brandon approved more than $48 million in building permits, about half of what it saw the previous year – a similar trajectory to what Sioux Falls saw.
Harrisburg saw $65.6 million in projects, and Hartford saw close to $41 million.
Trailing those communities were Baltic at more than $27 million, and Crooks at $10.9 million. Lennox saw more than $8 million in building permits.
Canton, Centerville, Garretson and Salem also all saw more than $1 million in projects.
"Despite some economic headwinds, it's clear the Sioux Metro is poised for continued growth," Sioux Metro Growth Alliance President and CEO Tyler Tordsen said. "We are here to help these communities every step of the way."
