Sioux Falls Housing Market - August 2021

The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future. Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List.

New Listings in the Sioux Falls region decreased 3.2 percent to 613. Pending Sales were up 47.8 percent to 739. Inventory levels fell 37.3 percent to 1,106 units.

Prices continued to gain traction. The Median Sales Price increased 17.3 percent to $274,900. Days on Market was down 11.8 percent to 67 days. Sellers were encouraged as Months’ Supply of Homes for Sale was down 45.2 percent to 2.3 months.

In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, according to the Commerce Department. Single-family home construction declined 4.5%, and multi-family home construction, which includes condos and apartment buildings, was also down, falling by 13%. Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.

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