Even Amid Softened Demand, Sioux Falls Occupancy Persists
The apartment market in Sioux Falls, SD has gotten consistently stronger over the last handful of years. Since about 2016, occupancy in this market with about 24,000 existing units has been steadily climbing as a growing population has gobbled up moderate levels of new apartment supply. Even as nationwide demand has pulled back considerably in the back half of 2022, Sioux Falls reported occupancy of 97.2% in 4th quarter 2022, according to data from RealPage Market Analytics. Annual supply has been moderate, averaging under 700 units per year in the since 2017. Demand, meanwhile, has easily outpaced that rate, averaging about 850 units per year in that time, though annual absorption got as high as 1,730 units in early 2022. That strong demand makes a lot of sense when put into perspective of recent demographic tailwinds. The Sioux Falls, SD population has grown over 10% in the last five years to hover around 272,400 people, according to the latest data from the U.S. Census Bureau. That surge in residents was seen across nearly every age range, with the biggest jumps in residents aged 65 and older and ages 35 to 44.