The Small Midwest Market Where the Most Jobs and Apartments Are Headed
Which small apartment market has one of the nation’s highest five-year inventory growth rates and job growth rates? Sioux Falls, SD has a population of about 272,000 residents and nearly 27,000 existing apartment units, according to data from RealPage Market Analytics. Since 3rd quarter 2018, both the jobs market and apartment base have swelled considerably. With nearly 15,000 jobs added in the five-years ending 3rd quarter 2023, total employment in Sioux Falls now stands at over 174,000 positions, according to the Bureau of Labor Statistics. That subsequent five-year employment growth rate of 9.4% was the best rate in the Midwest and a top 40 performance among the nation’s 150 largest apartment markets. Meanwhile, the 5,300 apartment units added in the market since 3rd quarter 2018 translates to a 24.7% jump in existing inventory – ranking within the nation’s top 10 growth among the top 150 markets. And more inventory is on the way in Sioux Falls. As of 3rd quarter 2023, another 3,200 units were under construction in Sioux Falls, delivering over the next approximately 18 months.