Aug. 14, 2020

Sioux Falls continues to see demand for apartments, with vacancy nearly unchanged since January despite new additions to the market.

The overall vacancy rate was 7.91 percent in July, according to a survey of members taken by the South Dakota Multi-Housing Association, up just slightly from the 7.56 percent rate reported in January and the 7.69 percent vacancy last July.

“Overall, the vacancy rate has remained steady with little change since this time last year. Sioux Falls continues to see growth in additional units being built, with approximately 206 more units than last year,” said Amy Ibis, chair of South Dakota Multi-Housing Association.

Property owners and property management companies continue to work with the residents who are struggling to make the monthly payments and provide resources to help them, she added.

“Communication is key between all parties. I believe we as owners and residents do that to a greater degree in South Dakota,” Ibis said.

“Leasing continues to be strong, with tenants still moving despite the pandemic. I do not see much of a change in finishing out 2020 with the continual growth and the ability to lease the units.”

HUD properties saw a significant decrease in vacancy, from 6.62 percent vacant in January to 3.77 percent vacant in July. Market-rate properties saw a slight increase in vacancy to 7.6 percent in July compared with 7.4 percent in January.

Virtual leasing helped fill many units during the pandemic, the association reported.