Original article found on Argus Leader: https://www.argusleader.com/story/news/business-journal/2019/01/22/sioux-falls-home-builders-construction-2019-outlook-real-estate/2579162002/
Author: Patrick Anderson, Sioux Falls Argus Leader
Dusty Rallis built his first home in 1999 and has been growing his portfolio of custom homes ever since. The owner of Rallis Construction was named board president this week for the Home Builders Association of the Sioux Empire. He brings nearly two decades of experience in the local housing market to the role.
Rallis expects another strong year for builders of single-family homes in 2019, even as local builders continue to be limited by workforce shortages.
GROWTH IN EASTERN SIOUX FALLS
Rallis expects it to be a busy year on the east side of town as more single-family home builders shift their attention away from southern Sioux Falls.
The reason? New development relies on being able to hook-up to city utilities, particularly sewer, Rallis said.
"That’s dictated by the sewer-ability," he said.
The amount of available land in southern Sioux Falls is shrinking, and for now there seems to be less activity slated for the northern and western parts of town, Rallis said.
BLAME MILLENNIALS? NOT IN SIOUX FALLS
While young adults across the United States are less likely to buy a home, Rallis thinks Sioux Falls is bucking the trend.
"In Sioux Falls, millennials want to own," Rallis said.
The city's steady population growth is the biggest driver of new construction in the city, and there's plenty to go around. Apartment builders also logged some of their busiest years in 2015 and 2016.
Single-family home builders added 672 homes last year, with the combined value climbing to $151.6 million.
STILL LOOKING FOR WORKERS
Rallis said the Home Builders Association will continue and expand its workforce development efforts as the industry looks to replace its aging workers.
The ongoing short supply of labor has affected all facets of the industry, he said.
"Every aspect, from guys doing excavation to the foundations crews, to framers, HVAC," Rallis said. "The workforce is limited."
The local association is working on new programs at the Harrisburg School District and Southeast Tech to add to its existing catalog of classes and internships for young people interested in construction.