By Jack Siebold, MyTown Editor
Residential growth in Rapid City has already surpassed last year’s total growth; and that was a major boom year.
In building permit data released by the city this week, the number of single-family homes stays on par with the last three years but overall residential units (i.e., apartments) pushed the permit numbers to 432 at the end of August. That’s already ahead of last year’s total of 405 units; which were double the previous two years.
It is a pace that Brad Solon, division manager for Rapid City’s building services is happy with. “If you’re doing a steady amount of housing, you’re doing good,” he said. “We’d rather have permits coming in steady. It means all the contractors and suppliers are working.”
The single-family home business is the steady part of the building industry. This year’s 168 home permits is close to the four-year average of 171. In that time, the best year was 2010, just after the national housing bust. “It’s funny,” Solon said. “Our housing didn’t really dip in 2009.”
When it comes to the value of new home construction, there is a dip. Total value of single family and multi-unit construction so far this year is $53 million. That’s less than last year’s almost $66 million; although still better than the $34 million average in the previous two years.
The rest of the city’s growth mirrors the home business.
Commercial construction permits (hotels, banks, stores and service stations) so far this year are 13, the same as all of last year. However, the valuation of those permits is nearly double at more than $30 million. Industrial growth has flattened out with only two permits issued at a valuation of $3.8 million, a little less than last year. Of course, there were no industrial permits issued in 2010 or 2011.
Total permit values so far this year amount to $157 million; about $50 million less than 2012.