The Local Government Affairs Committee exists to keep our members connected to the decisions shaping our communities. Local policies on housing, growth, and infrastructure don’t just influence city planning, they determine the opportunities and challenges that builders and developers will face for years to come.
At our most recent meeting, the focus turned to Harrisburg, a community whose story of growth is remarkable. In 2013, Harrisburg’s population was just under 5,000. By 2023, it had nearly doubled to 9,416. Projections now show that by 2033, the city could reach more than 18,300 residents. That is extraordinary growth in a single generation, and it has big implications for housing.
Population Chart
The draft Housing Study shared with our committee laid out those needs in clear numbers. Over the next decade, Harrisburg will require an additional 3,041 owner-occupied homes. On top of that, nearly 900 new rental units will be needed to keep pace with demand. These aren’t abstract figures, they represent families, teachers, service workers, and professionals who will need a place to call home.
Housing Models
Costs are rising, too. The average permitted cost to build a single-family home has climbed from $243,000 in 2021 to nearly $397,000 in 2024. While incomes in Harrisburg tend to be higher than the state average, the workforce includes many in education and service industries. That means a healthy mix of housing, both affordable and higher-end, will be necessary to support sustainable growth.
Average Permitted Cost
The study also underscored the importance of quality. Harrisburg’s housing stock is still overwhelmingly new, and the city has an opportunity to plan now for long-term maintenance and neighborhood stability.
But perhaps the most striking piece of the conversation wasn’t just the numbers, it was the map of future growth boundaries. The map (see below) shows Harrisburg’s projected expansion overlapping with Sioux Falls and Tea. What used to be clear, separate lines between these communities are now converging. This overlap tells an important story: as Harrisburg grows, it is no longer just about one city’s future, it’s about how the region as a whole will grow together.
Boundary Map
For builders, developers, and community leaders, those boundary lines signal where tomorrow’s neighborhoods, schools, and commercial hubs will take shape. They also highlight the importance of collaboration. Growth in Harrisburg will influence Sioux Falls and Tea, just as growth in those communities will shape Harrisburg’s future. Seeing it all laid out on a single map was a powerful reminder that our region’s growth is interconnected.
For our industry, the takeaway is clear: Harrisburg is on a path of extraordinary expansion, and that path will directly impact builders across the Sioux Empire. Whether it’s the demand for single-family neighborhoods, new multifamily developments, or creative solutions for affordability, we will be at the center of meeting these needs.
Growth like Harrisburg’s is both a challenge and an opportunity. With thousands of new residents on the horizon and demand for housing at every level, the decisions made today will shape the community for decades to come. For builders, developers, and local leaders alike, it’s a chance to turn rapid growth into a success story, one that creates opportunity, strengthens neighborhoods, and ensures the region continues to thrive.
