Commercial construction spending has dropped in Sioux Falls.
And the downturn reported by the Sioux Falls finance office this week comes as total building permit valuations have fallen by about $230 million through the first nine months of 2026 compared to the amount of building activity in the city a year ago.
“With interest rates continuing to go up, making it hard to move projects forward,” Finance Director Shawn Pritchett told councilors Tuesday while pointing to the nation's unrelenting inflation and economic uncertainty as headwinds that are dragging economic activity in Sioux Falls.
