Sioux Falls metro population tops 266K as jobs drive growth

Sioux Falls’ population continues to climb as jobs and development bring more families to the area.

The four-county metropolitan area and the rest of South Dakota also added residents, according to 2018 estimates released last week by the U.S. Census Bureau.

Growth in the larger Sioux Falls metro area, including Minnehaha, Lincoln, Turner and McCook counties accounted for more than half of the state’s estimated population growth.

The metro area population climbed to 266,100 last year, according to the data.

“I think one of the big drivers is that we have jobs available to employ those folks,” said Bob Mundt, CEO and president of the Sioux Falls Development Foundation.

Sioux Falls’ unemployment rate remains well under 3%, lower than state and national averages. Hiring by the city’s health care systems has contributed to the steady growth, as have new positions in the local financial services industry as well as manufacturing and skilled trades, Mundt said.  

The annual population estimates from the Census Bureau are based on data from the American Community Survey and part of a national data set.

Some key takeaways from the Census' estimates:

• THE FOUR-COUNTY METRO AREA ADDED 6,450: Comparing the growth in larger metro area to the city shows local communities outside of Sioux Falls are also growing. The city and its surrounding communities experienced a 2.5% jump from 2017 in the number of people calling the area home.
• SOUTH DAKOTA'S POPULATION GREW BY 1.4%: That’s a slower rate than the metro and city, indicating a good chunk of the state’s population growth in 2018 was driven by increases in Sioux Falls and the surrounding area. The state’s population reached 882,235, an increase of 12,569 from the previous year.
• THE CITY POPULATION ALSO GREW: Data released by the Census last week also included Sioux Falls city population estimates, but the July survey is less current than year-end estimates released by City Hall earlier this year, which also incorporated Census data. Those numbers also showed accelerated growth as the city's population reached 187,200.

Economic growth in Sioux Falls is responsible for much of the rise, but many of the communities around the city have made an extra effort to also draw new families and businesses, said Nick Fosheim, who heads the economic development groups for Minnehaha and Lincoln counties.

Harrisburg and Brandon have experienced population booms in recent years, but other communities such as Tea, Dell Rapids, Lennox and Canton are making special efforts to develop more residential and commercial property.

“We’re in this together,” Fosheim said. “And it’s like we say, the rising tide lifts all boats.”