RAPID CITY, SD—The City issued 206 building permits with a combined valuation of more than $17.8 million in March. For the first quarter of 2025, the City has issued 496 building permits with a total combined valuation of more than $57.8 million.
City officials indicate the first quarter totals are down compared to similar periods in recent years. The January through March valuation total is the lowest valuation total for the first quarter of the year since 2020 ($51.8 million) and 2015 ($56.6 million). March 2020 was the beginning of the COVID-19 pandemic period, which initiated a four-month period of sluggish permit valuation totals.
By comparison, building permit valuation totals were higher for the first quarter in recent years with $95.84 million recorded in 2024, $117.74 million in 2023, 91.43 million in 2022 and $74.80 million in 2021.
“We’ve been here before,” said Community Development Director Vicki Fisher. “Building permit activity and valuation totals fluctuate and we’re feeling the impacts with the current uncertainty in the marketplace, with continued high interest rates and cost of materials.
“In the 2008 time frame, during the Great Recession period, permits and valuation totals took a huge dip. This current slowdown in activity is not unique to Rapid City. Numerous communities in our region and throughout the country are experiencing impacts in one way or the other from high interest rates, cost of materials and a level of uncertainty. During a time of transition, it’s not uncommon for there to be a slow down as builders, contractors, developers and home buyers take a wait-and-see approach.”
Fisher and City officials anticipate the current trend is short-lived with various indicators showing continued growth in the area. Fisher says lower interest rates would help foster the building of single-family homes in the area while the building of apartment complexes may slow in the short-term.
