Study recommends more housing

With the city of Dell Rapids’ population growth projected at 282 people over the next five years, a housing study recommended construction of more owner-occupied houses and rental units.

Steve Griesert of Community Partners Research presented the information Monday, April 18, during the Dell Rapids City Council’s regular meeting.

In 2015, Dell Rapids had an estimated population of 3,824, and the city is projected expand to 4,106 people in 2020, according to Esri Inc.

Dell Rapids’ projected population growth was based on the data from 2000 to 2010, when the city gained 653 people.

“I’ve worked with about 60 cities in South Dakota now, and (these) are really good gains,” Griesert said.

Community Partners Research recommended building 16 to 20 new owner-occupied housing units annually from 2016 to 2022, and 52 to 62 total rental units during that span.

Griesert said the housing market in Dell Rapids has good value, so people have options of looking at existing homes on the market or potentially building.

The study looked at 328 homes in four neighborhoods: 53 percent were in perfect condition; 31 percent needed minor repairs; 16 percent, major repairs; and two homes that should be torn down.

“We get into communities where we find that a third of the homes should be torn down, so you have good stock,” Griesert said. “That reflects the value.”

Out of the 448 rental units in Dell Rapids, Griesert said 130 were used to determine occupancy, and only one was empty for an overall vacancy rate of 0.8 percent.

“We consider 3 to 5 percent healthy,” he said. “In that range, landlords can still make money, but renters still have options, rentals to look at.”

Griesert also noted that the Odd Fellows building is being converted into 11 rental units and that four units are completed and occupied. The other seven are under construction and estimated to be completed in the next two years.

Mark Crisp, city council president and owner of Mark Crisp Construction, weighed in on the numbers.

“The construction has stopped on more rental housing, simply because we thought Dell Rapids wasn’t ready for the rent that it’s going to take with what new construction is costing today,” he said. “But looking at your findings (that’s not the case).”

About a third of households in Dell Rapids are comprised of a mom, dad and children under age 18, the study said.

“You knock on three doors in Dell Rapids, you’re going to find one on average with mom, dad and kids,” he said. “That’s pretty darn good. We see 1 in 10, 1 in 12, and the average is about 1 in 7, so that tells us that there’s a lot of families in the community.”

Average income of those households went through the roof from 2000 to 2014. As households grew from 1,101 to 1,430, the amount of households making $0 to $14,999 per year fell from 190 to 111, a 79 percent decrease, while the number of households making $100,000 or more grew from 51 to 330. That’s a gain of 279 percent.

The study also compared Dell Rapids’ growth with other area communities. While Dell Rapids’ growth of 844 people from 2000 to 2015 – a 28.3 percent increase – was seventh out of the seven communities, Griesert said there was still significant growth.

Harrisburg grew from less than 1,000 people in 2000 to 4,030 in 2015, a 420.7 percent increase, and Tea grew 163.8 percent.

Along with Esri, the study utilized information from the U.S. Census Bureau, American Community Survey, South Dakota State Data Center, interviews with city officials and staff, area and state housing agencies, interviews with developers and housing stakeholders, rental property surveys, housing and mobile home condition surveys and records and data from the City of Dell Rapids and Minnehaha County.