Sioux Falls is one of the fastest growing cities in the region. The City of Sioux Falls estimates 224,676 residents for 2025, after adding 5,088 people in a single year. Nearby Harrisburg has nearly doubled in about six years. Big employers like Sanford Health, Avera Health, the Sioux Falls School District and Smithfield Foods keep the jobs coming.
Here is the problem. The city issued permits for only 357 new single family houses in 2025, the lowest total in the past 10 years, down from 742 in 2020. City planners point to interest rates and people staying put longer. Meanwhile, Redfin shows a median sale price of about $335,000 for the three months ending September 2026, with homes going under contract in a median of 27 days.
When growth outpaces new construction, buyers end up competing for the same small pool of homes. A REDI-BUILT home adds a new option to that pool.
For first time buyers, the bottom of the market matters more than the median. Redfin’s price tiers put the typical starter home in Sioux Falls (the 5th to 35th percentile of sales) at about $240,000 in January 2026, and those homes tend to be older and sell quickly. Many buyers are finding that land in a nearby town or county, plus a new REDI-BUILT home, gives them more house and fewer repair surprises than an older starter home in the city.
Centennial REDI-BUILT homes are built in a controlled factory environment by Friendship Homes, to the same residential building code as a home built on site. That means:
And it comes ready to live in, with:
With many homes built on site, the electrical is run but not finished, and there is no manufacturer warranty at all.
The Sioux Falls residential code sets the local frost line at 42 inches, and footings must sit below it unless another approved frost protection method is used. Rules can differ by town and county, so confirm the number with the office that covers your address before digging.
Our lot sits south of the city near Tea, which puts a lot of our buyers in Lincoln County. Here is where to start:
Always confirm the zoning district allows the home type you want before you buy land.
Can I put a REDI-BUILT home in Harrisburg, Tea or Hartford? It depends on the town’s zoning and any subdivision covenants. Many newer subdivisions have their own rules, so check before you buy the lot. Acreages in Lincoln, Turner, McCook and Minnehaha counties are often a good fit.
Homes sell fast here. How does REDI-BUILT help? Instead of competing for a resale listing, you choose a new home and plan your own timeline.
Is the house really the same quality as one built on site? It is built to the same residential building code, in a controlled environment, with inspections along the way. Come walk through one on our lot and judge for yourself.
Do you deliver to Iowa? Our area includes Sioux City, Iowa. Ask us about your specific location.
Centennial Homes of Sioux Falls is 4 miles south of the Empire Mall at Tea Exit 73 (47059 104th St). Open Monday to Friday 8 AM to 6 PM, Saturday 8 AM to 5 PM, or any time by appointment.
Call (605) 368-5884 or plan your visit. Family owned since 1969.