This story has been updated with comments from a Rochester, Minnesota, official.

SIOUX FALLS, S.D. (KELO) — The Sioux Falls metropolitan area grew to 304,555 persons in 2023, according to the most recent data from the U.S. Census Bureau.

The metro area had 299,079 in 2022. The metro population was 286,400 in 2020.

The metro area includes the city of Sioux Falls and the counties of Minnehaha, Lincoln, Turner and McCook.

Proximity to Sioux Falls has two sides, said Rachael Neiman, the executive director of the Brandon Valley Area Chamber of Commerce. Brandon is several miles east of Sioux Falls but the school district includes part of eastern Sioux Falls.

“Brandon has an extraordinary school district,” Neiman said of one big reason the city’s population has grown over the past several years. The city has about 11,000 residents and had 2,300 in 1978.

Residents are attracted to the school district and amenities such as parks, Neiman said.

Many Brandon residents work in Sioux Falls which means they may buy groceries or get gas in Sioux Falls. “Those are opportunities of missed sales tax in Brandon,” Neiman said.

Sales tax revenue is critical to the city’s budget.

While being close to Sioux Falls has it perks, such as work opportunities, Neiman said she reminds locals that shopping in Brandon is important to maintaining a healthy city economy.

Jennie Doyen, of the Sioux Falls Area Chamber of Commerce, said neighboring cities such as Brandon and Harrisburg work well together.

Overall, “Brandon and Sioux Falls are great neighbors to each other,” Neiman said.

Growth does benefit retailers and the service industry, Doyen said.

“When there is more people, there is more opportunity for customers, it is good for business,” Doyen said of population growth.

The growth in the Rochester, Minnesota, area hasn’t been as large as the Sioux Falls metro, but it’s been steady, Wade said.

The population of the Rochester, Minnesota, metro area is 229,077, up from 228,134 in 2022 and up from 226,337 in 2020. The estimated population of the city is about 122,000 for 2024.

The drivers of steady growth are the economy, Wade said. Although it’s known for the Mayo Clinic and other health care services, Wade said the agriculture and manufacturing economies are also strong.

As Neiman said of Brandon, a good educational system also attracts residents, Wade said.

“When you have a strong business community and a healthy business environment, something that the chamber works to support,” it attracts more business, Doyen said.

One of the chamber’s role in growth is to advocate for pro-business policies at the state and local level, Doyen said.

Wade said when a metro area has a strong economy, strong education and strong workforce, the retail businesses, restaurants and similar tend to locate in the area.

Since residents of a metro area and rural areas can buy many items online, amenities such as parks and schools become even more important, Wade said.

Other Midwest metro areas have grown since 2020.

Doyen said it’s natural to look at how metro peers are doing but “it’s not so much for comparison as to what we can do here.”

But how does the Sioux Falls metro area compare to some other cities in the Midwest?

The Sioux City, Iowa, metro area grew by roughly 1,000 persons from 143,737 to 144,402.

The Des Moines metro area remains one of the fastest growing large metro areas in the U.S. The metro area grew from 709,512 in 2020 to 737,164 in 2023. Six counties are included in the Des Moines metro area. Those counties are Polk, Dallas, Warren, Madison, Guthrie, and Jasper.

Sioux Falls is a category of smaller city metro areas, so while it’s growth outpaced the Des Moines metro, it’s not considered large metro. But the population difference between the two cities is small.

The city of Sioux Falls said the estimated population of the city is  213,891. The estimated population of the city of Des Moines hovers at around 211,000 with one estimate at 208,000.

The Sioux Falls metro is similar to the Rochester, Minnesota, metro area in that each is made up of four counties. The Rochester metro area includes the Dodge, Fillmore, Olmsted, and Wabasha.

Both Rochester and Des Moines have airports. Rochester’s airport is an international airport in large part because of the international draw of the Mayo Clinic and other medical services in the city.

According to the 2022 annual report, the airport had 168,870 passengers in 2022. As of February 2024, the airport in Des Moines had 462,881 total passengers, according to airport reports.

More than 1.3 million people flew in and out of Sioux Falls in 2023, KELOLAND News reported in February.

What about Trader Joe’s?

Doyen and Neiman said their offices do get asked about various businesses coming to their cities or metro areas.

Neiman said with a laugh that often, people will ask about a Trader Joe’s. Trader Joe’s is a supermarket with a signature line of products. It’s most often located in larger metropolitan areas.

West Des Moines, in the Des Moines metro area, and Rochester have Trader Joe’s.

Doyen said she’s never been specifically asked about Trader Joe’s but knows it’s a topic on local social media.

Doyen said businesses have their own particular criteria for locations. The chamber’s role is to make sure the business environment is healthy and encouraging for businesses, Doyen said.

Both Neiman and Doyen said there is a variety and multiple opportunities for residents in the metro business area and in Sioux Falls and Brandon specificially.

Neiman said as Brandon continues to grow, so will the variety of businesses and specific stores.