South Dakota is home to national treasures like Mount Rushmore and Crazy Horse, along with many national parks dedicated to keeping nature with nature.
What is surprising is that areas of South Dakota have a booming housing market, and the momentum continues to rise as the sellers’ market maintains its hold over available properties.
What to Expect in the South Dakota Housing Market
As per the Sperling’s best places to live in South Dakota, it is important to note the low unemployment rate reported by the state. The low unemployment rate is a reliable indicator of the strength of the housing market.
Currently, South Dakota’s majority of housing inventory is considered to be more affordable than most of the rest of the country. The largest portion of available homes is in the range of approximately $115k to $230k according to Neighborhood Scout.
On top of that, South Dakota appreciation rates are expected to continue to rise, as they have steadily done since 2000.
Home buyers can expect to find affordable homes within the South Dakota housing market, but some are unsure as to how long it will last.
Limitations of the South Dakota Housing Market
In one report by the U.S. News and World Report, there is data that indicates the housing prices are unsustainable. At least that’s what Ben Ayers, Nationwide Senior Economist, says about the South Dakota housing market.
This stands in stark difference to other predictions because there is a lack of supply in housing inventory, which typically indicates a strong housing market. The only reason Nationwide carries weight in their opinion is because they have traditionally examined supply and demand, making judgment calls based on unemployment rates, households, and job availability in the area.
As of yet, all of those remain steady, which is why real estate agents in places like Sioux Falls believe that prices may stabilize, but the housing market is expected to continue to rise, although it may slow down.
A Variety of Places to Live in South Dakota
All throughout South Dakota, you’ll find places to live that are highly affordable compared to the rest of the country. Naturally, some are more expensive than others, but the South Dakota housing market continues to thrive.
Brandon is the most expensive place to live in South Dakota and is a suburb of Sioux Falls. Even though it is the most expensive, the housing costs are actually 10% less than the national average.
What makes Brandon the most expensive are other costs of living like groceries and healthcare, both around 5-10% above the national average.
As it is located near Sioux Falls, there is plenty to do in and around the area in terms of being active and outdoors, as well as having accessibility to more big city amenities.
Sioux Falls, SD
Sioux Falls is the largest city in South Dakota and is growing at a quick pace. Despite its growth, the South Dakota housing market has some great finds here.
In fact, housing costs are almost 20% lower than the national average while utilities are almost 25% less, too. What can make this city more expensive is the higher cost of living expenses like groceries, healthcare, and transportation. They are all at or above the national average by as much as 10% higher.
The growth of the area does push the economy forward, which means certain amenities are becoming standard for residents in Sioux Falls and surrounding areas.
With housing at less than 50% of the national average, Huron is a very affordable place to live. You’ll find that other costs of living are also significantly less than the national average.
Utilities and transportation are almost 10% less than the national average, too.
Located in Beadle County as the county seat, Huron has some history, too. The first settlement arrived in 1880 and was named after the Huron Indians that lived in the area. Huron is also the 9th largest city in South Dakota.
Housing Statistics in South Dakota
There are significant statistics to notice while considering South Dakota as a viable place to live. As mentioned earlier, the unemployment rate is low at 2.8% which is lower than the national average. With a positive job growth over the past year, the economy remains strong.
Cost of living in South Dakota is also markedly less than the national average, sitting at a full 4% lower than what you can find across the country.
Home values are on the rise with a current median home cost of $163k, and median listing price of around $230k. Trends over the past ten years indicate that the value for homes in South Dakota has increased by almost 25%.
According to Zillow, the median list price per square foot is currently sitting at $153 USD, with an expected increase of about 2% by 2019.