Housing Fuels the Economy in South Dakota


Housing is central to American family life and critical to a thriving economy. The state of the housing industry is a good barometer of the broader economy and the condition of the nation's social fabric.

Use the map to see how your state and local area are doing in terms of new home production, housing affordability, remodeling activity, and other benchmarks.

South Dakota

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A pie chart showing 68 percent

68%

Home ownership rate

$167,600

Median home value

$73,236

Median household income

A pie chart showing 21 percent

21%

Pay more than 50% of income in rent

Laws and Regulations Have Profound Effects on Production and Affordability in South DakotaCreate report

Perceptions of Growth in South Dakota

There are both advantages and drawbacks to growth in a community, which can make it a divisive issue among South Dakota residents. Even members of the same community can perceive growth in different ways.

South Dakota residents see the speed of growth differently.

Percent of South Dakota residents saying growth in their community has been...

  • 18%
  • 24%
  • 44%
  • 14%

Too fast

Too slow

About right

Don't know

South Dakota residents see that growth brings many positive improvements.

Percent of South Dakota residents that see the following aspects of growth as positive:

Creates Jobs

  • 56%

Increases diversity

  • 20%

Generates economic growth

  • 46%

Better shopping/services

  • 35%

More cultural activities

  • 19%

Greater variety of opportunities

  • 35%

Better infrastructure

  • 22%

Reduces cost of living

  • 15%

Improves quality of life

  • 30%

Something else

  • 1%









Perceptions of Growth in South Dakota

There are both advantages and drawbacks to growth in a community, which can make it a divisive issue among South Dakota residents. Even members of the same community can perceive growth in different ways.






Growth can produce some growing pains for South Dakota residents.

Percent of South Dakota residents that see the following aspects of growth as negative:

More crime

  • 48%

Heavier traffic

  • 51%

Overcrowding

  • 32%

Environmental impacts

  • 27%

Crowded schools

  • 32%

Increases the cost of living

  • 36%

Reduces open spaces

  • 28%

Increases taxes

  • 33%

Loss of sense of community

  • 20%

Noise pollution

  • 25%

Something else

  • 2%

Housing availability and policy in South Dakota

The ability to find a home in your area is a factor many of us take for granted. Not all have this luxury, and there are specific ways South Dakota residents would like to see the government act to remedy this.

Percent of South Dakota residents saying there is a housing shortage in their community:

  • 29%
  • 9%
  • 50%
  • 12%

Yes

Maybe

No

Don't know

38% total

South Dakota Residents Agree on Housing Policies To Help The Middle Class

Percent of South Dakota residents who agree with each of the following policies:

A pie chart showing 24 percent

24%

Reduce regulatory hurdles to new housing production

A pie chart showing 33 percent

33%

Provide government support of the 30-year fixed-rate mortgage

A pie chart showing 54 percent

54%

Offer meaningful tax incentives that promote homeownership

A pie chart showing 22 percent

22%

Reduce trade barriers to make building materials less expensive

A pie chart showing 22 percent

22%

Limit federal involvement in local land use decisions

A pie chart showing 3 percent

3%

The government should not take any actions to encourage home ownership

41%

say it matters some or matters a lot what a candidate's positions are on housing policies that affect housing prices and availability

Homeownership in South Dakota

Homeownership is a key piece of the American Dream, and one that millions of South Dakota residents want to participate in each year. But for some, there are obstacles in the way to reaping the wonderful benefits associated with homeownership.

Intent to Purchase Housing

12%

of South Dakota residents plan to purchase a home in the next year

Obstacles to Purchasing a Home in South Dakota

Percent of South Dakota residents that say each of the following is an obstacle to purchasing a new home:

Finding a better job

  • 17%

Getting approved for a mortgage loan

  • 27%

Having enough savings to cover the down payment

  • 29%

Finding a home with the features and size that you want

  • 21%

Finding a home at a price you can afford

  • 33%

Being able to sell your current home at the ‘right’ price

  • 18%

Finding more information about the process of purchasing a home

  • 7%

Having to pay down student / other debt first

  • 16%

Homeownership Presents Great Benefits in South Dakota

Percent of South Dakota residents saying each of the following are benefits of homeownership:

A pie chart showing 33 percent

33%

Sense of belonging to the community

A pie chart showing 27 percent

27%

Opportunity to build wealth

A pie chart showing 57 percent

57%

Secure place to raise a family

A pie chart showing 57 percent

57%

Good investment

A pie chart showing 78 percent

78%

It's a place to call my own

A pie chart showing 35 percent

35%

It's a part of the American dream

Remodeling in South Dakota

Millions of South Dakota residents remodel their homes each year, for many different reasons. This brief exploration of those remodeling their homes gives insight into the scale, and the reasons, for trying to improve our homes.

41%

of South Dakota residents say they definitely will, or maybe will, undertake a major remodeling project on their home over the next three years

Among those planning to remodel, South Dakota residents plan to remodel for the following reasons:

To update for modern amenities and design trends

  • 50%

To increase resale value

  • 36%

Generates economic growth

  • 29%

Because I don’t want to leave my neighborhood

  • 17%

To accommodate a parent or other relative

  • 12%

Because it costs less than moving to a different home

  • 19%

Source: National poll conducted in Q4 2017 for NAHB by Morning Consult and growth polling conducted in Q3 2018 for NAHB by Morning Consult

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South Dakota metro areas

Building permits and the median house price are valuable indicators of the strength of the housing market in communities across America. See these in each of the metro areas of South Dakota.

Single-family building permits in 2016Multi-family building permits in 2016Median house price in 2016
Rapid City, SD Metro Area540431$168,100
Sioux City, IA-NE-SD Metro Area391143$113,700
Sioux Falls, SD Metro Area1,4311,653$164,500

The Data Tells a Story

Housing starts, new home sales and other housing benchmarks can be valuable tools in analyzing housing market dynamics and consumer behaviors, and making reliable market projections.

NAHB’s proprietary analysis tools, including the Housing Market Index and the Housing Opportunity Index, are among the industry’s most important market benchmarks.

The State of Housing in South Dakota


$73,236

Median family income

A pie chart showing 68 percent

68%

Home ownership rate

392,650

Number of housing units

A pie chart showing 32 percent

32%

Minority (Hispanic or Non-White) home ownership rate

$160,700

Median value of owner-occupied homes

11,895

South Dakota residents working in residential construction

$160,700

Median value of owner-occupied homes

11,895

South Dakota residents working in residential construction

A pie chart showing 68 percent

68%

of all South Dakota homes are single-family detached

A pie chart showing 3 percent

3%

of all South Dakota homes are single-family attached

A pie chart showing 20 percent

20%

of all South Dakota homes are multifamily

A pie chart showing 9 percent

9%

of all South Dakota homes are other types of housing units

The State of Rental Housing in South Dakota


A pie chart showing 6 percent

6%

Rental vacancy rate in South Dakota

$722

Median gross rent in South Dakota

A pie chart showing 59 percent

59%

Gross rent is less than 30% of household income

A pie chart showing 20 percent

20%

Gross rent is 30% to 50% of household income

A pie chart showing 21 percent

21%

Gross rent is 50%+ of household income

A pie chart showing 6 percent

6%

Rental vacancy rate in South Dakota

$722

Median gross rent in South Dakota

A pie chart showing 59 percent

59%

Gross rent is less than 30% of household income

A pie chart showing 20 percent

20%

Gross rent is 30% to 50% of household income

A pie chart showing 21 percent

21%

Gross rent is 50%+ of household income

Source: U.S. Census Bureau’s 2016 American Community Survey

Many Low- and Moderate-Income South Dakota Households Are Spending Too Much of Their Income on Housing Create report



How affordable is housing in South Dakota?



41%

More than 41% of renter households in South Dakota are housing cost burdened, meaning they spend more than 30% of income for housing.

$167,600

The median value of owner-occupied homes in South Dakota is $167,600.

42,015

Roughly 42,015 of renter households in South Dakota spend more than 30% of their income for housing.

$167,600

The median value of owner-occupied homes in South Dakota is $167,600.

42,015

Roughly 42,015 of renter households in South Dakota spend more than 30% of their income for housing.

Housing Opportunity Index – South Dakota Metro Areas

The Housing Opportunity Index shows what percentage of homes sold in a given market would have been affordable to a household earning the local median income.

Share of Homes Affordable for Median Income
Rapid City, SD Metro Area43%
Sioux City, IA-NE-SD Metro Area39%
Sioux Falls, SD Metro Area42%

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