South Dakota Housing Market Vitality

Market Rank

twenty-four

South Dakota metro area house prices are forecasted to underperform the national market over the next twelve months. Currently, the market is underperforming the overall U.S. market. Compared to 12-months ago, South Dakota’s housing market has strengthened. Current local economic conditions support an estimated 14.4% increase in house prices over the next twelve months. Based on the housing market vitality of the three metro housing markets which comprise it, South Dakota’s housing market ranks twenty-fourth amongst all states and D.C. The three-month outlook is negative.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

South Dakota Metro Housing Markets

South Dakota is comprised of three metro housing markets that account for nearly 47% of the state’s population. The Mount Rushmore State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREASITUATIONOUTLOOKUS METRO RANK (/402)
Rapid City, SD Tracking Negative173
Sioux City, IA-NE-SD Underperforming Negative244
Sioux Falls, SD Underperforming Negative174

Industry Specialization

South Dakota’s state economy is specialized in Trade Trans Util, Construction, and Leisure Hosp. Pro Bus svcs, Manufacturing, and Information industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a lower incidence of poverty amongst South Dakota residents and they have greater purchasing power. There are more high school graduates and a smaller proportion of the population is college educated. South Dakota’s population is comparatively less diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Updated September 08, 2021 with data through July 2021