The real estate market in South Dakota saw prices explode over the past two years, cutting off opportunities for many state residents to obtain the American Dream.
A story from South Dakota Newswatch reports that a series of economic factors has coalesced over the past two years to make it extremely difficult or impossible for many South Dakotans to afford a home. The price of new and existing homes has skyrocketed as wage gains have been offset by inflation.
A surge of relocations to South Dakota during the COVID-19 pandemic has further inflated home prices.
According to the South Dakota Realtors Association, the statewide median home sales price rose by 54% from 2018 to 2022. Meanwhile, median household incomes in South Dakota rose only 17% during that time.
People seeking homes in rural areas of South Dakota face low inventory and an aging slate of available homes.
The inability to obtain home ownership has fueled concerns that more South Dakotans will be trapped in rental properties.
December 16, 2022