SD Posts Nation's 4th Lowest Housing Cost Burden
South Dakotans enjoyed the nation's fourth-lowest housing cost burden in 2015, dropping one place from 2014, according to federal data. However, the state’s low-income and young residents still faced substantial housing cost burdens.
In 2015, 24.5 percent of South Dakotans were burdened by housing costs, meaning they paid at least 30 percent of their income for shelter. That means 80,442 of the state's 328,494 households were burdened by the costs of mortgages or rents, real estate taxes, insurance, utilities, fuels, mobile home costs and fees.
The housing cost burdened rate was 26.2 percent in the Sioux Falls metro area -- Minnehaha, Lincoln, McCook, and Turner counties, and 31.9 percent in the Rapid City metro area -- Pennington, Meade and Custer counties.
North Dakota was the state with the lowest housing cost burden at 22.4 percent, while Californians experienced the highest rate at 43.0 percent. South Dakota’s neighboring states also had relatively low housing cost burdens:
The state hit a recent peak for housing cost burden in 2008, at 26.5 percent. The Rapid City metro area also peaked in 2008, when it reached 34.9 percent, while the Sioux Falls metro area's recent high came in 2009 at 28.3 percent.
Statewide, nearly 10 percent, or 32,607 households, paid more than 50 percent of their income for housing in 2015. That marks a reversal of a three-year decline in those paying more than 50 percent for housing. The rate had been dropping from 10.3 percent in 2010 to 9.2 percent in 2013.
Nearly eight out of ten South Dakota households with incomes below $20,000 are housing cost burdened, a rate that is up 4.5 percent increase since 2014. Individuals with incomes between $20,000 and $34,999 experienced a housing cost burden rate of 42.2 percent. South Dakotans earning between $35,000 and $49,000 had a rate of 19.3 percent, while those earning $50,000-$74,999 landed at 8.8 percent. Just 3.1 percent of individuals earning over $75,000 experienced a housing cost burden in 2015.
Across South Dakota, 42.2 percent of householders age 24 or younger were burdened by housing costs in 2015, while other age groups experienced rates of less than 30 percent.
Over twice as many renters were housing cost burdened than were homeowners in 2015, 40.8 percent versus 17.5 percent.