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Housing Cost Burden

SD Holds onto Nation's 4th Lowest Housing Cost Burden; Disparities Remain

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. 

North Dakota was the state with the lowest housing cost burden at 22.5 percent, while Californians experienced the highest rate at 42.6 percent. South Dakota’s neighboring states also had relatively low housing cost burdens:

 State National Rank Percent
 North Dakota 22.5
Iowa 3 24.0
South Dakota 4 24.1
Wyoming  7 25.3
Nebraska 8 25.4
 Minnesota 13 26.3
United States N/A 32.4

In 2016, 24.1 percent of South Dakotans were burdened by housing costs, meaning they paid at least 30 percent of their income for housing. That means 77.8 percent of the state's 322,488 households were burdened by the costs of mortgages or rents, real estate taxes, insurance, utilities, fuels, mobile home costs and fees. Housing cost burden rates varied across the state’s metropolitan areas in 2016. In the Sioux Falls metro area (Minnehaha, Lincoln, McCook, and Turner Counties), the housing cost burden rate was 23.5 percent. By contrast, the housing cost burden rate in the Rapid City metro area (Pennington, Meade and Custer Counties) was 31.2 percent.

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 31,930 households, paid more than 50 percent of their income for housing in 2016. Prior to 2015, the rate had been dropping from 10.3 percent in 2010 to 9.2 percent in 2013.

Approximately or nearly 8 out of 10—just over 37,000total —South Dakota households with incomes below $20,000 are housing cost burdened. Individuals with annual household incomes between $20,000 and $34,999 experienced a housing cost burden rate of 43.4 percent. South Dakotans earning between $35,000 and $49,000 had a rate of 20.8 percent, while those earning $50,000-$74,999 landed at 9.8 percent. Just 2.5 percent of individuals earning over $75,000 experienced a housing cost burden in 2016.

Across South Dakota, 44.6 percent of householders age 24 or younger were burdened by housing costs in 2016, while other age groups experienced rates of less than 30 percent.

The number of housing cost burdened renters in South Dakota has been slowly but steadily climbing since 2006, when 38.6 percent of renters paid more than 30 percent of their income toward rent. By 2016, this rate increased to 40.8 percent. On the flip side, more than twice as many renters were housing cost burdened than were homeowners in 2016, 40.8 percent versus 16.7 percent. Unlike renters, the percentage of homeowners who are housing cost burdened has declined in recent years—from 21.5 percent to 16.7 percent in 2016.

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