South Dakota posted the nation’s fourth lowest rate for housing cost burden in 2015, falling one spot from 2014, according to recent federal data. Across the state, 24.5 percent of all households paid 30 percent or more of their income for housing.
Young and low income residents were the most likely to be housing cost burdened. In 2015, South Dakotans earning less than $20,000 had a housing cost burden rate of 79.3 percent; a 4.5 percent increase from the 2014 rate of 74.8 percent. South Dakotans earning between $20,000 and $34,999 also experienced increasing challenges as the share of households burdened by housing costs rose from 37.7 percent in 2014 to 42.4 percent in 2015. This rate reflects a 4.7 percent increase from this income bracket’s 37.7 percent rate for housing cost burden in 2014.
While heads of household under the age of 24 experienced the highest rates of housing cost burden in 2015, their rate decreased by 8.1 percent from 2014. More South Dakota seniors were housing cost burdened in 2015 with a rate of 28.5 percent—up from 25.7 percent in 2014.
The percentage of South Dakota households spending over 50 percent of their income on housing remained largely the same at 9.9 percent. Just under 15 percent of South Dakotans allocated 30-49 percent of their income toward housing.
Regionally, South Dakota had a lower housing cost burden than Nebraska, Minnesota and Montana. Iowa (24.1 percent) and North Dakota (22.4 percent) posted lower rates of housing cost burdened households, although North Dakota’s rate increased 2.4 percent from 2014. Wyoming tied with South Dakota at 24.5 percent.
In the Rapid City metro area (Pennington, Meade and Custer counties) experienced 28.3 percent of all households were housing cost burdened in 2015, up from 27.5 percent in 2014. Sioux City and Sioux Falls posted housing cost burdened rates of 23.5 percent in 2015, although Sioux Falls increased from 23.0 percent and Sioux City decreased from 24.7 percent.
Renters experienced housing cost burdens at over twice the rate of home owners in South Dakota, at 42.2 percent—a 2.9 percent increase from 2014.