Dec 20, 2017

College Towns and Black Hills Cities Have Most Cost Burdened Households in SD

The number of South Dakota households burdened by housing costs (defined as spending more than 30% of annual income on housing) has risen in recent years. Although South Dakota has had a lower proportion of housing cost burdened households than the nation since 1999, the state’s college towns and cities throughout the Black Hills had higher rates when compared to the state average.

In 2016, over 30% of households in South Dakota’s college towns were housing cost burdened. Meanwhile, the state average for households burdened by housing costs was 24.1%. Vermillion—home to the University of South Dakota—had the highest rate of housing cost burdened households at 43.4% in 2016. Brookings and Spearfish—homes to South Dakota State and Black Hills State Universities—had the next highest rates, at 33.4% and 31.4%, respectively.

In 2016, the Black Hills region had slightly more housing cost burdened households at 31.4% when compared to the statewide average of 29.1%. Box Elder was the city with the highest rate of housing cost burdened households in the Black Hills region at 33.7%, followed closely by Hot Springs at 33.6%. Additional housing cost burden rates for the Black Hills can be viewed in the table below:

 City Percent
Lead 27.8 
Belle Fourche 29.0
Sturgis 30.6
Spearfish 31.4
Rapid City 31.5
Hot Springs 33.6
Box Elder 33.7

Cities in the eastern part of the state generally had lower housing cost burden than the state’s college towns and western cities in 2016. Dell Rapids had the lowest percentage of households considered to be burdened by housing costs at 13.7%. Notably, the city of Lead was No. 20 for housing cost burden across the state but had the lowest ranking of West River cities. The table below highlights the South Dakota cities with the lowest housing cost burdened households in 2016:

 Rank City Percent
1  Dell Rapids 13.7
2 Harrisburg 16.8
3 Canton 17.1
4  Brandon 17.3
5 Hartford 17.8
6 North Sioux City 18.6
7 Pierre 19.6
8 Madison 20.0
9 Chamberlain 20.6
10 Redfield  20.7

The state’s metropolitan areas also exhibited large differences in their levels of housing cost burdened. The Sioux City metro area posted the lowest number of cost burdened households at 19.3%  in 2016, down from 23.5 from 2015. Meanwhile, 31.2% of households in the Rapid City metro area were housing cost burdened in 2016—an uptick from 28.5% from 2015. The Sioux Falls metro area remained stagnant at 23.5% for both 2015 and 2016.

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