Recent lending data from Home Mortgage Disclosure Act (HDMA) data available through the Minneapolis Federal Reserve’s Reserve’s Center for Indian Country Development shows that American Indian home buyers were more likely to be approved for manufactured home mortgages than site-built mortgages.* The data show that mortgage origination rates for members of the Cheyenne River Sioux, Oglala Sioux, Rosebud Sioux, Standing Rock Sioux and Yankton Sioux Tribes were 55.7% for manufactured homes, compared to 51.2% for site-built homes.
The Standing Rock Sioux Tribe had the most mortgage approvals for both manufactured and site built homes from 2012-2016, with 66.7% originations for manufactured homes and 56.5% for site built homes. The Cheyenne River Sioux Tribe had the highest denial rates for both manufactured and site built homes, at 46.2% and 56.5%, respectively. Rates of mortgage application denials, loan originations, and those not accepted for both manufactured and on site homes can be viewed in the charts below:
Originally enacted by Congress in 1975, the rule-writing authority of the HDMA’s Regulation C’s was transferred to the Consumer Financial Protection Bureau (CFPB) in 2011. Home-loan application data are collected under Regulation C in order to help the public determine whether or not financial institutions are serving the housing needs of their communities or if discriminatory housing patterns exist. While HDMA data are a comprehensive source of publicly available mortgage information, not all lenders are required to report their data. Additionally, HDMA data is collected at the census tract level, which provides challenges for tribal areas as census tracts and reservation boundaries do not align.
For more information on HDMA data, its uses, and limitations, visit the Minneapolis Federal Reserve’s website.
*Data are not available for the Lower Brule Sioux Tribe, Crow Creek Sioux Tribe, Sisseton Wahpeton Oyate or Flandreau Santee Sioux Tribe.
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:
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:
|6||North Sioux City||18.6|
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.
Individuals earning a minimum wage in South Dakota must work 51 hours per week in order to afford a one-bedroom apartment in South Dakota, according to a recent report by the National Low Income Housing Coalition. In order to afford a two-bedroom rental home, South Dakotans would need to make $14.12 per hour, or work 65 hours per week at the minimum wage.
Douglas County is the most expensive county to live in, with an hourly wage of $16.58 per hour required to afford two-bedroom rental housing as defined by 2017 Fiscal Year Fair Market Rent. Pennington, Custer, Lincoln, Turner, Minnehaha and McCook Counties all required earners to make over $15 per hour to afford a two-bedroom apartment.
Regionally, South Dakota required the lowest wage to afford a two-bedroom housing unit at $14.12 per hour, ranking the state 49th nationally. Iowa, Nebraska and Montana also required relatively low wages to afford two-bedroom housing hovering around $14/hour. North Dakota, Wyoming and Minnesota required higher wages to afford housing. The weekly hours required to afford two-bedroom housing at minimum wage as well as the wage required to afford housing at forty hours per week can be viewed below:
|State||Wage Required to Afford Two-Bedroom Housing||Weekly Hours Required to Afford Two-Bedroom Housing at Minimum Wage||National Ranking|
While housing in the Sioux Falls metropolitan area has previously been more affordable than housing in the Rapid City metropolitan area, fewer disparities between the two counties were seen this year. In 2016, the fair market rent for a two-bedroom apartment in Rapid City was $825 per month while it was $734 in Sioux Falls. In 2017, fair market rent in Rapid City for a two-bedroom apartment was $823 per month while Sioux Falls rose to $811 per month. A comparison of housing costs in Sioux Falls and Rapid City can be viewed below:
To learn more about housing affordability in South Dakota and across the nation, view the full Out of Reach 2017 report by the National Low Income Housing Coalition.
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.
The third installment of the #SDbythenumbers series is ready for your enjoyment! Impress your friends and coworkers after learning smart-sounding data from our sleek infographics. Further your education by scrolling to the end of the page and clicking the text links to dive deeper into the data at hand. This week’s installment focuses on South Dakota housing.
South Dakota counties in the Black Hills region and those home to the state's two largest public universities, in eastern South Dakota, post among the highest rates of housing cost burden among 66 counties, according to federal data.
At 37.3 percent, Clay County, home to the University of South Dakota in Vermillion, ranked highest for the proportion of households that were cost-burdened between 2010 and 2014. Brookings County, home to South Dakota State University in Brookings, ranked third highest at 30.9 percent.
A household is considered cost-burdened if it pays more than a 30 percent of its income for mortgages or rents, real estate taxes, insurance, utilities, fuels, mobile home costs and fees.
Tripp County, in south central South Dakota, ranks second highest (31.4 percent) for the proportion of residents who are housing-cost burdened and is not home to a university or in the Black Hills region.
The Black Hills counties of Lawrence (30.4 percent), Pennington (30.2 percent) and Butte (30.2 percent) ranked fourth-, fifth- and sixth-highest for housing cost burden, while the counties of Meade (28.9 percent), Custer (27.2 percent) and Fall River (27 percent) ranked tenth, twelfth and thirteenth highest.
Oglala Lakota County is included in the Black Hills region by the Black Hills Knowledge Network and lies entirely within the Pine Ridge Indian Reservation. Like the state's nine reservations, the county posted a housing cost burden rate below 30 percent. Oglala Lakota County ranks 19th statewide with a rate of 24.9 percent, the lowest rate in the Black Hills region.
Here's a look at housing-cost burden rates on the state's American Indian reservations, for 2010-2014.
At the low end of the spectrum, rural counties posted the lowest proportion of housing-cost burdened residents. Here's a look at the 10 counties with the lowest rates from 2010-2014.
Nationally, South Dakota had the third-lowest rate of housing cost burden in 2014 (24 percent), behind West Virginia (22.6) and North Dakota (22 percent).
South Dakota's homeownership rate has held steady at about 68 percent in recent years, even through the Great Recession in 2008-2009, according to federal data. At the same time, the national homeownership rate has been steadily slipping, a trend that predates the recession.
Nationally, 67.3 percent of United States residents lived in homes they owned in 2006 compared to 63.1 percent in 2014, the most recent year for which federal data is available. For South Dakota, the homeownership rate was 69.2 percent in 2006 and 68.2 percent in 2014. That places the state 12th nationally, behind No. 1 West Virginia (72.2 percent) and No. 50 New York (53 percent).
With an average homeownership rate above 71 percent from 2010-2014, white South Dakotans are nearly twice as likely to own their homes as are Native Americans and Asians, with homeownership rates under 38 percent. During that same time period, blacks had the state's lowest homeownership rate, at 22.4 percent, while Hispanics had a 41.5 percent homeownership rate.
Low income and young South Dakotans were less likley to own their homes than their higher income and older counterparts. At the same time, homeownership among all income groups is down since 2000 while the statewide homeownership rate has remained exactly the same in 2000 and 2014 -- 68.2 percent.
One possible explanation is that homeownership among those with incomes above $75,000 was down just a tick while the number of South Dakota households in that income range went from 37,424 in 2000 to 94,083 in 2014. At the same time, the number in the below $20,000 category has dropped from 75,652 to 57,875. Here's a look at South Dakota homeownership by income level.
|INCOME LEVEL||2000 RATE||2014 RATE|
|$20,000 to $34,999||62.0%||53.3%|
|$35,000 to $49,999||75.4%||66.2%|
|$50,000 to $74,999||85.5%||74.6%|
|$75,000 or more||90.8%||90%|
The downward trend is not as consistent when homeownership rates are evaluated by age groups. The rate for some age groups ticked up while it ticked down for others.
|AGE||2000 RATE||2014 RATE|
|24 & younger||17.8%||14%|
|85 & older||53.7%||50%|
When evaluating by household type, married couples with no children were the most likely to own their homes in 2014 while single mothers were the least likely. Here are South Dakota's homeownership rates by household type in 2014:
More South Dakotans over age 65 have been owning their homes in a trend that appears to not be linked to the Great Recession of 2008-2009, according to recenlty updated federal data.
Between 2010 and 2011, homeownership among senior citizens jumped from 72.6 percent to 75.1 percent, and the rate has ticked up each year since to reach 76 percent in 2014 (the most recent year for which data is available). The second-highest rate in recent years was in 2009 at 73.7 percent.
South Dakota's overall homeownership rate was 68.2 percent, in line with a stable rate that has fluctuated little in recent years.
Reaching 76 percent homeownership puts South Dakota's senior citizens on par with middle-aged adults, where senior citizens have consistently lagged behind South Dakotans ages 35-64 for at least the past decade. Middle-aged South Dakotans hit a recent high homeownership rate of 78.7 percent in 2006.
South Dakotans ages 15-34 posted a homeownership rate of 41 percent in 2014, on par with post-recession rates. However, that age group dropped in 2009 from pre-recession rates of more than 43 percent.
South Dakota ranks 12th nationally and third regionally for homeownership, behind No. 1 West Virginia at 72.2 percent and ahead of No. 50 New York at 53 percent. Here's a look at rates for South Dakota and surrounding states.
Homeownership rates in the Sioux Falls and Rapid City metropolitan areas are nearly equal and barely below the statewide rate, at 67.4 percent in the Rapid City metro area and 67.2 percent in the Sioux Falls metro area.
High-income South Dakotans are more than twice as likely to own their homes versus low-income South Dakotans. Households with incomes of more than $75,000 have consistently had homeownership rates around 90 percent, while the rate for those with incomes below $20,000 has fluctuated between 35 percent and 40 percent since 2006. In 2000, those with incomes below $20,000 had a homeownership rate of 45 percent.
Homeownership rates for South Dakotans with incomes between $20,000 and $35,000 have hovered just above 50 percent in recent years, with a rate of 53.3 percent in 2014. Before the recession, that income group had homeownership rates of around 60 percent. Post-recession homeownership rates also are down for South Dakotans with incomes between $35,000 and $50,000 and incomes between $50,000 and $75,000.
For those with incomes between $35,000 and $50,000, at 66.2 percent in 2014, is up from around 61 percent the two previous years but down from pre-recession rates of about 70 percent. At the same time, those with incomes of between $50,000 and $75,000 saw their homeownership rate dip to 74.6 percent after posting rates of about 78 percent for the three previous years and over 80 percent for all but one of the five years before that.
When looking at household types, homeownership varies as well. Married couples in South Dakota are far more likely to own their homes than are single parents. Here's a look at 2014 homeownership rates by household type.
South Dakotans enjoyed the nation's third-lowest housing cost burden in 2014, although thousands of the state's residents were burdened by housing costs, according to recently updated federal data. The low-income and the young recorded much higher rates of housing cost burden.
In 2014, 24 percent of South Dakotans were burdened by housing costs, meaning they paid at least 30 percent of their income on housing costs. That means 77,628 of the state's 323,994 households were burdened by the costs of mortgages or rents, real estate taxes, insurance, utilities, fuels, mobile home costs and fees.
The rate was 23 percent in the Sioux Falls metro area -- Minnehaha, Lincoln, McCook, and Turner counties, and 27.5 percent in the Rapid City metro area -- Pennington, Meade and Custer counties.
That compares to the lowest burdened state, North Dakota, at 22 percent, and the highest burden in California at 44 percent. Three other neighboring states ranked 4th, 5th and 6th -- Iowa (24.5 percent), Wyoming (25.2 percent) and Nebraska (26.4 percent). The national rate was 34.4 percent.
The state hit a recent peak for housing cost burden in 2008, at 26.5 percent . The Rapid City metro area also was in 2008, when it hit 34.9 percent, while the Sioux Falls metro area's recent high came in 2009 at 28.3 percent.
Statewide, nearly 10 percent, or 31,961 households, paid more than 50 percent of their income for housing in 2014. 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 and reached 9.2 percent in 2013.
South Dakotans with incomes below $20,000 hit a recent high rate of 74.8 percent for housing cost burden in 2014. That rate dropped to 37.7 percent for those with incomes between $20,000 and $35,000; to 19.6 percent for those with incomes between $35,000 and $50,000; to 9.3 percent for those with incomes between $50,000 and $75,000 and to 2.3 percent for those with incomes above $75,000.
More than half of all South Dakota householders age 24 or younger were burdened by housing costs in 2014, while rates for older age groups were about half that or less.
Twice as many renters were housing cost burdened than were homeowners in 2014, 39.3 percent versus 17.4 percent.
South Dakota ranks 48th nationally for the wage needed to afford the average fair market rent for a two-bedroom apartment, according to a report released by the National Low Income Housing Coalition.
The report calculates that a worker would need to earn $13.41 per hour to afford a two-bedroom apartment at $698. That wage is $4.91 more than the state's minimum wage of $8.50. South Dakota compares to No. 52 Puerto Rico on the low end at a needed wage of $10.53 and No. 1 Hawaii with a needed wage of $31.61.
The report notes that the average renter in South Dakota earns $10.67 per hour, making a rent of $555 affordable. A minimum wage worker would need to work 49 hours per week to afford the average one-bedroom apartment at $540 per month and 63 hours to afford a two-bedroom unit.
The report finds Douglas County the most expensive county for renters, with $16.04 per hour needed to afford a two-bedroom apartment at fair market value. The remaining top five counties are Pennington ($15.27), Buffalo ($14.83), Fall River ($14.42) and Custer ($14.23).
In South Dakota, 32 percent, or 103,264, of households are rented.