SD Holds onto Nation's 3rd Lowest Housing Cost Burden; Disparities Remain
South Dakotans enjoyed the nation's third-lowest housing cost burden in 2017, dropping one place from 2016, 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 22.8%, while Californians experienced the highest rate at 42.1%. South Dakota’s neighboring states also had relatively low housing cost burdens:
In 2017, 23.1% of South Dakotans were burdened by housing costs, meaning they paid at least 30% of their income for housing. Housing cost burden rates varied across the state’s metropolitan areas in 2017. In the Sioux Falls metro area (Minnehaha, Lincoln, McCook, and Turner Counties), the housing cost burden rate was 22.9%. By contrast, the housing cost burden rate in the Rapid City metro area (Pennington, Meade and Custer Counties) was 29.7%.
The state hit a recent peak for housing cost burden in 2008, at 26.5%. The Rapid City metro area also peaked in 2008, when it reached 34.9%, while the Sioux Falls metro area's recent high came in 2009 at 28.3%.
Nearly 8 out of 10—just over 37,000 total —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 42.8%. South Dakotans earning between $35,000 and $49,000 had a rate of 20.7%, while those earning $50,000-$74,999 landed at 8.8%. Just 1.4% of individuals earning over $75,000 experienced a housing cost burden in 2017.
The number of housing cost burdened renters in South Dakota has decreased since 2016. In 2017 the ratewas 36.9%, as compared to 2016, when 40.8% of renters paid more than 30% of their income toward rent. On the flip side, more than twice as many renters were housing cost burdened than were homeowners in 2017, 36.9% versus 16.7%. Unlike renters, the percentage of homeowners who are housing cost burdened has been slowly declining in recent years—from 20.0% in 2010 to 16.7% in 2017.