Two years ago, the Sioux City metropolitan area enjoyed the highest increases in real personal income in the nation, according to a new analysis released by the US Bureau of Economic Analysis. Sioux Falls was not far behind. Meanwhile the Rapid City metropolitan area suffered significant declines and was among the lowest in the nation.
For the state as a whole, South Dakota enjoyed one of the highest increases in real personal income in 2013, experiencing a rise of 2.0 percent. The increase ranked fifth highest in the nation. The growth in real incomes was helped by the fact that South Dakota enjoyed the third lowest overall cost of living, as measured by the BEA’s analysis of regional price parities by state. The state’s year-over-year increase in the cost of living was the lowest in the nation at 0.1 percent.
The BEA’s report adjusts personal income based on national and regional cost-of-living and inflation factors. The report concluded that total real personal income in Sioux City rose 4.8 percent in 2013. The boom in Sioux City reflected a dramatic rebound after real personal incomes declined between 2011 and 2012. In 2013, real personal incomes rose 2.8 percent in Sioux Falls and declined in Rapid City by 0.4 percent.
Changes on a per capita basis provide greater insights into the overall increase in prosperity. In Sioux City, the increase in real per capita personal income was also 4.8 percent, while in Sioux Falls it was only 0.3 percent. In the Rapid City metropolitan area, real per capita personal income declined 2.2 percent.
For more information, see the press release from the US Bureau of Economic Analysis. To explore further data on incomes in South Dakota, see our interactive charts and graphs.