South Dakota is Winning in Affordability and Homebuilding: Can Governor Rhoden Keep the Momentum Going?

"South Dakota's housing market continues to stand out in the heartland. The Realtor.com® State-by-State Housing Report Card gave the Mount Rushmore State a strong B, reflecting solid affordability and steady construction. The report-part of the Let America Build campaign-measures how well states balance home prices with new construction to meet demand. South Dakota's results show a healthy market that's growing sustainably, even as population gains and rising costs begin to test its capacity."

"Hoping to get the same results in the rest of the country, President Donald Trump recently put pressure on homebuilders to increase construction nationwide, given the issues with construction in the country. In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices-likening them to OPEC, which restricts oil output to maintain high prices. "They're my friends ... but now, they can get Financing, and they have to start building Homes. They're sitting on 2 Million empty lots, A RECORD," Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and "get Big Homebuilders going" to "restore the American Dream.""

"South Dakota earned a total score of 67, placing it among the better-performing housing markets nationwide. The state's median listing price was $380,391 in 2024, paired with a median household income of $73,956. On the supply side, South Dakota continues to build at a competitive pace. The state accounted for 0.4% of national housing permits in 2024, nearly matching its 0.4% share of the U.S. population-giving it a permit-to-population ratio of 1.0. The new construction premium-the price difference between new and existing homes-was 11.4%, typical for the region and reflective of the higher costs associated with newer builds."

South Dakota earned a B grade due to solid affordability and steady construction that balance home prices with new supply. The state posted a total score of 67, with a 2024 median listing price of $380,391 and a median household income of $73,956. Housing permits matched the state's population share at 0.4% of national permits, giving a permit-to-population ratio of 1.0. New homes cost about 11.4% more than existing homes. Population gains and rising costs are beginning to test capacity, while federal and industry actions are being urged to boost nationwide construction.

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