HURDLES TO HOMEOWNERSHIP: Why buying a home is out of reach for many South Dakota residents

A number of economic factors have come together in the last two years to make it extremely difficult or even impossible for many people in South Dakota to achieve the American Dream of homeownership.

The price of new and existing homes has skyrocketed in recent years at a time when modest wage increases for South Dakotans have been largely offset by high inflation. That economic imbalance has been exacerbated by the declining availability of affordable housing, especially for first-time homebuyers.

Meanwhile, a surge of relocations to South Dakota during the COVID-19 pandemic has further inflated home prices, driving many state residents out of the market, especially in the urban centers of Sioux Falls and Rapid. City.

On a more basic level, the road to homeownership in South Dakota has become much more difficult because rising incomes have not kept up with the cost of housing, a disparity that has grown during the pandemic.

According to the South Dakota Association of Realtors, the statewide median home sales price increased 54% from 2018 to 2022. Meanwhile, median household income in South Dakota increased just 17% during that time , even with a healthy 10.4% increase in household income from 2020 to 2021, according to the US Census.

“I would say the American Dream of homeownership is hurt in South Dakota right now,” said Ron Sassy, ​​a Black Hills real estate agent and former Rapid City Council member. “He’s not dead, but it’s hard out there…