Suppose real estate is the most significant investment a majority of people make in their lifetime. In that case, it’s best to understand the places in South Dakota with best potential return on investment.
After working in real estate adjacent roles for over a decade, I had the hypothesis that the best place to buy for a return on investment would be up-and-coming cities. Smaller cities where crime might be high now, but people still move to.
To test my hypothesis, we are going to look at places in South Dakota that are growing faster than average, but where home prices are below average, and crime rates are higher than average.
In everyday terms, these might be “deals”. The best deal in South Dakota at the moment according to Saturday Night Science? That would be Belle Fourche.
Table Of Contents: Top Ten | Methodology | Summary | Table
The 10 Best Places To Buy A Home In South Dakota For 2024
The methodology that wen’t into this can be a bit complicated, so we’ll break it down for you in as much detail as we can below.
For more South Dakota reading:
- Best Counties To Live In South Dakota
- Best Places To Raise A Family In South Dakota
- Best Places To Retire In South Dakota
The 10 Best Cities To Buy A House In South Dakota For 2024
/10
Population: 5,670
Median Home Price: $281,636
Population Change: 2.0%
Home Price Change: -10.0%
More on Belle Fourche: Data | Crime | Cost Of Living | Real Estate
/10
Population: 5,922
Median Home Price: $354,610
Population Change: 7.0%
Home Price Change: 0.4%
More on Tea: Data | Crime | Cost Of Living | Real Estate
/10
Population: 7,157
Median Home Price: $340,010
Population Change: 7.7%
Home Price Change: 1.7%
More on Harrisburg: Data | Cost Of Living | Real Estate
/10
Population: 7,121
Median Home Price: $338,025
Population Change: 0.5%
Home Price Change: -1.6%
More on Sturgis: Data | Crime | Cost Of Living | Real Estate
/10
Population: 6,271
Median Home Price: $235,746
Population Change: -1.8%
Home Price Change: 11.1%
More on Madison: Data | Crime | Cost Of Living | Real Estate
/10
Population: 11,905
Median Home Price: $330,877
Population Change: 3.3%
Home Price Change: 1.8%
More on Box Elder: Data | Crime | Cost Of Living | Real Estate
/10
Population: 10,919
Median Home Price: $362,304
Population Change: 1.6%
Home Price Change: 1.2%
More on Brandon: Data | Crime | Cost Of Living | Real Estate
/10
Population: 11,667
Median Home Price: $229,091
Population Change: 1.4%
Home Price Change: 4.3%
More on Vermillion: Data | Crime | Cost Of Living | Real Estate
/10
Population: 12,268
Median Home Price: $418,769
Population Change: 2.0%
Home Price Change: 1.6%
More on Spearfish: Data | Crime | Cost Of Living | Real Estate
/10
Population: 14,179
Median Home Price: $176,399
Population Change: 0.8%
Home Price Change: -6.3%
More on Huron: Data | Crime | Cost Of Living | Real Estate
Methodology: How do you determine the best places to buy a home in South Dakota for 2024?
We were in real estate for almost five years and have worked on this site for another 9. Suffice it to say we’ve put a lot of thought into finding an excellent place to buy a home.
So all that thinking has come to this moment where we get to spell out how we’d approach finding an up-and-coming place to live in South Dakota. Put differently, the analysis will try to find places in South Dakota with undervalued homes relative to pent-up demand using Saturday Night Science.
To do that, we looked at the most recent American Community Survey Census data for 2018-2022 and compared it to the previous vintage. Specifically, we used the following criteria:
- Y-o-Y Change In Population (People want to live here)
- Y-o-Y Change In Median Home Prices (People are willing to pay for it)
- Home Prices Relative To The State Average (It’s still kinda cheap)
We want places that are growing, have seen home prices increase in recent years, and are still “cheap” for South Dakota with the following caveats:
- Home prices had to be within 20% of the state average (Much lower than that, and you get to some of the more dangerous places)
- Home prices increased in the last year, and
- Above 5,000 people (Bigger cities have more data points)
So of the 0 cities and towns in South Dakota, only 18 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 18 for the above criteria, with 1 being the best. We averaged the rankings to create a “best place to buy” index, with the place having the lowest index being the best.
Turns out that Belle Fourche is the best potential gem in the not-so-rough in the Mount Rushmore State.
Summary: The Best Places To Purchase A House In South Dakota for 2024
There’s our analysis of the best places to buy a house in South Dakota. And, to be clear, we aren’t necessarily saying these places are the best places to live, just that it looks like they might be in a couple of years based on the data.
In fact, every place in the following table meets our criteria, so even though it may not look super long, remember we started off with all 0 places in the state.
The best cities to buy a house in South Dakota are Belle Fourche, Tea, Harrisburg, Sturgis, Madison, Box Elder, Brandon, Vermillion, Spearfish, and Huron.
So if we’d could rent or buy in these cities, we’d definitely buy.
For more South Dakota reading, check out:
Best Places To Buy A Home In South Dakota
| Rank | City | Population | Median Home Price | Population Change | Home Price Increase |
|---|---|---|---|---|---|
| 1 | Belle Fourche | 5,670 | $281,636 | 2.0% | -10.0% |
| 2 | Tea | 5,922 | $354,610 | 7.0% | 0.4% |
| 3 | Harrisburg | 7,157 | $340,010 | 7.7% | 1.7% |
| 4 | Sturgis | 7,121 | $338,025 | 0.5% | -1.6% |
| 5 | Madison | 6,271 | $235,746 | -1.8% | 11.1% |
| 6 | Box Elder | 11,905 | $330,877 | 3.3% | 1.8% |
| 7 | Brandon | 10,919 | $362,304 | 1.6% | 1.2% |
| 8 | Vermillion | 11,667 | $229,091 | 1.4% | 4.3% |
| 9 | Spearfish | 12,268 | $418,769 | 2.0% | 1.6% |
| 10 | Huron | 14,179 | $176,399 | 0.8% | -6.3% |
| 11 | Pierre | 14,105 | $272,719 | -0.1% | -1.3% |
| 12 | Yankton | 15,421 | $247,438 | 0.6% | -1.6% |
| 13 | Mitchell | 15,656 | $234,575 | -0.1% | 4.4% |
| 14 | Watertown | 22,718 | $272,742 | 0.6% | 0.3% |
| 15 | Brookings | 23,530 | $281,909 | 0.4% | 2.6% |
| 16 | Aberdeen | 28,388 | $216,009 | -0.4% | 0.8% |
| 17 | Rapid City | 75,632 | $318,953 | 2.3% | 2.7% |
| 18 | Sioux Falls | 193,401 | $311,972 | 2.2% | 2.2% |