A Look inside the Sioux Falls and South Dakota Housing Markets
To say that the housing market has been volatile over the past couple of years would be a major understatement.
The demand to build more and more houses to combat record low inventories coupled with soaring home prices have combined to make it a dream come true for sellers and a nightmare for buyers.
Dramatic new numbers on the housing markets in Sioux Falls and South Dakota show how we're dealing with inventory and prices here.
According to InspectionSupport.com, Sioux Falls is among the top cities in America trying to keep up with the increased demand in the housing market.
South Dakota's largest city is fifth among small metro areas with the most new homes built per 1,000 existing homes at nearly 36.
CITIES BUILDING THE MOST HOMES (New homes per 1,000 existing homes)
- The Villages, Florida (63.5)
- Greeley, Colorado (49.7)
- St. George, Utah (48.7)
- Punta Gorda, Florida (45.6)
- Sioux Falls, South Dakota (35.9)
- Coeur d'Alene, Idaho (33.3)
- Missoula, Montana (32.9)
- Hilton Head Island-Bluffton, South Carolina (32.6)
- Clarksville, Tennessee-Kentucky (32.2)
- Burlington, North Carolina (32.0)
Overall, Sioux Falls is 15th among metro areas of all sizes in the United States with 3,928 new homes in 2021, which is a whopping 88 percent increase over the number of new homes in 2019 (2,119).
The current median home price in the city is now $300,242.
Speaking of home prices, South Dakota's median is $288,729, which is an increase of 18.3 percent in the past year and the 20th highest in the nation, but when you compare those numbers to data from two decades ago, the results are staggering.
VisualCapitalist.com, using data from the Federal Housing Finance Agency’s House Price Index home prices in the Mount Rushmore State are up 56.7 percent from just five years ago and an incredible 326.8 percent since the first quarter of 1991.
That's the tenth biggest jump in America.
The median home sales price in the U.S. jumped by nearly $100,000 from the first quarter of 2020 to the first quarter of 2022 amid low-interest rates and a stronger-than-expected pandemic economy.
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