Building Costs Per Square Foot in the State of South Dakota, USA

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South Dakota 6475 Receda Street Rapid City SD57703 - 3 Bed and 1 Bath with 2 Attached Garages on Gross Floor Area 1,068 sqft - Built in 2022 - Price $329,900 (1)

Newly Built House in South Dakota 6475 Receda Street Rapid City SD57703 – 3 Bed and 1 Bath with 2 Attached Garages on Gross Floor Area 1,068 sqft – Built in 2022 – Price $329,900 (1)

Residential Construction Market Analysis in the State of South Dakota, USA

Building costs are 6% below the national average in the state of South Dakota, equivalent to the state of Mississippi, and closer to the states of Arkansas, Florida, Maine, Oklahoma, Vermont and West Virginia by a deviation of 1%. The state of South Dakota is located in the Midwest region, in the Great Plains Area. It is distinguished as the “Mountain Rushmore State” since there is the largest sculpture in the world carved into a mountain, to epically represent the faces of four of the most eminent American presidents: Washington, Jefferson, Roosevelt, and Lincoln.

Its capital is Pierre, and Sioux Falls, Rapid City, Aberdeen, Watertown, and Brookings are listed as the main cities. Due to its large number of jobs and high levels of quality of life in the cities mentioned above, South Dakota attracts new residents from every state in the country (and even immigrants from abroad).

This makes the real estate market one of the most attractive for buyers, sellers, and investors. It is never a bad time to buy and sell in South Dakota, but it is important to know something about the situation of the real estate market, to avoid any type of risk that is possible.

If you are thinking of buying or selling in South Dakota, this article will be of great help to you. Here we will show some predictions and statistics about the South Dakota residential construction and real estate market.

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South Dakota Construction Outlook

To understand the construction of South Dakota it is necessary to have a little information about its climate and its population. On the one hand, the climate is characterized by extreme temperatures, persistent winds, low precipitation, and humidity. Actually, the entire state has hot summers and cold winters. Mountainous areas are normally cooler and wetter than the inland plains. There are usually no big rain storms, but there are snow storms, so the houses should be built with the entrance a little higher than the ground level, to avoid being locked up during a snowstorm.

Due to the extreme cold, the houses are usually made of bricks and do not have large windows, to prevent the icy winds from entering. The same goes for buildings, which are usually quite traditional and not very tall, but they also don’t have large windows for this very reason.

In the capital, Pierre, there are practically no buildings higher than 10 floors, and it seems to be like any other small town, where the residential houses surround the city church. In Rapid City, there are some taller buildings, but they are not your typical skyscrapers either.

South Dakota Housing Market Analysis and Forecast

To give you a fairly general overview of the state of real estate in South Dakota, it’s important for you to know the following: Listing prices are soaring in South Dakota in response to strong buyer demand. However, as there is no shortage of homes on the market and demand is expected to begin to decline in the coming months, these prices are expected to stabilize and decline again.

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The sale price of the homes is $279,700, while the real price is around $260,000 on average, which means that the houses are being sold for a higher price than they should really cost. This occurs due to the increase in demand, which may be related to the increase in people who are choosing this state to live in.

Houses usually take an average of 45 days to sell, which is a good national average. There are no properties that spend more than two months in inventory, but new properties are constantly appearing, which means that there is always a good even relationship between supply and demand.

If you are looking for cheap neighborhoods to buy, Mitchell and Brookings are the best in relation to the price of the properties and the quality of life that you can have there. For investors or people looking for a more intense lifestyle, Rapid City may be a better choice.

South Dakota can be a good state to invest in real estate, especially in cities like Sioux Falls and Rapid City, where there is a higher demand for homes. Homes there take less than 30 days to sell and often sell for more than their real value.

South Dakota Average House Price (Median Home Price)

The median home value in South Dakota is $280,000 this May 2022, which is a big increase compared to the median value of $245,000 during the same period but in 2021, or $219,000 during 2020. Even with this increased pricing, it’s still a relatively cheap state to get a good home at a good price.

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Also, if you look in areas further away from the city you will find better prices. For example, in Brookins and Mithcell you can find properties for less than $200,000. In Aberdeen, the average prices are slightly higher ($220,000) but the lifestyle is considered better.

Sioux Falls is a fairly cheap city to live in, with prices up to 15% lower than Rapid City, and the same amenities within the city. It also has enviable landscapes that mix urban life with nature, and are charming wherever you look at them.

Remember that by median home we mean a house with 3 bedrooms, 2 bathrooms, a kitchen, a living room, a garage, and a small garden. Houses with more than 4 bedrooms tend to exceed $300,000 on average in South Dakota.

Still, you can find houses for lower than average values, especially if you’re willing to restore the property, make various fixes and changes, or live in less central neighborhoods. Everything is a matter of time and tranquility for the search, there is no need to rush.

Proposed Residential Building Projects in South Dakota

In Rapid City and Sioux Falls, there are some real estate projects for buildings that are expected to be ready by the end of this year or the beginning of 2023. They are buildings between 10 and 25 stories, with more than 20 apartments prepared to receive families, individuals, families, or to be studio apartments.

In Aberdeen, there are some projects of residential houses, mainly near the school district that is in the north of the city. They are not luxury houses, but they are houses designed for the middle-class population, and to be inhabited by families.

South Dakota 24003 S Ridge Road Rapid City SD57701 - 2 Bed and 2 Baths with 2 Attached Garages on Gross Floor Area 1,196 sqft - Built in 2022 - Price $440,900 (1)

Newly Built House in South Dakota 24003 S Ridge Road Rapid City SD57701 – 2 Bed and 2 Baths with 2 Attached Garages on Gross Floor Area 1,196 sqft – Built in 2022 – Price $440,900 (1)

Building Costs Per Square Foot for Single Family Homes in the State of South Dakota, USA (NATIONAL ESTIMATOR)

Building costs are 6% below the national average in the state of South Dakota, equivalent to the state of Mississippi, and closer to the states of Arkansas, Florida, Maine, Oklahoma, Vermont and West Virginia by a deviation of 1%.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in South Dakota ranges from $324.20 per sqft to $496.98 per sqft, with the average being $382.60 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in South Dakota ranges from $197.03 per sqft to $302.02 per sqft, with the average being $232.52 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in South Dakota ranges from $127.37 per sqft to $193.46 per sqft, with the average being $149.12 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in South Dakota ranges from $92.96 per sqft to $142.55 per sqft, with the average being $109.71 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in South Dakota ranges from $75.45 per sqft to $115.55 per sqft, with the average being $88.97 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in South Dakota ranges from $59.51 per sqft to $91.22 per sqft, with the average being $70.20 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 7 Metropolitan Areas/Cities in South Dakota – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 1,213 municipalities and 487 special districts grouped into 66 counties in the state of South Dakota. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in South Dakota is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in South Dakota:

South Dakota Average -6% (-6% less than X)

  • Pierre 575 -10%
  • Mobridge 576 -9%
  • Rapid City 577 -8%
  • Aberdeen 574 -7%
  • South Dakota Average -6%
  • Mitchell 573 -6%
  • Watertown 572 -4%
  • Sioux Falls 570-571 -1%

The Metropolitan Area List above as well as the Bar Graphs below shows that Pierre is the cheapest city to build a private home in the state of South Dakota, and Sioux Falls is the most expensive city to build a home. Building costs are -10% below the national average in Pierre and -1% below the national average in Sioux Falls.

Cheapest Places To Build in South Dakota:

Pierre is the cheapest place to build at -10% below the national average, followed by Mobridge City at -9% below the national average. The third cheapest place to build a house is Rapid City at -8% below the national average, followed by Aberdeen at -7% below the national average. The fourth cheapest place to build is Mitchell at -6% below the national average, followed by Watertown at -4% below the national average.  The fifth cheapest place to build a home is Sioux Falls at -1% below the national average.

Expensive Places To Build in South Dakota:

If anything between 5% and 10% is considered expensive, then there is no such metropolitan area in South Dakota.

More Expensive Places To Build in South Dakota:

If anything between 10% and 15% is considered more expensive, then there is no such metropolitan area in South Dakota.

Very Expensive Places To Build in South Dakota:

The most expensive places to build a house in South Dakota are those 15% above the national average. There is no such metropolitan area in South Dakota.

South Dakota State Average Costs:

Private home building costs in the state of South Dakota are -6% below the national average. Building cost rates in the metropolitan area of Aberdeen are closer to the South Dakota state average by a deviation of 1%. Residential development costs in Mitchell are equivalent to the state average. Sioux Falls is the most expensive city to build a home in the state. South Dakota is the 4th cheapest state to build a home in the United States.


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