UNDATED – A new national study shows why South Dakota’s housing market is tightening – and it’s not just a local problem.
Harvard and University of Pennsylvania researchers published a study through the National Bureau of Economic Research showing that if the U.S. had kept building homes at 1980s and 1990s rates, we’d have 15 million more homes today. The study shows home construction has dropped sharply nationwide over 50 years.
Here in South Dakota, the housing crunch is hitting hard. The Dakota Institute says the typical home price rose 80 percent in eight years, reaching $384,000 in 2024.
State housing officials warn that affordable housing is especially scarce for low and moderate-income families. Funding requests far+ outpace available money.
The state’s population grew by over 4 percent since 2020, adding pressure to the market. Experts say that unless more homes are built, South Dakota risks pricing out the workers and families it needs to grow.
