The Rising Cost of Having a Place to Call Home

Simply put, South Dakota is facing an affordability crisis. The cost of living has gone up significantly, with housing being a significant part of this crisis.

Affordability is one of the most consistent concerns I hear from South Dakotans as I travel across our state. And while they may be at very different stages of life, two groups in particular are feeling the pressure: first-time homebuyers and seniors living on fixed incomes.

In June 2026, the median home sold in South Dakota for $335,000, while the median listing price was $382,800. Median rent had reached $1,200 a month, up more than 9% from a year earlier.

For a first-time buyer, even a 3% down payment on a $335,000 home would be more than $10,000, before closing costs, insurance, property taxes and the monthly mortgage payment. And that comes at a time when families are already paying more for groceries, utilities, transportation and healthcare.

And the challenge doesn’t end with retirement.

The Social Security Administration estimates the average monthly retirement benefit in January 2026 is about $2,071. The 2026 cost-of-living adjustment was 2.8 percent, but seniors living on a fixed income still have to stretch that money across housing, food, utilities, healthcare, transportation and everything else.

Even for a senior who has paid off their mortgage, housing isn’t free. Property taxes, homeowners insurance, utilities, maintenance and repairs continue to cost money, and those costs continue to rise. For seniors who rent, the pressure can be even greater.

For many South Dakotans, a home represents more than a financial investment. It means stability, independence and a place to build a life.

That’s why housing affordability isn’t simply about building more houses, although increasing the supply of homes is an important part of the solution. We also need to look at the full picture: starter homes, construction costs, property taxes, insurance, financing, rental availability and programs that help seniors remain safely and independently in their homes.

Because when young families can’t afford to buy a home, communities struggle to attract and retain workers. When seniors are forced out of homes they’ve lived in for decades, communities lose neighbors, volunteers and the connections that make our towns and cities strong.

South Dakota’s housing challenge is ultimately about more than houses. It’s about whether a young family can afford to put down roots, whether a working person can live in the community where they work, and whether a senior who has spent a lifetime contributing to that community can afford to remain there.

Everyone deserves the opportunity to have a safe, stable, and affordable place to call home. Our housing policies should reflect that.