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The Rapid City metro area consistently has a higher level of housing cost burden that the state as a whole.
The Rapid City metro area consistently has a higher level of housing cost burden that the state as a whole.
South Dakota Dashboard chart
November 9, 2015

Housing Cost Burden In Rapid City Metro Exceeds Statewide Level

Both the Rapid City metropolitan area and the state of South Dakota as a whole experienced a recent low level of housing cost burden in 2014, according to recently released federal data, although the Rapid City metro area has consistently remained above the statewide level. 

In 2014, 24 percent of South Dakotans and 27.5 percent of residents of the Rapid City metro area -- Pennington, Meade and Custer counties -- were burdened by housing costs. That means they paid at least 30 percent of their income on housing costs. The rate was 23 percent in the Sioux Falls metro area -- Minnehaha, Lincoln, McCook, and Turner counties.

Both the state and the Rapid City metro area hit a recent peak for housing cost burden in 2008, when the state rate was 26.5 percent and the Rapid City metro area rate was 34.9 percent. The Sioux Falls metro area's recent high came in 2009 at 28.3 percent. 

The Rapid City metro area has been several percentage points above the state and Sioux Falls metro area for housing cost burden with the exception of 2012, when Rapid City's rate dipped down to 27.1 percent while Sioux Falls' rate jolted up to 27.3 percent. The state rate that year was 24.7 percent.

Statewide, nearly 10 percent, or 31,961 households, paid more than 50 percent of their income for housing in 2014, but breakdowns by metro area are not available for that metric. That figure marks a reversal of a three-year decline in those paying more than 50 percent for housing. The rate had been dropping from 10.3 percent in 2010 and reached 9.2 percent in 2013.

Those most likely to be burdened by housing costs are the low-income, the young and renters. (See interactive charts with breakdowns for these categories and several others.) 

South Dakotans with incomes below $20,000 hit a recent high rate of 74.8 percent for housing cost burden in 2014. That rate dropped to 37.7 percent for those with incomes between $20,000 and $35,000; to 19.6 percent for those with incomes between $35,000 and $50,000; to 9.3 percent for those with incomes between $50,000 and $75,000 and to 2.3 percent for those with incomes above $75,000. 

More than half of all South Dakota householders age 24 or younger were burdened by housing costs in 2014, while rates for older age groups were about half that or less. 

Twice as many renters were housing cost burdened than were homeowners in 2014, 39.3 percent versus 17.4 percent. 

Nationally, South Dakota was the third least burdened state for housing costs in 2014, behind West Virginia (22.6 percent) and North Dakota (22 percent). Neighboring states Iowa, Wyoming and Nebraska ranked fourth, fifth and sixth. 

The most housing-cost burdened state was California, at 44 percent. The national rate was 34.4 percent.

 

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