Moving to South Dakota statistics (2025 data)
Despite being the fifth smallest state in terms of population, over 30,000 people chose to relocate to South Dakota in 2023. While this only equated to a net migration of 591 residents, the state’s affordable cost of living and business-friendly tax environment has continued to attract prospective movers. For example, the median home price of $329,000 is over 20% lower than the national median, even in popular urban hubs like Sioux Falls and Rapid City.
Beyond affordability, South Dakota’s business-friendly taxes and policies are also one of the primary motivators for movers. The state has no corporate income, personal income, personal property, business inventory or inheritance tax. Combined with the low cost of living, it’s no wonder South Dakota ranked as the 10th best U.S. state to move to in 2024.
If you’re making the short- or long-distance move to South Dakota, read on to find out how you can make the most of your trek to the Mount Rushmore State.
Approximately 30,055 people moved to South Dakota in 2023, marking a 4% decrease in the number of movers from the year prior (31,300).
Jump to insightDespite its size, South Dakota only has 919,318 residents as of 2023, making it the fifth smallest state in terms of population.
Jump to insightIn 2024, the median rent in South Dakota is about $1,170, and the median home sale price is $329,000. That means the median South Dakota home is 21.7% more affordable than the U.S. median of $420,400.
Jump to insightSouth Dakota’s cost-of-living index is 93.8, making it the 18th most affordable state in the nation.
Jump to insightSouth Dakota ranks as the 10th best U.S. state to move to in 2024.
Jump to insightHow many people move to South Dakota?
In 2023, an estimated 30,055 people moved to South Dakota, while 29,464 moved out. This represents a net gain of 591 residents. South Dakota’s remote nature and sparse population outside of urban centers like Sioux Falls and Rapid City likely prevent it from becoming as popular as neighboring states like Minnesota or Montana.
According to a recent ConsumerAffairs study based on a sample of 143,506 ConsumerAffairs.com users who expressed an interest in moving between January 2023 and March 2024, South Dakota ranked near the middle of the pack as the 26th most desired state to move to.
Top 4 cities that people moved to in South Dakota
Based on weighted factors like cost of living and safety, South Dakota ranks as the 10th best U.S. state to move to in 2024. The lack of income tax combined with generally affordable living has attracted many people and businesses to major cities like Sioux Falls. The state’s unique, breathtaking geography is also appealing to many outdoor enthusiasts.
Of those moving to the Mount Rushmore State, the majority are relocating to the major population centers of Sioux Falls and Rapid City. The state’s Eastern capital, Sioux Falls, attracted the most new residents, adding 13,692 (7.1% growth) between 2020 and 2023. In the West, Rapid City has also been a popular move-in destination, attracting 4,685 new residents (6.3% growth) during the same period.
The top four South Dakota locations people moved to between 2020 and 2023 are as follows:
Why do people move to South Dakota?
People move to South Dakota for a variety of reasons, including business-friendly taxes and policies, outdoor recreation, and more. The state has no corporate income, personal income, personal property, business inventory or inheritance tax, making it one of the most tax-friendly states in the nation.
This business-friendly approach allows South Dakota to offer a variety of job opportunities despite its sparse population. The largest industries in the state are trade, transportation, and utilities, government, and education and health services. Collectively, these industries employ over 54% of nonfarm workers. The fastest-growing industry in the state is mining, logging and construction, growing by 6% between July 2023 and July 2024.
South Dakota housing statistics
With a median rent price of $1,169.89 and a median home sale price of $329,000, South Dakota renters can expect to pay significantly less than the national median, while homeowners can expect to pay at least 21.7% less.
At a rate of 1.17%, South Dakota has the 17th highest property taxes. The tax rate is roughly double that of states like West Virginia, Utah, South Carolina and Nevada.
In 2021, the average property owner in Minnehaha County, where Sioux Falls is located, paid $2,765 in annual property taxes. In general, the average property tax paid in South Dakota varies greatly by county, with residents of Lincoln County paying an average of $3,406 annually in 2021, while those in Ziebach County paid only $510.
Cost-of-living statistics in South Dakota
South Dakota’s cost-of-living index is 93.8, making it less expensive than the national average and the 18th most affordable state. Most food and fuel costs are below average, with the typical gas price equal to the U.S. average of $3.26. This is the case despite the lack of oil and gas production that allows South Dakota to rank as the ninth most green state.
In line with the lower cost of living, South Dakota’s median household income of $71,495 is also 5.1% less than the U.S. median of $75,358. Luckily, the state also has a much lower-than-average unemployment rate at 2%. The average U.S. unemployment rate is 4.2%.
Overall, South Dakota generally strikes a balance between a low cost of living and a slightly below-average median household income, making it a generally affordable relocation destination.
Who lives in South Dakota?
Approximately 919,318 people live in South Dakota as of 2023, making it the fifth smallest state in terms of population. This represents a population increase of 9,449 people compared to 2022.
South Dakota’s population skews slightly male (50.8%) compared to female (49.2%). In 2023, 467,397 South Dakota residents were male, and 451,921 were female.
At 38.2 years old, on average, South Dakota’s population is also slightly younger than the U.S. average (38.9 years). The largest age demographic in the state is those between 25 to 44 years old, accounting for 221,859 residents, or 24.1% of the population.
Most South Dakota residents are white, with this demographic accounting for 84.2% of the population, or 773,858 people. The Mount Rushmore State also has one of the largest Native American populations in the U.S., at 78,356 people, or 8.5% of the population. This is followed by Hispanic and Black residents, who account for 5.1% and 2.6% of the population, respectively.
Tips for moving to South Dakota
Not sure how to start your move to South Dakota? Consider these step-by-step moving tips:
1. Understand the cost of living
While South Dakota’s cost-of-living index is below the national average, housing availability and affordability largely depend on the region. Aberdeen, Sioux Falls and Rapid City are all more expensive but still generally affordable when compared to other cities. Before moving, utilize resources like South Dakota’s Department of Revenue website to plan your budget according to local housing prices, property taxes and utility costs.
2. Consider local job opportunities
With a business-friendly tax environment and a diverse economy, South Dakota is one of the best states for job seekers and entrepreneurs alike. From Sioux Falls to Rapid City, you can find opportunities in anything from agriculture and manufacturing to health care and tourism. Before moving, check local listings on sites like the South Dakota Department of Labor & Regulation for employment opportunities in your field.
3. Prepare for variable weather
Located in the center of the U.S., South Dakota’s climate faces opposite extremes from summer to winter. Winters here are some of the coldest in the country, while summers average around 90 degrees during the daytime. Ensure your new home is equipped to handle these weather challenges, whether through efficient HVAC systems or energy-efficient building materials. Investing in high-quality summer and winter gear, including breathable jackets and waterproof boots, can also be beneficial. Visit the National Weather Service for regular weather updates.
4. Ensure reliable transportation
Being sparsely populated and full of rugged landscapes, the Mount Rushmore State makes owning a personal vehicle essential for travel. Ice and snow are common in the winter, so you should prepare your vehicle with snow tires and stay updated on road conditions through the South Dakota DOT. Luckily, highways are generally well-maintained, and there are no toll roads throughout the state.
5. Be aware of natural hazards
South Dakota’s beautiful landscapes also come with the risk of winter storms, hail, flooding and occasional tornadoes. From the prairies and lakes of the East to the rugged Black Hills of the West, it’s important to familiarize yourself with local hazards before you move. Register for emergency alerts and check resources from the South Dakota Department of Public Safety to stay informed about potential threats.
6. Explore natural wonders
South Dakota has more than just Mount Rushmore, being home to the Black Hills National Forest and Badlands National Park, as well as many more natural marvels. Whether you enjoy hiking, camping, fishing or boating, the state offers countless outdoor activities to enjoy. Visit the South Dakota Game, Fish, & Parks website to learn more about how and where you can explore.
7. Understand mover quotes and tipping
When moving to South Dakota, carefully review and compare moving company quotes. Be sure to account for potential additional fees depending on where you’re relocating to. Tipping movers is customary; a tip of 10% to 20% of the total cost is standard based on the quality of service.
Article Sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
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