South Dakota Cost of Living
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If you’re thinking about starting a new chapter in South Dakota, it’s important to get a realistic sense of what your monthly costs will look like. From the rolling prairies to the vibrant communities in cities like Sioux Falls and Rapid City, South Dakota is known for its friendly atmosphere and slower pace of life — but daily expenses can vary more than you might expect.
To determine the cost of living in South Dakota, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in South Dakota spend $52,133 each year on goods and services, on average.
Jump to insightThe median rent in South Dakota is $984, versus the national median rent of $1,639.
Jump to insightResidents in South Dakota spend $256.48 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.98 in South Dakota.
Jump to insightRecent data shows that employees in South Dakota pay $1,663 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in South Dakota
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in South Dakota was $52,133 in 2023. This number reflects what residents spend each year on housing, health care, food, gas, energy and other common expenses.
Here’s a breakdown of the largest spending categories in South Dakota:
| Category | Annual per-capita cost in South Dakota |
|---|---|
| Housing and utilities | $7,839 |
| Health care | $11,511 |
| Food and beverages for off-premises consumption | $3,620 |
| Gasoline and other energy goods | $1,238 |
| All other personal consumption expenditures | $27,925 |
| Total cost | $52,133 |
Housing costs in South Dakota
For most households, rent or mortgage payments are the biggest part of the budget. South Dakota stands out for offering relatively affordable housing compared with much of the country.
According to 2025 data from Apartments.com, the average rent in South Dakota is $984, while the national average rent is $1,639. Your housing costs will depend on the size of your rental and whether you’re in a city or a rural area. The U.S. Census Bureau’s 2023 American Community Survey breaks out average monthly rents in South Dakota as:
- One-bedroom rent: $757
- Two-bedroom rent: $951
- Three-bedroom rent: $1,093
- Four-bedroom rent: $1,269
If you’re looking to buy, the median home price in South Dakota is $333,100, which is less than the national median home price of $446,638.
Property taxes also influence your total housing costs. South Dakota has an effective property tax rate of 0.99%, with a national ranking of No. 17 for highest rates.
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Food costs in South Dakota
Grocery bills are a key part of any household budget. The most recent U.S. Census data shows that the average weekly grocery spend in South Dakota is $256.48, compared with the U.S. average of $270.21.
How much you spend on food in South Dakota will depend on your shopping habits and how often you dine out. Larger cities and popular towns may have pricier restaurants and specialty grocers, while smaller communities often feature lower prices and more local options. Cooking at home and shopping sales can help families manage costs, but eating out — especially in tourist-heavy areas — can quickly add up.
Transportation costs in South Dakota
For drivers, gas prices and insurance rates are important factors. In South Dakota, the average price per gallon of regular gas is $2.98, compared with the U.S. average of $3.13.
The typical auto insurance premium in South Dakota, which includes liability, collision and comprehensive coverage, is $1,020.95, while the U.S. average is $1,258.
Health care costs in South Dakota
Health care is another major expense for many families. The average employee contribution for employer-sponsored health insurance in South Dakota is $1,663 per year. Employers cover the remaining $6,731, making up the $8,394 total premium.
Nationally, employees pay an average of $1,640 toward a total premium of $8,182.
Utility costs in South Dakota
Utility bills are a regular part of monthly expenses. The average monthly electric bill in South Dakota is $126.31, compared with $136.84 for the U.S. as a whole.
If you rely on natural gas, expect to pay $8.71 per thousand cubic feet in South Dakota, while the national average is $12.92.
FAQ
Does South Dakota have a high cost of living?
No, South Dakota does not have a high cost of living compared with the national average. Housing and utility expenses are generally lower there than in most states, and gas prices are slightly less expensive as well.
Is South Dakota a good place to live?
Yes, South Dakota is a good place to live if you’re looking for affordability and accessible housing. The overall cost of living is lower than the national average, which can make it easier for families and individuals to stretch their budgets. South Dakota is also appealing for renters, with a strong rental market and options for those seeking lower rents.
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Is South Dakota good for renters?
Yes, South Dakota is good for renters. Rent is noticeably affordable in the state, and renters also have more choices thanks to plenty of availability.
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:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
