Thinking about moving to South Dakota? The state has a $75.2 billion economy with growing jobs in healthcare, construction, and manufacturing sectors. Plus, with one of the lowest costs of living and housing, it ranks as the 8th best state to live in 2025.
But the move comes with trade-offs. The state is prone to several natural disasters, including tornadoes, blizzards, wildfires, and floods. Still, many are choosing cities like Sioux Falls, Rapid City, and Aberdeen for lower living costs and a better quality of life.
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AT A GLANCE:
- South Dakota has a $75.2 billion economy with growing jobs in healthcare, construction, and manufacturing sectors.
- With its housing costs 13.20% lower than the national average, South Dakota ranks as the 6th most affordable state for housing.
- The cost of living in South Dakota is 8% lower than the national average, which is one of the lowest in the country.
- The state does not levy any individual or corporate income tax. Plus, the overall tax burden in South Dakota is one of the lowest in the country.
- Expect to pay between $2,200 and $6,400 for your move, depending on how far you’re moving and the size of your belongings.
- South Dakota has a humid continental climate. Summers are hot and humid, while the winters are typically cold and snowy.
3 Reasons to Move to South Dakota
Why settle for just sunny beaches when you can also enjoy the high life? Browse through over thousands of mansions, high-rise penthouses, and spacious luxury homes for sale in South Dakota, and enjoy the finest the state has to offer.
1. Affordable Housing in South Dakota
South Dakota ranks as the 6th-most affordable state for housing. The state has a median home price of $315K, which is 13.20% lower than the national average. Plus, rent in South Dakota is also 41% less expensive.
Recent trends show that 18.9% of listed homes in South Dakota have seen a price drop, and properties take an average of 83 days to sell, compared to the US average of 56 days. This gives buyers more negotiating power to secure a better deal.
2. Jobs in South Dakota
South Dakota ranks as the #2 best state for employment. South Dakota’s robust economy has 23,000 new job openings in 2025, and aims to add over 41,000 more by the end of 2030. Here’s a breakdown of growing job sectors in South Dakota:
- Healthcare: The healthcare sector employs over 61,000 workers, which is 16% of all the workers in the state. The sector is projected to add 7,950 new jobs by 2032. Jobs like registered nurses, physician assistants, and physical therapists are in high demand.
- Construction: With over 4,300 establishments, the construction sector in South Dakota contributes $4 billion to the state’s GDP and supports over 30,300 jobs across the state. Jobs like electricians, plumbers, and HVAC technicians are in high demand.
- Manufacturing: With over 1,100 establishments across the state, the manufacturing sector contributes $2.7 billion to the state’s GDP and supports over 45,000 jobs across the state. Jobs like production associates, assemblers, and machine operators are in high demand.
3. Natural Environment
With 13 state parks across the state, South Dakota ranks #5 in terms of natural environment in the country. The state is home to several natural wonders like Badlands National Park and the iconic Black Hills, featuring unique geological formations.
Outdoor enthusiasts can enjoy the 109-mile Mickelson Trail for biking and hiking or try rock climbing at the Needles’ granite spires. Additionally, Black Hills’ Terry Peak Ski Area provides great options for snowboarding and cross-country skiing during winter.
Pros and Cons of Living in South Dakota
Here are the drawbacks and benefits of moving to South Dakota:
| ✅ Pros | ❌ Cons |
|---|---|
| 1. You will have easy access to growing job opportunities in healthcare, construction, and manufacturing sectors. | 1. Due to its location in the Tornado Alley, South Dakota is a high-risk state for tornadoes, blizzards, wildfires, and floods. |
| 2. The cost of living in South Dakota is 8% lower than the national average. Plus, housing also costs significantly less. | 2. With just 11.3 people per square mile (5th lowest), its low population density can sometimes feel isolating. |
| 3. With no state or local income taxes, South Dakota is one of the states with the lowest tax burdens on individuals. | 3. The winters in South Dakota are harsh. With temperatures ranging from -9°F to 26°F, most of the state receives heavy snowfall. |
| 4. With 13 state parks across the state, outdoor opportunities in South Dakota are abundant. | 4. Public transportation outside of major cities is sparse. Owning a car is a necessity here. |
Things to Know Before Moving to South Dakota📌
Here are the things to keep in mind before relocating to South Dakota:
1. Cost of Living in South Dakota
The cost of living in South Dakota is 8% lower than the national average. So, you’ll save on expenses like utilities, food, and transportation, though healthcare can get expensive. The state ranks as the 3rd most affordable in the country for its low cost of living.
The Mount Rushmore State is an appealing option compared to more popular states like California and New York, where living costs are 58% and 30% above the national average.
2. Infrastructure and Transportation
South Dakota faces several challenges due to its aging infrastructure. 34% of the roads in the state are in poor or fair condition, and over 960 bridges are currently structurally deficient. Additionally, the state needs $1.1 billion to improve its water infrastructure.
State officials are actively working to improve its road and water infrastructure. South Dakota is set to receive $2.2 billion over five years in federal funding to improve its highways and roads.
3. Climate in South Dakota
South Dakota has a humid continental climate, with four distinct seasons. The summers are hot with temperatures ranging from 64°F-85°F. In contrast, winters are extremely cold with temperatures ranging from -9°F-26°F with heavy snowfall.
However, due to its location in the infamous Tornado Alley, South Dakota is a high-risk state for tornadoes, blizzards, wildfires, and floods. It’s crucial to check FEMA-designated high-risk zones and your city guidelines before moving to South Dakota.
4. Laws and Regulations
- Vehicle and Driver’s License Registration: You have to register your vehicle and obtain a South Dakota driver’s license within 90 days of moving to South Dakota. You will need proof of residency, insurance, and title documents for registration.
- Moving to South Dakota with a Gun: Adults aged 18 years and above are allowed to carry a firearm without a permit. Both concealed and open carry are allowed without a permit. Though not necessary, the permits are useful when traveling to other states.
- Recreational Marijuana: Using marijuana for recreational purposes is illegal in South Dakota. Possession of any amount can result in up to $2,000-$30,000 in fines and up to 15 years in prison.
- Pet Registration Laws: There is no statewide law requiring pet licensing and vaccination in South Dakota. However, several cities have their own pet registration and vaccination laws. Visit your city website to learn about pet registration laws in your area.
5. Tax Burden in South Dakota
South Dakota has one of the lowest tax burdens in the country. Here’s a breakdown:
- Income Tax in South Dakota: South Dakota is among the 9 states in the country that do not levy any state income tax. Additionally, cities are also not allowed to levy any additional local income tax.
- Sales Tax in South Dakota: South Dakota levies a 4.2% sales tax on goods and services. Cities often levy a local sales tax ranging from 0%-2%. Apart from this, some cities also levy 1% municipal gross receipts tax (MGRT).
- Property Tax in South Dakota: South Dakota has a property tax rate of 0.99%, which is slightly higher than the national average of 0.90%. Plus, cities often levy an additional local property tax.
How to Move to South Dakota?
Before buying a house in South Dakota, follow this step-by-step guide for a seamless move:
1. How to Plan Your Logistics?
- If you want to skip all the heavy lifting, consider hiring a professional mover. You can expect to pay around $182 per hour. However, this amount can vary depending on the size of your belongings and the distance.
- If you want to DIY, renting a truck is a better option. The average cost to rent a mid-sized truck with a load capacity of 4,000 to 6,000 lbs ranges between $40 and $80 per day. Be sure to factor in additional charges for mileage, fuel, and insurance.
2. How to Set Up Utilities?
Getting your utilities set up is a straightforward process in South Dakota:
- Electricity and Gas: Multiple companies and rural cooperatives provide energy in South Dakota. Black Hills Energy and NorthWestern Energy are the largest energy providers. Visit their website to check availability in your area and begin the service.
- Water and Sewer: These services in South Dakota are usually provided by local municipalities, along with a few private companies. Visit your city website to find out the appropriate service provider for your area.
- Internet and Cable: Midco, CenturyLink, and Bluepeak are among the largest internet and cable service providers in South Dakota. Costs typically range from $35 to $80. Visit their respective websites to know more about availability in your area.
3. How to Enroll Your Kids in Schools in South Dakota?
Most schools in South Dakota offer online registration:
- For Kindergarten: Children must be at least 5 years old for enrollment in kindergarten or first grade before September 1. You will need the child’s birth certificate, vaccination records, proof of residency, and a photo ID.
- For Older Kids: You’ll need all the above-mentioned documents, in addition to transcripts and a withdrawal form from their previous school. If your kids are high school athletes, check their athletic eligibility with the new school before enrolling.
- Transfer and Special Cases: Transfers and special cases in South Dakota are usually managed by the local school district office. You can visit their website or directly reach out to the school district office for assistance in the process.
4. How to Transfer Your Job or Find a New One?
- Work From Home: 19.7% of employees in South Dakota work from home. If you are someone who works remotely, just ask your employer about any state-specific tax and employment laws.
- Find a New Job: Dakotaroots.com offers personalized job matching and access to SDWORKS, South Dakota’s largest online job database. You can also visit job portals like Indeed and LinkedIn to search and apply for jobs in your city.
5. How to Find the Perfect House?
The South Dakota housing market leans in favor of buyers at present. 18.9% of listed homes have seen price drops, and inventory has increased by 11.6%. This price drop and increased supply give buyers more negotiating power to secure better deals.
- In popular cities like Winner, Rapid City, and Aberdeen, the average rent is around $1,225. It typically depends on the neighborhood you’re moving to and the available amenities.
- If you plan to buy a home in a popular city, homes for sale in Winner cost around $248K. Meanwhile, cities like Huron and Sioux Falls offer more affordable options, with median home prices of $171K and $206K, respectively.
Should I Move to South Dakota?
Yes, you should definitely move to South Dakota. The state combines new opportunities, a good quality of life, and friendly communities. However, relocating to South Dakota isn’t easy. It takes time, careful planning, and effort to find the perfect place to call your home.
With Houzeo, South Dakota’s best home-buying website, buying a house in the Mount Rushmore State is simple. You can browse through the latest listings, save your favorites, schedule showings, and submit offers, all at your fingertips.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Data Sources
To help you make a smart move to South Dakota, we analyzed key data points that impact relocation costs, lifestyle, and employment prospects. We’ve sourced reliable, up-to-date data across the following categories:
- Statistical Atlas: Major employers
- Zillow: Average rent, Median home price
- MoveBuddha: Estimated moving costs
- Thisoldhouse: DIY truck rental rates, Average cost of moving
By backing our insights with real numbers, we give you a clear picture of what it really takes to relocate to South Dakota, long before the moving boxes are packed.
