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There's a the age old question everyone thinks about when they decide to move to a city in South Dakota:
Should I buy a place or rent? Well, we aren't here today to solve that problem for you exactly. We are just assuming you'll do the right thing and a buy a place. And while we are happy to tell you the best place to live in South Dakota, this analysis is going to tackle the question of the best place to buy a house as an investor. That is we are going to try and determine the up and coming cities in the Mount Rushmore State.
To do that we are going to look at places in South Dakota that are growing faster than average, but where home prices are below average. In every day terms, the "deals". The best deal in South Dakota at the moment? That would be Tea according to our analysis.
Here's a look at the top ten places to buy a home in south dakota for 2020:
- Tea (Homes For Sale)
- Belle Fourche (Photos | Homes For Sale)
- Harrisburg (Homes For Sale)
- Sturgis (Photos | Homes For Sale)
- Madison (Photos | Homes For Sale)
- Box Elder (Photos | Homes For Sale)
- Brandon (Photos | Homes For Sale)
- Vermillion (Photos | Homes For Sale)
- Spearfish (Photos | Homes For Sale)
- Huron (Photos | Homes For Sale)
What's the best place to buy a home in South Dakota for 2020? According to our analysis, would the the ideal place to buy a home looking into the future.
The methodology that wen't into this can be a bit complicated, so we'll break it down for you in as much detail as we can below. If you're not worried about finding a deal on good places to live, check out the most expensive places to live in south dakota and, for those of you on a budget, the cheapest places to live in south dakota.
For more South Dakota reading, check out:
- These Are The 10 Best Counties To Live In South Dakota
- 10 Best Places To Raise A Family In South Dakota
- These Are The 10 Best Places To Retire In South Dakota
The 10 Best Cities To Buy A House In South Dakota For 2020
Belle Fourche was named by French explorers coming from New France, referring to the confluence of what is now known as the Belle Fourche and Redwater Rivers and the Hay Creek. Beaver trappers worked these rivers until the mid-19th century, and Belle Fourche became a well known fur trading rendezvous point. During and after the gold rush of 1876, farmers and ranchers alike settled in the fertile valleys, growing food for the miners and their work animals. At the same time, the open plains for hundred of miles in all directions were being filled by huge herds of Texas and Kansas cattle. Towns sprang up to serve the ever-changing needs of the farmers and ranchers. In 1884, the Marquis de Mores, a French nobleman and contemporary of Theodore Roosevelt, established a stagecoach line between Medora, North Dakota, and Deadwood, South Dakota. The Belle Fourche way station included a stage barn and a saloon.
Before the railroad was built through Lincoln County, a stagecoach brought mail to the Johnson Harris Homestead located on Nine Mile Creek in Dayton Township. Johnson Harris named the post office Harrisburg in honor of himself.
Sturgis was founded in 1878. It was originally named Scooptown, because many of the residents "scooped up" their pay from nearby Fort Meade. Its name was later changed to Sturgis in honor of the Civil War Union General Samuel D. Sturgis. In 1889, Sturgis was designated as the county seat of the newly formed Meade County.
Madison was laid out in 1873. The city was renamed after Madison, Wisconsin.
A post office called Brandon has been in operation since 1878. The city took its name from Brandon Township.
Lewis and Clark camped at the mouth of the Vermillion River near the present-day town on August 24, 1804. The previous day, they had killed their first bison; and the following day, they climbed Spirit Mound, according to Clark's journal. In May 1843, John James Audubon visited the Vermillion ravine to view the bird life. The town was considered for the location of South Dakota's first mental institution in 1873, although the hospital was eventually awarded to nearby Yankton. The original town was entirely below the bluffs on the banks of the Missouri River, and three-quarters of the town was washed away in the Great Flood of 1881.
Before the Black Hills Gold Rush of 1876, the area was used by Native Americans. Once the gold rush started, the city was founded in 1876 at the mouth of Spearfish Canyon, and was originally called Queen City. Spearfish grew as a supplier of foodstuffs to the mining camps in the hills. Even today, a significant amount of truck farming and market gardening still occurs in the vicinity.
Huron, located in east central South Dakota, is a result of railroad and land booms in the 1880s. The early history of the town is closely linked with the Chicago and Northwestern Railway. At the direction of Marvin Hughitt, general manager of the railroad, the west bank of the James River was selected as the division headquarters of the railroad. The company gained title to 880 acres of land at that location. Huron was named for the Huron Indians. Exactly who gave it the name was never established, apparently either Marvin Hughitt or someone in the Chicago office of the C&NW railroad company.
How do you determine the best places to buy a home in south dakota for 2020?
We were in real estate for almost five years and have been working on this site for another three. Suffice is to say, we've put a lot of thought into what goes into finding a good place to buy a home.
So all that thinking has come to this moment where we get to spell out how we'd approach finding an up-and-coming place to live in South Dakota. Put differently, the analysis will try to find places in South Dakota with undervalued homes relative to pent up demand.
To do that we looked at the most recent American Community Survey Census data for 2014-2018 and compared it to the previous vintage (2012-2016). Specifically, we used the following criteria:
- Y-o-Y Change In Population (People want to live here)
- Y-o-Y Change In Median Home Prices (People are willing to pay for it)
- Home Prices Relative To The State Average (It's still kinda cheap)
We want places that are growing, have seen home prices increase in recent years, and are still "cheap" for South Dakota with the following caveats:
- Home prices had to be within 20% of the state average (Much lower than that and you get to some of the more dangerous places)
- Home prices increased in the last year, and
- Above 5,000 people (Bigger cities have more data points)
So of the 0 cities and towns in South Dakota, only 18 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 18 for the criteria mentioned above with 1 being the best for that criteria. We averaged the rankings to create a "best place to buy" index with the place having the lowest index being the best. You can download the data here.
Turns out that Tea is the best potential gem in the not-so-rough in the Mount Rushmore State.
Read on for more on these places.
There You Have It - The Best Places To Purchase A House In south dakota for 2020
There's our analysis of the best places to buy a house in South Dakota. And, to be clear, we aren't necessarily saying these places are the best places to live, just that it looks like they might be in a couple of years based on the data.
In fact, every place in the following table meets our criteria, so even though it may not look super long, remember we started off with all 0 places in the state.
So if we'd could rent or buy in these cities, we'd definitely buy.
For more south dakota reading, check out:
Detailed List Of The Best Places To Buy A Home In South Dakota