Pros, cons, key stats, and the strongest South Dakota cities to consider. Based on our analysis of 20 tracked South Dakota city markets.
Yes, for many movers. The better answer is city-specific: South Dakota contains both stronger and weaker markets, and the right fit depends on your budget, job needs, climate tolerance, and tax situation.
Pros
- No state income tax on wages
- Social Security is not taxed by the state
- Middle-of-the-pack tracked-city housing ($333,043)
- Healthy housing-market momentum in tracked cities (71/100 median)
- Box Elder is one of the strongest current city signals in South Dakota
Cons
- Fewer large/mid-size city options than bigger states (20 tracked)
- State averages hide major city-by-city differences
What this means in practice
Across 20 tracked South Dakota city markets, the median home costs $333,043 with a 1-year change of +3.1% and a median momentum score of 71 out of 100.
On taxes, No state income tax. Lower base sales (4.5%, local pushes higher). Property tax above average. SS + pensions untaxed. That matters because the cheapest state on paper can still be expensive if property tax, insurance, or local housing costs overwhelm the headline rate.
State-level averages mask city-level variation — within any state, individual cities can have radically different cost, climate, and trajectory. Use the strongest-momentum cities below as a starting point.
Top 5 South Dakota cities by momentum
- Box Elder — momentum 78, median $366,882
- Brookings — momentum 73, median $316,002
- Vermillion — momentum 73, median $273,495
- Tea — momentum 73, median $382,864
- Sioux Falls — momentum 72, median $333,043