Top 12 Best Places To Live In South Dakota In 2023

Mary Grace Schmid

8 - Minute Read

UPDATED: May 19, 2023

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With “great faces and great places,” South Dakota offers adventure in the heart of the Midwest. Often referred to as “the land of infinite variety,” South Dakota boasts unique rock formations in the Badlands, more miles of shoreline than Florida and four gorgeous seasons.

If you are considering buying a home in South Dakota, you can have access to all of its enchanting scenery and city life, all without breaking the bank. But within the 16th largest state in the country, where are the best places to start house hunting in South Dakota? Fortunately, the best places to live in the Mount Rushmore State all offer distinct features that may appeal to your future housing needs.

Is South Dakota A Good Place To Live?

According to the 2021 U.S. News & World Report, South Dakota ranks as one of the most fiscally stable and affordable states in the country. Coming in at #15 across all 50 states, South Dakota residents enjoy a low cost of living, a relatively affordable housing market, easy access to nature, excellent air and water quality, and low pollution – all of which contribute to a high quality of life for those who reside in South Dakota.

Agriculture accounts for 20% of South Dakota’s economy, with bioscience, outdoor recreation, oil production and tourism contributing to the state’s economic activity. And the state’s natural environment contributes to its economic success—South Dakota ranks #3 in the country, exhibiting some of the best air and water quality across the nation.

When figuring out where to live, you’ll want to consider what matters most to you in your current stage of life. Weighing the different factors that are involved in choosing a location, conducting thorough research and visiting the areas that you are interested in are all important steps in deciding where you want to plant your roots.

The 12 Best Cities To Live In South Dakota

Considering buying a house in the great state of South Dakota? Let’s take a look at some of the best cities to live in.

Housing data were put together based on the 2020 U.S. Census regarding the population, median household income, median home price and median monthly rental price of each listed city.

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1. Rapid City

Settled near the Black Hills Mountain range in the southwest portion of South Dakota, Rapid City is surrounded by valleys and coniferous wooded areas, with a downtown area that has that classic “Main Street” feel. Public art projects, dozens of restaurants and historic buildings give Rapid City that Western town feel while also making it a great place for young professionals and their families to live and work.

And if you want to visit South Dakota’s most iconic landmark while residing in Rapid City, you’re in luck – the National Memorial is only a 30-minute drive away. Custer State Park, Crazy Horse Memorial, the Black Hills National Forest and the Jewel Cave National Monument are other nearby attractions.

Check out homes for sale in Rapid City and explore real estate trends in the area.

  • Population: 74,703
  • Median household income: $53,760
  • Median home price: $194,100
  • Median monthly rental price: $855

2. Sioux Falls

Ranked as one of the best cities for young people and professionals, Sioux Falls is South Dakota’s largest city and lies within the eastern portion of the state. Sioux Falls was appropriately named after the cascading waterfalls that flow within Falls Parks, which is just one of the city’s variety of attractions. Sioux Falls is home to the Great Plains Zoo & Delbridge Museum of Natural History, the World’s Only Corn Palace, the Washington Pavilion Visual Arts Center and more.

Sioux Falls is also consistently ranked as one of the best places to live within the country. With affordable housing costs, a wide range of employment opportunities and rich culture, Sioux Falls is one of the best cities for affordable cost of living in the Midwest.

Check out homes for sale in Sioux Falls and explore real estate trends in the area.

  • Population: 192,517
  • Median household income: $61,738
  • Median home price: $205,100
  • Median monthly rental price: $838

3. Brandon

The city of Brandon, South Dakota is a small community just five miles outside of Sioux Falls. Brandon offers proximity to the urban opportunities of Sioux Falls, but also presents some benefits of its own. With an astoundingly low crime and unemployment rate, Brandon’s residents have a chance to live in a tight-knit community with plenty of room to grow. Brandon’s public schools are also ranked highly, making it a great place for families of all sizes.

Check out homes for sale in Brandon and explore real estate trends in the area.

  • Population: 11,048
  • Median household income: $93,536
  • Median home price: $245,500
  • Median monthly rental price: $905

4. Pierre

As the capital of South Dakota, Pierre lies in the center of the state right along the Missouri River. With the river and Lake Oahe nearby, Pierre is a prime location for outdoor enthusiasts and avid anglers. For those who prefer to stay downtown, charming shops and restaurants line the streets, along with heritage centers and monuments. The State Capitol Dome, which was completed in 1910, is also open to the public to enjoy.

While it’s small for a state capital, Pierre has an expanding job market, captivating scenery and a welcoming community. Plus, Pierre real estate offers several historic homes and a high-ranking Pierre School District.

Check out homes for sale in Pierre and explore real estate trends in the area.

  • Population: 14,091
  • Median household income: $68,263
  • Median home price: $180,800
  • Median monthly rental price: $732

5. Tea

Anyone care for some Tea? With a unique name and close community, Tea has the quintessential Midwest hospitality without being too far from Sioux Fall’s urban appeal. But the town of Tea has enough action by itself with year-round community activities. For a small town, Tea has impressive amenities, including an athletic complex, good public schools and a low crime rate.

Check out homes for sale in Tea and explore real estate trends in the area.

  • Population: 5,598
  • Median household income: $89,452
  • Median home price: $224,800
  • Median monthly rental price: $966

6. Aberdeen

Home to Northern State University, Aberdeen is the third largest city in the state, with vibrant neighborhoods and plenty of activities for both visitors and residents to enjoy. Parks, an aquatic center, community gardens and an airport give Aberdeen the convenience of a larger city with a smalltown feel.

Aberdeen is also home to Storybook Land, which is situated in Wylie Park. With a castle, train, life-size characters and interactive scenes, both kids and adults will enjoy this free immersive experience.

Check out homes for sale in Aberdeen and explore real estate trends in the area.

  • Population: 28,495
  • Median household income: $56,455
  • Median home price: $169,400
  • Median monthly rental price: $669

7. Brookings

Another college town, Brookings is the home of South Dakota State University, the Children’s Museum of South Dakota and large manufacturers, offering plenty of employment opportunities for its residents. Brookings is also one of the youngest cities in South Dakota, with a median age of 24 years old.

Some of Brookings’ amenities include the Dakota Nature Park, avid shopping and nightlife in the downtown area and community activities for all ages. Living in Brookings means living in a safe, diverse community with quality school districts and outdoor amenities.

Check out homes for sale in Brookings and explore real estate trends in the area.

  • Population: 23,377
  • Median household income: $53,845
  • Median home price: $187,100
  • Median monthly rental price: $763

8. Watertown

Watertown is a quaint community in northeast South Dakota with unique destinations like the Bramble Park Zoo and the Redlin Art Center, home to the works of renowned wildlife artist Terry Redlin.

Watertown also lives up to its own name, with the glacial lakes of Lake Kampeska and Pelican Lake located right near town. Lake Kampeska is a popular walleye fishery with pristine golf courses on its shores. Pelican Lake offers camping cabins, fishing, boating and a great spot to watch migrating birds fly by. For both visitors and residents alike, Watertown combines common interests to make a great place to enjoy with the ones you love.

Check out homes for sale in Watertown and explore real estate trends in the area.

  • Population: 22,655
  • Median household income: $52,145
  • Median home price: $175,600
  • Median monthly rental price: $760

9. Harrisburg

If you are looking for the comfort of suburban life, Harrisburg offers a close community with affordable housing options. Located just outside of Sioux Falls, Harrisburg offers a short commuter route to the city, quality choices for both schooling and housing and a close community. There are also plenty of recreational activities available near Harrisburg, whether it’s swimming at the Lake Alvin Recreation Area or picnicking at Good Earth State Park.

Check out homes for sale in Harrisburg and explore real estate trends in the area.

  • Population: 6,732
  • Median household income: $78,826
  • Median home price: $210,200
  • Median monthly rental price: $1,016

10. Vermillion

Near the Missouri and Vermillion River lies the town of Vermillion, the home of the University of South Dakota. Vermillion lies near the Nebraska border and has affordable housing, expansive job opportunities and a vibrant college town atmosphere. Whether you are setting out to explore Vermillion’s parks, the historic Austin-Whittemore House or different artistic sites, you and your family are sure to find something to love in Vermillion.

Check out homes for sale in Vermillion and explore real estate trends in the area.

  • Population: 11,695
  • Median household income: $43,750
  • Median home price: $158,800
  • Median monthly rental price: $727

11. Madison

Northwest of Sioux Falls is Madison, a college town with a blend of affordability, attractions, community events, safe streets, a great education system and a family-friendly community. Madison is surrounded by glacial lakes and state parks, making it the perfect location for any weekend warrior. The vibrancy of Madison’s downtown offers a strong sense of community for both residents, local businesses and the students at Dakota State University.

Check out homes for sale in Madison and real estate trends in the area.

  • Population: 6,191
  • Median household income: $54,861
  • Median home price: $124,300
  • Median monthly rental price: $664

12. Yankton

Yankton, once a stopping point for the explorers Lewis and Clark, now stands as a town along the Missouri River on the Nebraska border. You can even walk to the neighboring state by crossing the Meridian Bridge, which is open to both foot and bike traffic.

Along with the scenic views of the river, Yankton has a quaint historic center, a variety of outdoor recreational opportunities and an affordable cost of living for its residents.

Check out homes for sale in Yankton and explore real estate trends in the area.

  • Population: 15,411
  • Median household income: $54,278
  • Median home price: $155,000
  • Median monthly rental price: $630

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The Bottom Line: You have some interesting options in South Dakota

While South Dakota is known for its astonishing natural beauty, its abundance of charming cities and rural communities comes as a surprise to those not from the Mount Rushmore State. Whether you prefer spending your days in the outdoors or walking around the downtown of a bustling city, South Dakota has something for everyone.

Your options for great places to live in South Dakota aren’t limited to this list, either. There are small towns and other cities spread across the state that offer even more unique amenities. When looking for a place to live, what matters most is what your needs are and where you feel most at home.

If you’re ready to get started on the major milestone of purchasing a home, contact us today to get prequalified for a mortgage.

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Mary Grace Schmid

Mary Grace Schmid is a staff writer covering homeownership, personal finance and lifestyle topics. She has a B.A. in public relations from Baylor University with a minor in political science and enjoys photography, music and reading in her free time.