Besides its friendly, low-key attitude and natural beauty, South Dakota offers some of the lowest home prices in the nation. The median home value is $58,871, well under half the national median. It's no wonder, then, that the homeownership rate is above the national average, at almost 70%.
Many first-time home buyers take advantage of South Dakota's affordable housing market and low contractor fees to gain a foothold in real estate. In addition to an annual appreciation rate of .1%, homeowners boost their home equity through home improvement investment. The state's urban centers, Sioux Falls and Rapid City, offer some of the highest returns on remodeling projects.
Siding and other home exterior improvements rank as the #1 project throughout the Midwest, with returns of 98%. Kitchen remodeling and window replacement also keep South Dakota's contractors busy; in Sioux Falls, returns on these projects rank in the 60-70% range. These resale values are in large part due to South Dakota's contractors, who offer relatively low prices for such high-value projects as kitchen and home exterior remodeling.
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