Overview of the Commercial and Residential
Real Estate Market in South Dakota
Famous across the world for the Mount Rushmore National Memorial located in the Black Hills, South Dakota is a sparsely populated state with 853,175 people. It ranks 46th in population and averages just under 11 people per square mile. Sioux Falls is the largest city and has a population of 164,676. Its median home value ($152,200) is about $20,000 more than the state's median home value ($132,400), according to the U.S. Census. The median household income for Sioux Falls is $51,672 and the homeownership rate is 61.6 percent. State-wide the median household income is $49,495 and the homeownership rate is 68 percent. With a population of 70,812, Rapid City is the second largest city in the state. It has a median home value of $155,700, a median household income of $46,370, and a homeownership rate 57.4 percent. Thirty percent of Rapid City residents live in multi-unit structures.
A recent report on available commercial space in Sioux Falls found inventories continuing to dwindle. Commercial real estate company NAI Sioux Falls said in its annual market outlook that retail vacancies were at 2.85 percent, which is the lowest number since they began making these annual reports in 2008. They found the office space vacancy rate at 6.63, which makes the fifth consecutive year office vacancies have declined, starting at 11.58 percent in 2009. Although 2014 saw commercial sales down to $24.4 million for the city from $32 million in 2013, NAI expects 2015 to be a good year for commercial real estate in the city. The gross state product of $39.8 billion puts South Dakota about 45th in state output. Outside of the major cities, agriculture and tourism are the main industries.
How to Become a Realtor in South Dakota
With the top priority of protecting the public interest, the South Dakota Real Estate Commission is in charge of administering all aspects of licensing for real estate broker associates and brokers. South Dakota does not use the term real estate agent. To begin as a real estate broker associate, applicants must be at least 18 years old and complete 116 hours of Commission-approved real estate classes. The applicant must score at least 75 percent on their state exam. To obtain a real estate broker license in South Dakota, broker associates must be 18 years old, complete the required 116 hours of course work, pass the state broker exam with a score of at least 75 percent, and have two years experience as an active broker associate.