Local housing shortage amplified through home purchases by out-of-staters

According to local realtors, out-of-state homebuyers have accounted for 30-40 percent of home purchases.

RAPID CITY, S.D. — During the pandemic, the housing market has been booming in some places.

The market in the Black Hills specifically has seen many houses sell for or over their original asking price with many of the buyers coming from out-of-state.

“They’re listed and sold in hours within days or hours sometimes,” said Black Hills Realty Broker, Jill VantHul.

In fact, local real estate agents are saying that 30 to 40 percent of the homes in the hills are being purchased by buyers outside the state. The home purchases come in leu of a home shortage in the area.

Historically, retirees have been the main home-buyers in area.

Now, they’re coming from both coasts, mainly from states like California, Colorado and Minnesota with the demographic being mostly young, working families.

Reasons for moving vary, but South Dakota’s relatively unrestricted COVID response has put it on the map.

Black Hills Housing 3

“One reason why they’re attracted to South Dakota and the Black Hills in particular is the response that our state has had to COVID and they’re attracted to that,” VantHul said.

Prices and demand are not only for pre-existing homes. Buyers are also looking to purchase and build upon land.

“They can kinda take their time a little bit more and it’s a different process, but you know, sometimes it’s a better option for people that are having trouble finding an existing property,” VantHul said.

She also says that the current housing market could keep its peak for the foreseeable future and that sellers should seek the best deal possible.

Categories: ConnectCenter1-Business, Local News, South Dakota News