South Dakota offers more than prairies and Mount Rushmore, it’s a state shaped by outdoor adventure, strong community values, and a pioneering spirit. But challenges include harsh winters, limited economic diversity, and geographic isolation. This guide delivers a balanced look at life in the 605 and highlights the best cities for young professionals, families, and retirees…
The 5 Best Places to Live in South Dakota: A City Comparison
- Local Editor:Local Editor: The HOMEiA Team
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Category: USA , South Dakota
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South Dakota is a state of breathtaking natural beauty, where the rugged Badlands meet the rolling prairies and vibrant urban centers offer modern amenities against a backdrop of Western heritage. Choosing the right community is crucial to unlocking a lifestyle that fits your ambitions, no matter the goal.
This guide provides an in-depth, data-driven analysis of the state’s five best places to live. We’ve moved past simple charm to evaluate these population centers on the factors that matter most: economic opportunity, affordability, safety, access to amenities, and unique quality of life. From the bustling energy of Sioux Falls to the historic charm of Rapid City, we break down what makes each option a premier destination for building your future in the Great Plains.
For those considering other states, you might also explore our comparison of the pros and cons of living in Washington State.
Table of Contents:
Key Takeaways
- Diverse Options for Diverse Needs: These top cities offer distinctly different lifestyles, from the economic engine of Sioux Falls to the outdoor paradise of Rapid City and the college town atmosphere of Brookings.
- Affordability is a Constant: A red thread for our five cities is a cost of living well below the national average, with accessible housing costs compared to other regions.
- Safety Varies by Community: Safety ratings range from excellent to moderate, making it important to research specific neighborhoods and cities based on your personal priorities.
- Economic Drivers Differ: Each city’s job market is anchored by different sectors—healthcare, tourism, education, or agriculture—requiring alignment with your career field.
- Lifestyle is Key: The balance between urban amenities and outdoor access, along with community culture, often becomes a deciding factor when choosing between these exceptional locations.
I. Methodology: How We Chose the Best
To ensure a comprehensive and objective ranking, our analysis is based on a multi-factor methodology evaluating each city on key criteria essential for quality of life in the South Dakota context.
Our evaluation criteria are weighted as follows:
- Employment & Economy (25%): Assesses job market health, major employers, economic diversity, and income levels relative to the local cost of living.
- Housing & Affordability (25%): Evaluates median home value, average rent, and home-price-to-income ratios, acknowledging South Dakota’s overall affordability but important local variations.
- Quality of Life & Culture (20%): Encompasses access to unique outdoor recreation, cultural attractions, dining, entertainment, and overall lifestyle.
- Access & Infrastructure (15%): Considers connectivity (road, air), healthcare access, internet reliability, and other critical services.
- Safety & Community (15%): Reviews crime statistics and overall community engagement, resilience, and family-friendliness.
Data is compiled from reputable 2026 sources, including the U.S. Census Bureau, Bureau of Labor Statistics, FBI crime data, and real estate market analyses (Zillow, local MLS).
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II. The 5 Best Cities: A Portrait of South Dakota’s Diversity
1. Watertown: The Lakeside Community
HOMEiA Score: 80/100
- Cost of Living: 13% below U.S. average
- Monthly Rent: $820
- Home price to income ratio: 4.3:1
- Income to rent ratio: 59.8x
- Safety rating: 70/100
A. Employment & Economy Watertown’s economy is diverse, with strengths in manufacturing, healthcare, and retail. Major employers include Lake Area Technical College, which drives workforce development, along with manufacturing companies including Terex and healthcare providers through Prairie Lakes Healthcare System. Being a hub makes it a commercial center for the surrounding lakes region.
B. Housing & Affordability The Town offers attractive housing options at prices well below national averages, with a cost of living 13% below the U.S. average. Home-price-to-income ratio of 4.3:1 indicates desirable affordability, particularly for families and young professionals. The housing market includes options near the lakes and throughout the city.
C. Quality of Life & Culture Life revolves around the area’s numerous lakes, providing exceptional opportunities for fishing, boating, and water sports. Here is home to the Bramble Park Zoo, picturesque parks, and a growing downtown with local businesses and restaurants. Lake Area Technical College adds educational and cultural opportunities to the community.
D. Access & Infrastructure Infrastructure supports residents and the tourism industry, with well-maintained roads, reliable utilities, and comprehensive public services. Being located along U.S. Highway 212 provides seamless regional connectivity, while Watertown Regional Airport (ATY) offers convenient travel options.
E. Safety & Community With a safety rating of 70/100, this is a safe and family-friendly environment. The community is outdoor-focused and welcoming, with strong schools and numerous events celebrating the area’s natural beauty and recreational opportunities.
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2. Aberdeen: The Regional Hub
HOMEiA Score: 82/100
- Cost of Living: 15% below U.S. average
- Monthly Rent: $800
- Home price to income ratio: 3.9:1
- Income to rent ratio: 64.5x
- Safety rating: 68/100
A. Employment & Economy: Aberdeen serves as a regional economic hub for northeastern South Dakota, with a diverse economy spanning healthcare, manufacturing, retail, and agriculture. Major employers include Avera St. Luke’s Hospital, 3M, and numerous agricultural businesses. Prime location makes it a commercial center for the surrounding agricultural region, providing stable employment opportunities.
B. Housing & Affordability: Some of the most affordable housing in South Dakota can be found here, with a cost of living 15% below the national average. The home-price-to-income ratio of 3.9:1 represents hard-to-find value, making homeownership particularly accessible. Well-maintained historic homes and affordable newer construction are a majority of the housing options.
C. Quality of Life & Culture: This provides a balanced lifestyle with access to cultural amenities like the Aberdeen Community Theatre and Dacotah Prairie Museum, along with outdoor recreation at Wylie Park and surrounding lakes. NSU adds cultural and educational opportunities, while the city’s parks and recreation programs offer activities for all ages.
D. Access & Infrastructure: As a regional hub, comprehensive services including healthcare, shopping, and education are available. Infrastructure supports residents and the surrounding agricultural community, with reliable utilities and well-maintained public facilities. Aberdeen Regional Airport provides convenient air travel options.
E. Safety & Community: With a safety rating of 68/100, those living here help maintain a safe and family-friendly environment. The community is known for its head-down work ethic, neighborly atmosphere, and engagement in local events and organizations that strengthen community bonds.
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3. Brookings: The College Town Gem
HOMEiA Score: 84/100
- Cost of Living: 12% below U.S. average
- Monthly Rent: $850
- Home price to income ratio: 4.1:1
- Income to rent ratio: 61.8x
- Safety rating: 75/100
A. Employment & Economy: Brookings’ economy centers around South Dakota State University, which provides consistent employment in education, research, and extension services. It also hosts major employers including Daktronics and 3M, creating a diverse economic base combining academic, manufacturing, and agricultural sectors. Doing so provides economic resilience and opportunities for professionals across multiple fields.
B. Housing & Affordability: Exceptional value is available with a cost of living 12% below the national average. The home-price-to-income ratio of 4.1:1 indicates favorable affordability, making homeownership accessible to young professionals and families. Houses include charming historic homes near campus and newer developments throughout the city.
C. Quality of Life & Culture: As a college town, many benefit from the cultural and intellectual energy of SDSU, including Division I athletics, performing arts, and academic events. The city boasts luscious parks, vibrant downtown with local shops and restaurants, and the Children’s Museum of South Dakota. The community maintains a small-town feel with big-city amenities.
D. Access & Infrastructure: Located along Interstate 29, convenient access to Sioux Falls and the broader region is a plus. Modern healthcare facilities through Brookings Health System and reliable infrastructure that supports both residents and the university community are present. High-speed internet availability supports remote work and education.
E. Safety & Community: With a safety rating of 75/100, it ranks as one of South Dakota’s safest cities. The community is tight-knit, family-oriented, and highly engaged, with respected schools and numerous community events that foster connection and civic pride among residents.
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4. Rapid City: The Gateway to Adventure
HOMEiA Score: 86/100
- Cost of Living: 8% below U.S. average
- Monthly Rent: $950
- Home price to income ratio: 4.8:1
- Income to rent ratio: 52.6x
- Safety rating: 62/100
A. Employment & Economy: Rapid City’s economy is driven by tourism, healthcare, and military presence. As the gateway to the Black Hills and Mount Rushmore, tourism provides a steady stream of jobs in hospitality and retail. Residents also benefit from Ellsworth Air Force Base and major healthcare providers like Monument Health, creating a stable and diverse employment base.
B. Housing & Affordability: RC offers desirable housing options at prices well below national averages. The home-price-to-income ratio of 4.8:1 reflects fair affordability, though recent growth has increased demand. Options available include everything from historic downtown properties to newer suburban developments, providing choices for various budgets and preferences.
C. Quality of Life & Culture: Life is defined by unparalleled access to outdoor recreation in the Black Hills, from hiking and mountain biking to skiing and rock climbing. Downtown features the popular City of Presidents sculpture walk, numerous art galleries, and a growing food scene. Proximity to national parks and monuments makes every weekend an adventure.
D. Access & Infrastructure: Rapid City Regional Airport (RAP) provides convenient air travel options, while Interstate 90 connects the city to the rest of the region. Modern healthcare facilities and reliable utilities are around, though some infrastructure challenges exist due to rapid growth and seasonal tourism demands.
E. Safety & Community: With a safety rating of 62/100, locals help maintain a generally safe environment with some variation between neighborhoods. The community is outdoor-focused and family-friendly, with a strong sense of Western heritage and a welcoming attitude toward newcomers and tourists alike.
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5. Sioux Falls: The Economic Powerhouse
HOMEiA Score: 88/100
- Cost of Living: 10% below U.S. average
- Monthly Rent: $1,100
- Home price to income ratio: 4.2:1
- Income to rent ratio: 58.2x
- Safety rating: 65/100
A. Employment & Economy: Sioux Falls is South Dakota’s undisputed economic engine, serving as their financial, healthcare, and retail hub. It boasts a diverse economy anchored by major healthcare systems including Sanford Health and Avera Health, financial services companies including Wells Fargo and Citibank, and a growing tech sector. Economic diversity creates the state’s most robust job market with opportunities across multiple industries and career levels.
B. Housing & Affordability: SF offers a balanced housing market ranging from historic homes in established neighborhoods to new construction in growing suburbs. Home-price-to-income ratio of 4.2:1 indicates ideal purchasing power for residents. While housing costs are higher than other cities, they remain significantly below national averages, making homeownership accessible to many.
C. Quality of Life & Culture: Here holds an excellent balance of urban amenities and natural beauty, with Falls Park serving as the stunning centerpiece. Sioux Falls boasts a vibrant downtown with standout dining, shopping, and entertainment options, including the Washington Pavilion and numerous local breweries. The Big Sioux River Greenway offers extensive recreational opportunities throughout the city.
D. Access & Infrastructure: As SD’s largest city, comprehensive infrastructure exists including an international airport (FSD), major healthcare facilities, and all the amenities expected in a metropolitan area. The road network and public services are well-maintained, providing reliable connectivity throughout the region.
E. Safety & Community: With a safety rating of 65/100, this maintains a generally safe environment with crime rates comparable to similar-sized cities in the region. A welcoming and family-oriented community, there are standout neighborhood associations and numerous community events that foster engagement and connection among residents.
Comparative Data Table
|
City |
HOMEiA Score |
Cost of Living |
Avg. Rent (2-Bed) |
Home Price to Income Ratio |
Income to Rent Ratio |
Safety Rating |
|---|---|---|---|---|---|---|
| Watertown | 80 | -13% | $820 | 4.3:1 | 59.8x | 70 |
| Aberdeen | 82 | -15% | $800 | 3.9:1 | 64.5x | 68 |
| Brookings | 84 | -12% | $850 | 4.1:1 | 61.8x | 75 |
| Rapid City | 86 | -8% | $950 | 4.8:1 | 52.6x | 62 |
| Sioux Falls | 88 | -10% | $1,100 | 4.2:1 | 58.2x | 65 |
Conclusion: Finding Your Perfect South Dakota Match
The best South Dakota city depends on personal priorities and lifestyle preferences. Sioux Falls delivers urban energy and diverse career opportunities, while Rapid City offers unparalleled access to outdoor adventure. Brookings provides the intellectual stimulation of a college town with exceptional safety, Aberdeen offers regional hub affordability, and Watertown combines lakeside living with economic stability.
Each location presents a unique balance between cost, opportunity, and lifestyle. The ideal choice hinges on aligning these factors with your personal, financial, and professional goals for life in the Mount Rushmore State. For those still considering options, our guide to the best places to live in Wyoming might provide additional insights for mountain-state living.
FAQs About Living in South Dakota’s Best Cities
1. Which city has the best job market?
Sioux Falls has the largest, most diverse, and most dynamic job market in the state, spanning healthcare, finance, innovation, and retail. Rapid City offers bountiful opportunities in tourism, healthcare, and military-related fields.
2. I’m a remote worker. Where should I move?
For the best blend of reliable infrastructure, amenities, and quality of life, Sioux Falls is an exceptional choice. For those prioritizing outdoor access and lower costs, Rapid City or Brookings offer great alternatives with reliable internet and community amenities.
3. Are these cities safe?
Safety varies by community. Brookings ranks as the safest (75/100), followed by Watertown (70/100) and Aberdeen (68/100). Sioux Falls (65/100) and Rapid City (62/100) have urban crime patterns typical for their size but maintain many safe neighborhoods.
4. What’s the best city for young professionals?
Sioux Falls offers the most vibrant social scenes, networking opportunities, and diverse career paths for young professionals. Brookings provides an affordable, intellectually stimulating alternative with the energy of a college town.
5. What’s the best city for families?
Families often choose based on schools and safety. Brookings offers excellent schools and the highest safety rating (75/100), along with family-friendly amenities. Sioux Falls provides the most comprehensive educational options and family activities, while Watertown offers lakeside recreation and strong community values.
For those considering other relocation options, you might explore our guides to moving to Minnesota, moving to Colorado, or moving to Utah. If you’re interested in comparing costs, check out our analysis of the cost of living in California vs Texas or explore the pros and cons of living in Tennessee. For those seeking affordable options, our guide to the most affordable places to live in Colorado might be helpful, or you could consider the best places to live in Montana for another mountain-state alternative.
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