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Rapid City’s emerging housing market gets noticed

More people have been moving to the Black Hills, which in turn is positively affecting the housing market.
Published: Jul. 28, 2021 at 4:08 PM MDT
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RAPID CITY, S.D. (KEVN) -The Rapid City area has been growing due to a number of factors including military and civilian job expansions. Some also credit this uptick to South Dakota’s governor Kristi Noem’s actions during the pandemic.

“The opportunity’s larger because we didn’t shut stuff down last year, I think that’s what’s really spurring the interest here,” said Josiah LaFrance, owner of Pillar Capital & Pillar Properties, “A lot of people didn’t even know South Dakota existed, I mean they’re like, ‘Where’s that?’. Mount Rushmore? OK, but where’s South Dakota?”

Now, Rapid City has been getting some national attention. Wall Street Journal and realtors.com posted a July 2021 emerging housing markets index ranking Rapid City in a couple of categories.

Rapid City took fourth in emerging housing markets out of the largest 300 metropolitan areas in the country. The city was also ranked second in the new market category and first in the biggest movers.

“I’m not surprised in the least, this has been an ongoing conversation for quite a while and I’d like to say that we’re prepared to handle that,” said LaFrance.

LaFrance says that with this uptick, there is also concern that the median income rate is not growing the same rate as housing which is unsustainable.

“At some point that’s going to have to level out, my advice to people is buying now because you have 4-5 years to appreciate, but be prepared in 4 or 5 years when that levels out, to maybe not see quite as much growth in the appreciation of your real estate once you’re at that point but just be prepared for that,” said LaFrance.

As the increase in a home’s value is being factored so is the value and quality of community in the area.

“I think overwhelmingly we want to see the small-town feel with the larger town environment but people moving here might not share that sentiment,” said LaFrance.

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