Homeowning in the Hills, average active price of a Rapid City home goes up 27.4% in one year

Published: Jan. 11, 2022 at 5:48 PM MST
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RAPID CITY, S.D. (KEVN) - Housing is a hot topic in Rapid City, between how much it costs and the lack of it.

The Black Hills Association of Realtors released 2021′s end of year housing statistics, detailing a strong market, but does that strength mean a positive outcome for the community?

Stuart Martin, President of the Black Hills Association of Realtors, says, “we need quality homes built as affordable as we can. That may not be everybody’s budget, but we can’t cut corners building them.”

Housing prices just keep going up. The average active price of a home in the Hills went up more than 25-percent from 2020. In one year, that’s a 90-thousand dollar climb.

The cost isn’t the only problem, though.

“We’ve got a lot of jobs coming into the area,” says Martin.

More people, means we need more homes.

“What’s going to hold us back,” says Martin, “our supply chain.”

Things like concrete, wood and electrical equipment are becoming tougher to get your hands on, “and when you did get them,” Martin explains, “they’re expensive.”

Despite the supply chain struggles, they’re working on introducing more houses to the area.

“We’re going full steam ahead with getting houses coming out of the ground,” says Martin.

However, that ground he’s talking about isn’t cheap either.

“A lot seven years ago purchased at 25-thousand dollars, [versus] a lot today is purchased at 75-thousand dollars or 50-thousand dollars. All of that goes into the average price of a home going up.”

He also says more affordable housing comes from those who move out of their older homes and out of the area, “and, then they can move up into higher priced homes.”

But, he says people aren’t leaving, “because, they don’t have a place to go. So, where are you going to go?”

He says it seems much of these things are here to stay.

“I don’t see that we’re going to decrease, and I think 2022 is going to be just as strong.”

But, is it fair to say that it’s too strong?

“I honestly can’t answer that question,” says Martin. “I’m not the economics guy that’s going to be able to tell you that. I would say that there’s probably a little bit of a fear on, well, how are we going to get all of the people into places that we need to.”

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