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The face of homeownership is changing. Nationally, Gen Z and millennials are redefining what a typical homebuyer looks like, with more young adults—especially women—purchasing homes on their own. This shift is reshaping priorities, financing strategies, and even the types of homes in demand.
But how does this trend play out in Sioux Falls? Here, affordability, community values, and a strong local economy create a unique real estate landscape. At BHGRE® Beyond, we understand that real estate is about more than just transactions—it’s about understanding the people and lifestyles behind them. This guide explores the national rise of single homebuyers, with a focus on Gen Z and millennials, and examines how Sioux Falls’ market is adapting to these evolving demographics.
The National Surge of Single Homebuyers
The National Association of REALTORS’ (NAR) 2026 Home Buyers and Sellers Generational Trends Report reveals a dramatic shift in who’s buying homes. Here’s what the data shows:
Gen Z: Buying Alone at Unprecedented Rates
53% of Gen Z buyers (ages 18–26) are purchasing homes alone—more than double the rate at which millennials were buying solo at the same age.
35% of Gen Z buyers are single women, while 18% are single men. This makes Gen Z the generation with the highest rate of single female homeownership of any group.
Gen Z accounts for 4% of all homebuyers, up from 3% the previous year. While still a small share, their influence is growing rapidly.
Gen Z buyers have an average household income of $76,000 and are financially savvy. They often take advantage of down payment assistance programs (DPAPs) at higher rates than other generations.
Millennials: Carrying the First-Time Buyer Load (But Struggling)
Millennials (ages 27–45) make up 26% of all homebuyers, down from 29% the previous year. They’re the largest group of first-time buyers, but many are struggling with affordability and competition.
41% of millennial buyers are single, up from 38% the previous year. This reflects the broader trend of delayed marriage and a preference for independence.
Millennials have an average household income of $105,000. They’re more likely to buy in suburban areas and prioritize space and affordability.
Gen X and Baby Boomers: Still Active but Shifting Priorities
Gen X (ages 46–59) make up 24% of all homebuyers. They’re often repeat buyers looking for larger homes or investment properties.
Baby boomers (ages 60–78) make up 22% of all homebuyers. They’re more likely to buy in rural areas and prioritize retirement-friendly features.
How Sioux Falls Is Adapting to Single Homebuyers
Sioux Falls is uniquely positioned to attract single homebuyers, particularly among Gen Z and millennials. Here’s how the local market is adapting to this growing demographic:
Affordability and Opportunity
Sioux Falls is one of the most affordable housing markets in the country. The median home price in Sioux Falls is currently around $350,000. This is significantly lower than the national median home price of $420,000.
This affordability makes it easier for single buyers to enter the market and find a home that fits their budget. Additionally, Sioux Falls’ strong job market and low cost of living make it an attractive destination for young professionals.
Inventory and Diversity
Sioux Falls offers a diverse range of housing options that appeal to single buyers. This includes condos, townhomes, and smaller single-family homes in desirable neighborhoods.
Downtown Sioux Falls has a growing number of modern condos and townhomes that appeal to single professionals. These properties often feature low-maintenance living, amenities like fitness centers and rooftop decks, and proximity to downtown attractions.
Community and Lifestyle
Sioux Falls is known for its strong sense of community and high quality of life. For single buyers, this means access to a variety of social and recreational opportunities, as well as a supportive network of neighbors and friends.
The city offers a range of activities and events that cater to young professionals, from networking groups to outdoor festivals. Additionally, Sioux Falls’ safe and welcoming environment makes it an ideal place for single buyers to put down roots.
Challenges and Solutions for Single Buyers in Sioux Falls
While Sioux Falls offers many advantages for single buyers, there are also challenges to consider. Here are some of the top challenges and solutions for single buyers in the local market:
Financing
Single buyers often face unique financing challenges, such as lower household incomes and limited savings for a down payment. However, there are several solutions available:
Down Payment Assistance Programs
The South Dakota Housing Development Authority (SDHDA) offers a variety of down payment assistance programs for first-time homebuyers. These programs can provide grants or low-interest loans to help cover the cost of a down payment.
Seller Concessions
Sellers may be willing to offer concessions to help single buyers afford their home. This could include covering closing costs, offering a home warranty, or providing a credit for repairs or updates.
Competition
Single buyers may face competition from other buyers, particularly in desirable neighborhoods or for affordable properties. However, there are several strategies to improve your chances of success:
Pre-Approval
Getting pre-approved for a mortgage can help you stand out as a serious buyer and give you an edge in competitive situations. It also helps you understand your budget and narrow down your search to homes you can afford.
Flexible Closing Timelines
Being flexible with your closing timeline can make your offer more appealing to sellers. This could mean accommodating their preferred closing date or offering a longer closing period to give them more time to move.
Limited Inventory
While Sioux Falls has a diverse range of housing options, inventory can still be limited in certain price ranges or neighborhoods. However, there are several strategies to expand your options:
New Construction
Consider looking at new construction homes, which can offer more customization options and modern features. Additionally, new construction homes may have less competition and more flexibility in terms of financing and closing timelines.
Condos and Townhomes
Condos and townhomes can be a great option for single buyers, offering low-maintenance living and amenities like fitness centers and pools. Additionally, they may be more affordable than single-family homes and offer a sense of community.
How BHGRE® Beyond Can Help Single Buyers and Sellers
At BHGRE® Beyond, we’re committed to helping all buyers and sellers navigate the Sioux Falls real estate market with confidence. Whether you’re a single buyer looking for your first home or a seller hoping to attract this growing demographic, our local expertise and personalized approach can help you achieve your real estate goals.
For Single Buyers
Local Expertise
Our agents have a deep understanding of the Sioux Falls market and can help you find homes that meet your criteria and fit your budget. We provide access to the latest listings and market data, so you can make informed decisions.
Financing Guidance
We can connect you with trusted lenders and provide guidance on financing options, including down payment assistance programs and other resources for single buyers.
Negotiation Support
Our agents can help you craft competitive offers and negotiate with sellers to secure the best possible deal. We can also provide guidance on seller concessions and other strategies to make your offer more appealing.
For Sellers
Targeted Marketing
Our agents can help you stage your home to highlight its best features and appeal to single buyers. We use a variety of marketing channels to reach the widest possible audience, including high-quality photos, virtual tours, and detailed descriptions.
Pricing Strategy
We use local and national data to price your home competitively and attract the right buyers. Our agents can provide guidance on property selection, financing, and management.
Flexible Negotiation
Our agents can help you negotiate with single buyers to find a mutually beneficial agreement. This could include offering seller concessions, flexible closing timelines, or other incentives to appeal to this growing demographic.
The Future of Single Homebuyers in Sioux Falls
The rise of single homebuyers—particularly among Gen Z and millennials—is a trend that’s here to stay. As affordability improves, inventory rises, and remote work continues to reshape where and how we live, Sioux Falls is well-positioned to attract more single buyers in the years ahead.
For buyers, this means more opportunities to enter the market and find a home that fits your lifestyle and budget. For sellers, it means adapting your strategy to appeal to this growing demographic. And for investors, it means focusing on properties that meet the needs of single buyers, such as condos, townhomes, and smaller single-family homes in desirable neighborhoods.
At BHGRE® Beyond, we’re committed to helping all buyers and sellers navigate these shifts with confidence. Whether you’re a single buyer looking for your first home or a seller hoping to attract this growing demographic, our local expertise and personalized approach can help you achieve your real estate goals.
