Is Sioux Falls, SD Affordable? A 2025 Cost of Living Breakdown

Imagine a city brimming with opportunity, friendly faces, and a vibrant community, all while offering a refreshing approach to your budget. That's the dream many envision when considering a move, and for good reason! We understand that finding the perfect place to call home goes far beyond charming neighborhoods and beautiful properties; it's also about finding a life that truly fits your financial picture.

So, let's explore a question on many minds: Is Sioux Falls, South Dakota, affordable in 2025? The short answer is generally, yes! Sioux Falls consistently ranks as a city where your dollar stretches further, particularly when compared to larger metropolitan areas across the United States. This growing Midwestern gem offers a compelling blend of economic opportunity and a manageable cost of living, making it an attractive destination for families, young professionals, and retirees alike.

We're here to give you a clear, detailed breakdown of what you can expect when budgeting for life in Sioux Falls, helping you envision the unlimited potential and future a home here holds.

AARP Livability Index™: A Holistic View of Life in Sioux Falls

While traditional cost of living indexes focus purely on financial expenditures, we believe a truly "affordable" life encompasses more than just dollars and cents. It's about the quality of life, the access to resources, and the overall well-being a community offers. That's why we're also looking at Sioux Falls through the lens of the AARP Livability Index™, a powerful tool that measures how well a community supports its residents across various dimensions, making it a wonderful resource for anyone envisioning a future here.

The AARP Livability Index™ scores communities on a scale of 0 to 100, with higher scores indicating greater livability across seven key categories, designed to help people of all ages thrive. For Sioux Falls, South Dakota, the index paints a very positive picture, especially for those considering a long-term home.

Sioux Falls' Overall Livability Score: 63

With an overall Livability Score of 63, Sioux Falls proudly sits in the top half of communities in the U.S. This is notably higher than the national average city score of 48, underscoring a harmonious balance of financial accessibility and quality of life factors. It suggests that not only can your money go further here, but your life can be richer in experience and opportunity compared to many other places.

Let's break down the categories:

Diving Deeper: AARP Livability Categories

Understanding these scores helps paint a more complete picture of what life could be like in Sioux Falls, transcending mere financial numbers to embrace lifestyle and community aspects.

Housing (Score: 59)

The AARP Livability Index™ reinforces what we've seen with traditional cost of living data: housing in Sioux Falls is a definite strength. With a score of 59, it stands slightly above the national median of 56. This highlights factors like housing affordability and access. The report notes that while housing costs (around $1,225 per month) have increased, the housing cost burden (14.3% of income spent on housing) has actually improved, indicating a sustainable environment for residents to secure their homes. This category emphasizes the ability to find a home that not only fits your budget but also offers the space and accessibility you desire, whether that's a cozy apartment or a spacious house.

Neighborhood (Score: 55)

A good neighborhood is the heart of a home, and Sioux Falls scores 55 here, placing it well above the national median of 36. This reflects a community with reasonable proximity to essential amenities like grocery stores and parks. The index indicates strong access to these daily conveniences, ensuring that your errands and leisure activities are often just a short distance away.

Transportation (Score: 67)

Sioux Falls truly excels in the Transportation category with a robust score of 67, placing it significantly above the national median of 44. This high score is a testament to the city's focus on safety and convenience for getting around. The report indicates that Sioux Falls is among the top third of communities for walkability. The excellent ADA-accessible transit options (92.6% of stations and vehicles are accessible) suggest a conscious effort to make transportation inclusive for all. Short commute times also mean more time for what truly matters to you.

Environment (Score: 63)

Breathing easy and having access to clean resources is fundamental to well-being, and Sioux Falls earns a solid 63 in the Environment category, beating the national median of 59. The index highlights excellent drinking water quality and improving regional air quality. This signifies a community that values and actively works towards maintaining a healthy natural setting for its residents.

Health (Score: 62)

The city's commitment to health is evident with a score of 62, well above the national median of 43. Sioux Falls provides good access to exercise opportunities (89.4% of people have access), encouraging an active lifestyle. Hospitals and medical facilities maintain 80% patient satisfaction in the area, placing Sioux Falls in the top third of communities for patient satisfaction.

Engagement (Score: 65)

Feeling connected to your community is vital, and Sioux Falls' score of 65 in Engagement speaks to its vibrant social fabric, significantly higher than the national median of 47. The index proudly highlights significant improvements in broadband cost and speed, with 93.2% of residents enjoying high-speed, competitively-priced service. This fosters connectivity and participation in the digital age. Civic and social involvement are among the highest in the nation.

Opportunity (Score: 69)

With the highest category score at 69, Opportunity shines brightly in Sioux Falls, exceeding the national median of 52. This reflects a city where residents can build a prosperous future. The index shows a commendable trend of improving high school graduation rates, underscoring the community's investment in education. While the jobs-per-worker metric has marginally declined, our measure still significantly beats the national median. The overall picture indicates a place with a strong economic foundation and avenues for personal and professional growth.

What are taxes like in Sioux Falls, SD?

One of South Dakota's most significant financial advantages is the absence of a state income tax. This means more of your hard-earned money stays in your pocket!

• Sales Tax: The statewide sales tax is 4.2%, with an additional 2% city sales tax in Sioux Falls, totaling 6.2%.
• Property Tax: Property taxes are assessed locally and depend on the assessed value of your home. While not as low as states with no property tax, the absence of state income tax often balances this out favorably.

Salaries & Income: Balancing the Equation

Affordability isn't just about how much things cost; it's also about how much you earn. What is the average salary in Sioux Falls, SD? Sioux Falls has a robust and diverse economy, with thriving sectors in healthcare, finance, manufacturing, and technology.

• Median Household Income: The median household income in Sioux Falls is projected to be around $74,714, which is competitive with the national median and, when combined with the lower cost of living, provides significant purchasing power.
• Job Market: The city consistently boasts a low unemployment rate (less than half the national average) and a growing job market, offering ample opportunities for career growth.

Is Sioux Falls Truly Affordable for YOU?

While the data overwhelmingly points to Sioux Falls as an affordable place to live, "affordable" is ultimately a personal metric. Your individual lifestyle, income, and financial goals will shape your personal experience. However, the comprehensive data suggests that for many, life in Sioux Falls allows for a comfortable lifestyle, greater savings, and the opportunity to achieve homeownership dreams that might be out of reach in other parts of the country.

Imagine having more disposable income to explore the city's burgeoning arts scene, enjoy its beautiful parks, or save for your future. Sioux Falls presents a charming, approachable, and financially savvy path to a fulfilling life.

Our Perspective: Making Sioux Falls Your Home

At Better Homes and Gardens Real Estate Beyond, we see more than just houses; we see homes filled with potential, memories, and dreams. Sioux Falls, with its exceptional affordability and vibrant community, is a place where those dreams can truly take root and flourish.

If you're envisioning a life where your home is not just an address but a cornerstone of your financial well-being and lifestyle aspirations, Sioux Falls offers a compelling narrative. We're here to guide you through every step of exploring this incredible city, connecting you with properties that don't just fit your budget but also capture your heart.

Ready to explore the possibilities and find your place in Sioux Falls, SD? Get started with your search or get connected with one of our agents.