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Home » Buy » How to Build a House in South Dakota

How to Build a House in South Dakota

Image of the famous monument Mount Rushmore featuring the four presidents, George Washington, Thomas Jefferson, Theodore Roosevelt and Abraham Lincoln, carved into the mountainside.

So, you’re ready to move to the Mount Rushmore State? South Dakota is an easy-going and affordable state that’s perfect for outdoor adventures. From the Black Hills to the Badlands, South Dakota has everything you need to build your dream home.

Counting the costs

According to Forbes, it costs on average $204,420 to build a new home in South Dakota. This gives South Dakota the tenth lowest average cost to build a new home in the U.S.

Custom vs Production Homes

When you consider building a new home, it’s important to decide early on if you want a custom or production home. Custom homes are exactly that, fully custom. Having the luxury of designing every piece of your new home will be reflected in the cost – it is going to go up. On the other hand, production homes are great options for those who want the custom feel without the custom price tag.

Production homes are built by select homebuilders who have certain floor plans and layouts with limited personalization options. This is a much simpler process than designing a fully custom home.

Labor, Materials, and Lot

There are many costs that come with building a new home, but the labor, materials, and lot make up a large part of it. Labor specifically is a big chunk of the pie; it amounts to about 20 to 40 percent of total construction costs.

Materials can devour 40 to 50 percent of the total costs. These percentages do not include the cost of the lot. Luckily, there are plenty of lots available at various price points in South Dakota. The price of the lot will also vary depending on the city’s cost of living.

General Timeline

family getting ready for new home construction

From start to finish, all homes follow a certain order and construction timeline. In the West, the average construction time for a new home is around 7.1 months.

Purchase the Lot

Purchasing your dream lot is a huge step in the homebuilding journey. From gorgeous prairies, farmland, and even glacial lakes, it can be difficult to decide where to live. The time it takes to build your home also depends on how long it takes to clear your lot. For example, if you want to live in the mountainous western regions of South Dakota or the southwestern Badlands, it might take longer to clear and prepare a lot that is on a steep, rocky incline.

Find a Homebuilder

Your homebuilder is arguably the most important step of this process. This will be the person who will guide the construction of your home in an efficient manner and keep your investment safe. So, you’ll want to find someone who is reputable and makes you feel comfortable. There are also helpful websites you can use to find a builder that you trust, like TrustBuilder. TrustBuilder gives you real reviews from real homebuyers about homebuilders across the country.

Permits and Paperwork

Most of this will be handled by your homebuilder but you should be knowledgeable about what you are asked to sign. For example, you will need to apply for a building permit.

The application will ask you to provide basic information about your home, such as the proposed plan and the contractors. Your builder will also help you through this process and keep you informed of all the paperwork and permits you will need.

Prepare the Site

In Sioux Falls, it costs about $2,500 to $4,100 to clear a one-acre lot. After your lot is cleared, contractors can start preparing and laying the foundation. The type of foundation for your home, along with the materials, will depend on the environment.

Build the Home

Now for the fun part, building the home! The homebuilding process is comprised of many detailed steps. In Sioux Falls, the cost to build a new home ranges from $90 to $120 per square foot, and is dependent on the home you are building and materials required.

Helpful Tips for Building in South Dakota

four kayakers on the missouri river in south dakota

How to Lower the Cost

Prices may rise if the home has multiple stories, a complex roof, high-end materials, and a challenging lot. However, the price drops if you build a single-story home, choose standard building materials, pick a flat lot without an irregular shape, and use a pre-designed plan (AKA a production home).

There are also resources to cut down on closing costs, as well as down payment assistance to lower the overall mortgage and monthly payments.

Affordable Cities and Retirement Locations

South Dakota is one of the most affordable states, making it perfect for building a new home. While beautiful and affordable, there are also plenty of affordable cities in South Dakota that will make the price tag on your newly built home more affordable. Looking to build and you are in your retirement years? Don’t worry, South Dakota also has stunning cities that are ideal locations for retirees.

Build Your South Dakota Home

downtown area of rapid city, south dakota

South Dakota boasts beautiful mountains, rolling prairies, and all the incentives a new homeowner could possibly want. From the historic Mount Rushmore National Monument to the Badlands National Park, South Dakota is perfect for nature lovers. Don’t wait, build your new South Dakota home today!

Get our FREE guide on how the home construction process works

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