Cost of Living Rises Modestly in South Dakota, Remains Among Most Affordable States

South Dakota continues to rank among the more affordable states in the nation, even as the income needed to cover basic living expenses rose slightly over the past year. New data shows that a single adult in South Dakota now needs an annual income of $82,160 in 2025, up from $81,453 in 2024—an increase of 0.87 percent. For a family of four, the required income climbed to $197,932.80, compared to $192,608 the previous year, marking a 2.76 percent increase. Despite these increases, South Dakota ranks 45th in the nation for income required for a four-person family, indicating that it remains one of the more affordable places to live in the United States. Lower rankings in this category reflect lower costs of living relative to other states. Economists note that while costs are rising, the pace of growth in South Dakota remains relatively modest compared to many other parts of the country. The smaller increase for single adults suggests some stability in individual living expenses, while families are seeing slightly higher pressure from rising costs such as housing, childcare, and food. Overall, South Dakota’s combination of moderate cost increases and relatively low income requirements continues to make it an attractive option for individuals and families seeking affordability without sacrificing economic opportunity.