Sioux Falls, South Dakota Housing Market

How much can you negotiate in Sioux Falls?

Only 53 out of every 100 homes for sale have found a buyer. The other 47 are still waiting. Your offer may be the only one on the table. Few sellers are dropping their price. Asking prices are holding firm. Your discount will come from one stale listing, not from the whole market.

A typical Sioux Falls home takes 44 days to find a buyer. Half of them take even longer. That is 7% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago. There are 864 homes for sale in Sioux Falls. That is 1.8 times the tightest month on record, but below the peak of 1,110. Supply is growing against last year.

What to do about it

• Start in 57107, 57108, and 57104. Those are the three softest ZIP codes in Sioux Falls.
• Filter for homes listed 60+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 57107 only 44 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in Sioux Falls?

Asking prices are 9.6% below their Jul 2024 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Sioux Falls prices have risen in 95 of the last 108 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in Sioux Falls?

In Sioux Falls, 40 out of every 100 households rent. Most own their home. The renter share is growing. Five years ago it was 38 in 100. Sioux Falls added about 6,200 renter households in five years. Renter households average 1.9 people. Singles and couples rent here. Two bedrooms beat four.

Households grew 18% in five years. The housing stock grew 16%. Demand is outrunning supply. Just 4.7% of homes sit empty. A well-priced rental fills fast here.

The median Sioux Falls household earns $78,349 a year. Incomes here have grown 4.2% a year since 2019. Incomes and home prices are rising in step. A typical home costs 4.6 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. A tenant on the median income can pay about $1,959 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

That is the market, not your address. Run an address through the app to see its rent estimate and cash flow.

What numbers should you underwrite a Sioux Falls deal with?

• Price growth to assume — +5.2%/yr. Sioux Falls has grown about 5.2% a year for five years and for ten. That is a durable trend, not a boom artifact. It is a fair long-run input. Prices fell 2.5% over the last year. That is a timing signal, not a trend.
• Months of carrying cost — 2. A typical home takes 44 days to sell. Budget that long when you exit or refinance. It is 7% slower than a year ago.
• Odds you cut your price to sell — 1 in 8. About 12% of homes on the Sioux Falls market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $205/sqft. The typical Sioux Falls listing shrank from 1,975 to 1,769 sqft since Jul 2016. So median price hides real growth: 70% per sqft versus 53% on the median. Comp on median price and you will overpay for small homes.
• Competition when you exit — +6%. That is how much the number of homes for sale grew in a year. Your resale will face a bigger crowd than today's comps did.
• Price-to-income ratio — 4.6×. A typical home costs 4.6 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. Incomes and home prices are rising in step.
• Tenant rent ceiling — $1,959/mo. 30% of the median household income of $78,349. Rents above this line shrink your tenant pool fast.

Is Sioux Falls a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in Sioux Falls right now. 53 out of every 100 homes for sale have a buyer, 12% of sellers have cut their price, and a typical home takes 44 days to sell.

Are Sioux Falls home prices going up or down?

Asking prices are 9.6% below their Jul 2024 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for Sioux Falls?

Assume +5.2% a year. Sioux Falls has grown about 5.2% a year for five years and for ten. That is a durable trend, not a boom artifact. It is a fair long-run input. Prices fell 2.5% over the last year. That is a timing signal, not a trend.

How fast are homes selling in Sioux Falls?

A typical Sioux Falls home takes 44 days to find a buyer. Half of them take even longer. That is 7% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago.

Is Sioux Falls a renters' market or an owners' market?

In Sioux Falls, 40 out of every 100 households rent. Most own their home. The renter share is growing. Five years ago it was 38 in 100. Just 4.7% of homes sit empty. A well-priced rental fills fast here.

What rent can Sioux Falls tenants afford?

A tenant on the median income can pay about $1,959 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Sioux Falls household earns $78,349 a year.

Which Sioux Falls ZIP code has the most negotiating room?

57107. Only 44 out of 100 homes there have a buyer. 16% of sellers there have cut their price, and a typical home takes 43 days to sell.