The twin state to the south of its northern cousin, South Dakota is home to the famous carving at Mount Rushmore, the Crazy Horse Memorial, and the sweeping badlands and granite peaks of the Black Hills. Custer State Park, one of the nation's largest state parks, is known for its free-roaming bison herds and scenic drives. South Dakota, like many of the plains states, is well known for its natural beauty and geology as well as for its agriculture, particularly ranching. The state is also a famous site for fossil-hunting, having produced dinosaur remains now displayed in museums around the world. Agriculture and tourism are two of the state's major industries, alongside a substantial financial-services sector and growing healthcare and manufacturing employers. For those who want to live in the country and enjoy vast, open land, South Dakota makes a great destination.
With a total area of roughly 77,000 square miles, the Mount Rushmore State is larger than the average state by land area. As of 2025, however, fewer than a million people call it home, and its population ranks 46th in the nation. South Dakota has one of the smaller state economies, anchored by farming, ranching, tourism, and a notable concentration of financial-services jobs. Household incomes are roughly in line with national averages.
The Cities of South Dakota
As of 2025, the typical South Dakota home is valued at roughly $320,000, according to the Zillow Home Value Index, with prices having risen substantially over the past decade. Values vary by market and change over time, so treat any single figure as a snapshot. In a smaller state like South Dakota, there is less transaction data, which can make local averages a bit less stable from month to month. Most of the state's population is concentrated in and around its two largest metro areas.
Sioux Falls
Sioux Falls is South Dakota's largest city, with an estimated population of around 225,000 as of 2025, and its metropolitan area is home to more than 300,000 people - over a third of the state's residents. The metro has grown quickly in recent years. The city's growth is often traced to the arrival of Citibank's credit-card operations in the early 1980s, which helped seed a large financial-services industry. Other major employers include Wells Fargo and the Sanford Health and Avera Health hospital systems.
Rapid City
Rapid City is the state's second-largest city, with a population of roughly 87,000 as of 2025. As the gateway to the Black Hills and Mount Rushmore, its economy leans heavily on tourism, along with healthcare, government, and nearby Ellsworth Air Force Base.
Financial Institutions
Over the past several decades, Sioux Falls has grown into a regional financial-services hub. That growth has given consumers a wide range of choices, from locally rooted community lenders to large national banks. Community banks and credit unions are chartered to serve specific communities and often have deep ties to the towns and neighborhoods they operate in. National banks are the larger, familiar names with branches across many states. The institutions below are examples of lenders operating in South Dakota; availability of specific products varies by institution.
Community and regional banks:
- Dacotah Bank
- First Bank & Trust
- CorTrust Bank
- BankWest
- Reliabank Dakota
- Pioneer Bank & Trust
- BankStar Financial
Credit unions:
- Black Hills Federal Credit Union
- Dakotaland Federal Credit Union
- Levo Credit Union (formerly Sioux Falls Federal Credit Union)
- Voyage Federal Credit Union
- Highmark Federal Credit Union
- Service First Federal Credit Union
National banks:
- Wells Fargo
- U.S. Bank
- First Interstate Bank
- Citibank
Residents of South Dakota have plenty of options, but it's important to shop around before making a major financial decision. Using RateZip.com, you can compare offers on mortgages, auto loans, CDs, and other products in one place.
SD Home Buying Advice
If you're considering a move to South Dakota, RateZip.com can help by providing home buyers with regional rate comparisons for loans offered by both community lenders and national players. This is also a great place to compare refinance rates and request quotes.
First-time buyers should also look at the South Dakota Housing Development Authority (branded South Dakota Housing, or SD Housing), the state's housing finance agency. Through participating lenders, SD Housing offers 30-year fixed-rate mortgages and down-payment and closing-cost assistance for eligible borrowers who meet income and purchase-price limits. Eligibility rules and limits change over time, so confirm the current details before applying.
A common home loan in South Dakota is the fixed-rate mortgage (FRM). With these loans, the interest rate and monthly principal-and-interest payment stay the same for the life of the loan, which makes budgeting predictable. Fixed-rate loans are popular with buyers who value payment stability.
Another option is the adjustable-rate mortgage (ARM), where the rate can change over time. An ARM typically starts with a fixed interest rate for an initial period, after which the rate adjusts periodically based on an agreed-upon index. ARMs can carry a lower initial rate than a comparable fixed-rate loan, but payments may rise once the introductory period ends. Because mortgage rates move constantly, check current rates on RateZip.com and compare loan types before deciding what fits your situation.