A recent report featured in USA Today, drawing data primarily from the U.S. Census and Zillow, has identified Sioux Falls as one of the leading cities for renters in 2024.
Ranked third overall, Sioux Falls trails behind Cary, North Carolina, and Overland Park, Kansas. Notably, Sioux Falls boasts a lower average rent compared to its higher-ranked counterparts, sitting at $1,170. The research, conducted by USA Today, scrutinized 315 of the nation’s most densely populated cities to determine which offered renters the most favorable conditions for their quality of life at the best cost. Here’s how Sioux Falls fared among the top three.
According to Caroline Jones, who contributed to the study’s public relations efforts, the key factors in determining a city’s rental appeal included the percentage of renters who were rent-burdened, i.e., the disposable income left after paying rent, and the availability of vacant rentals in the area. Notably, Sioux Falls witnessed a 5.6% increase in vacant rentals since July, as reported by the South Dakota Multi-Housing Association.
“This presents a significant opportunity for individuals considering a move to Sioux Falls. While home sales may not be as brisk, there’s a plethora of options available for prospective renters,” Caroline emphasized.
Jodi Schwan, owner and publisher of Sioux Falls Dot Business, echoed these sentiments, asserting that with the ongoing construction of new apartments in Sioux Falls, concerns about an oversupply of rental spaces are unfounded.
“While we may see a slight uptick in vacancy rates later this year or next year, I don’t foresee it reaching crisis levels. In fact, we’re already witnessing some apartment builders scaling back due to the rising costs of construction,” Jodi elaborated. “As Sioux Falls continues to experience population growth, it’s an exciting time for the local rental market.”
To climb in the rankings, Caroline suggested that Sioux Falls would need to maintain an upward trend in vacant rental properties. Additionally, the study highlighted Sioux Falls as the fourth-ranked city for pet-friendliness, with half of the city’s rental properties allowing pets. Jodi emphasized that this was a crucial factor for many renters in the area.
