Cost to Build a House in South Dakota in 2024

In South Dakota, on average the cost of building a new house is $102 per square foot. So a 2,000 square foot home would cost around $204,000. Total budget ranges from $240,000 to $300,000 depending on factors like location, property type, labor, materials. Timeline to build a custom single-family residence is 9-12 months spanning design, approvals, construction, and interior finish work. Costs can vary but this provides an estimate for budgeting to construct a new home.

Key Takeaways

  • Average cost per square foot is $102
  • The cost typically ranges from $80 to $150 per square foot. 
  • Cost to build a 2,000 sq ft home is $204,000
  • Total budget ranges from $240,000 to $300,000
  • Timeline is 9-12 months

The Average Cost Building a Home in South Dakota

The average cost of building a new home in South Dakota is $204,420 based on typical construction costs of $102.21 per square foot for a 2,000 square foot home. The overall cost of building a custom residence ranges from $250,000 on the low end to $340,000 on the high end depending on location, property type, labor, materials and other variables. Total cost includes land purchase, construction, fees, financing charges, and contingency funds for unexpected expenses.

Also read: Cost to Build a House in North Dakota: Complete Guide

Average Cost Based On Square Footage in South Dakota

Square FootageAverage Cost Ranges
500 sq ft$51,000 – $75,000
1000 sq ft$102,000 – $150,000
1500 sq ft$153,000 – $225,000
2000 sq ft$204,000 – $300,000
2500 sq ft$255,000 – $375,000
3000 sq ft$306,000 – $450,000
3500 sq ft$357,000 – $525,000
4000 sq ft$408,000 – $600,000
4500 sq ft$459,000 – $675,000
5000 sq ft$510,000 – $750,000

The Average Cost to Build a House Across The US State

South Dakota$204,420
South Carolina$301,840
Rhode Island$338,180
North Dakota$212,500
New York$360,180
New Mexico$290,940
New Hampshire$299,900
North Carolina$301,500

Also read: Cost to Build a House in New York: Total Calculation

Breakdown of Costs to Build a House in South Dakota

When calculating the total cost to construct a new home, there are both fixed and variable expenses to account for. Here is an overview of the different costs that comprise the total price tag.

Land Acquisition Costs

Purchasing land for home construction represents one of the biggest fixed costs. Raw land prices can vary drastically depending on the location within South Dakota. In Sioux Falls, an acre of land suited for a single residential property may cost $30,000 to $60,000. In more rural areas, land could cost as little as $2,000 per acre. Plan on allocating $15,000 to $100,000 for a home site.

Construction Costs

This umbrella category covers all direct expenses related to building the home. It typically accounts for 50-60% of total costs. This includes:

  • Materials – Lumber, concrete, windows, fixtures, roofing, etc. Making up ~15%
  • Labor – Payment to the construction crew and contractors. Around 35%.
  • Permits & Surveys – Includes fees for land surveys, impact studies, permits, inspections and any utilities connections. Approximately 5%.

For a 2,500 square foot home, estimate $150,000 to $200,000 in total construction expenses.

Contractor & Architect Fees

Unless you plan to act as your own General Contractor, you will need to pay a professional contractor to oversee and manage the home building process. This typically costs 10-20% of total construction costs. Architects also charge 5-15% to draft design plans. For a $180,000 construction budget, you may pay $18,000 to $36,000 in contractor fees and $9,000 to $27,000 for an architect.

Financing Costs

Very few homeowners pay 100% cash when building a home. Expect to pay some amount of interest depending on your construction loan or mortgage. Locking in loan rates early can help minimize finance charges. Budget for a 10-20% down payment. Talk to a lender to forecast total interest and loan costs.


It is wise to pad the total budget by 10-20% for unforeseen expenses. This contingency cushion can absorb unexpected costs for issues like:

  • Design additions
  • Changes to allowances
  • Rising material prices
  • Permit delays
  • Increased labor costs
  • Weather delays

Having contingency funds eliminates unwanted surprises that could halt completion.

Also read: Cost to Build a House in New Mexico: A Ultimate Guide

Factors That Impact the Cost to Build a House in South Dakota

Multiple variables influence the overall expense when undertaking a new home build. Being aware of these cost drivers can help you accurately budget and set expectations.

Location & Property

Where you choose to build and the attributes of the land significantly sway cost:

  • Rural vs Urban – More remote locations are generally more affordable
  • Lot Size – Larger parcels get more favorable rates per square foot
  • Topography – Steep grades or poor soils add foundation expenses
  • Utilities Access – Available vs installing new lines and hookup fees
  • Surveys & Permits – Varies by city and county jurisdictions

Size & Design

Decisions about the home’s size, layout and features have a big cost impact:

  • Square Footage – Bigger homes cost more overall
  • Home Plans – Unique designs are pricier than stock plans
  • Customization – More complex homes have higher price tags
  • Luxury Features – Premium finishes, high-end appliances

Materials & Finish Level

Upgrades to fixtures, finishes and quality of building materials affects budgets:

  • Grade of Fixtures – Entry level vs premium faucets, lights, hardware
  • Countertops – Laminate, granite, quartz, marble and more
  • Flooring – Carpet, hardwood, tile, vinyl and other options
  • Cabinets – Stock, semi-custom or fully custom cabinets
  • Windows & Doors – Basic, mid-range or high-end brands
  • Roofing – Asphalt, metal, slate, cedar shake options

How to Lower the Cost to Build a House in South Dakota

If your budget is tight, here are some smart ways to reduce the overall cost of construction without sacrificing quality:

  • Opt for a simple rectangular shape and single-story design
  • Build further outside cities in more rural locations
  • Work with stock home plans rather than custom designs
  • Size HVAC systems appropriately without oversizing capacity
  • Install mid-range or stock grade cabinets, fixtures and flooring
  • Use lesser expensive siding like vinyl or fiber cement instead of brick, stucco or stone
  • Frame roof with affordable trusses rather than pricey stick framing
  • Get quotes from several contractors to compare rates

Making some strategic design choices and shopping contractors can help slash tens of thousands off the final price tag.

Timeline for Building a House in South Dakota

  • Planning & Design: Finalize budget, select home site, choose house plans, begin permit process (1-3 months)
  • Pre-Construction: Clear land, survey property, secure financing, pull permits (1-2 months)
  • Site Work: Excavate, pour concrete, backfill and compact soil (1-2 months)
  • Framing: Build structural skeleton including floors, walls and roof (1 month)
  • Exterior Finishing: Windows, doors, siding, roofing, paint, porches & decks (1-2 months)
  • Interior Finishing: Insulate, install systems, hang drywall, paint, trim work (2-3 months)
  • Landscaping & Site Work: Plantings, driveway, outbuildings, debris clean up (1 month)
  • Inspections & Documents: Final inspections, certificate of occupancy (1 month)

Financing Your South Dakota Home Build

  • Construction Loans – Offer periodic payouts to the builder during each phase. Convert to a fixed-rate mortgage after completion.
  • USDA Loans – 100% financing with low/no down payment for properties in designated rural areas.
  • VA Loans – 100% financing with no PMI for qualifying veterans and service members.
  • Conventional Loans – Typically require 10-20% down payment. Fixed or adjustable rates available.
  • Cash – Paying for portions of the build in cash saves significantly on finance fees/interest.

Benefits of Building Your Own Home in South Dakota

  • Customise the Design – Craft the ideal layout with the features, finishes, and aesthetics you desire.
  • Build Equity & Savings – Enjoy immediate equity growth as the home value exceeds construction costs.
  • Energy Efficient Features – Incorporate high efficiency HVAC, appliances, windows and insulation from the start.
  • Potential Tax Incentives – Qualify for property and/or sales tax deductions in many South Dakota municipalities.
  • Flexible Payment Options – Choose from various construction loans/financing plans to fit your budget.
  • Pride of Ownership – Feel deeply invested in a home you personalised during the methodical planning stages.
  • Warranties & Protection – Builders deliver a high standard of structural craftsmanship and product guarantees.
  • Location Flexibility – Find affordable land and construct anywhere not limited to existing outdated housing stock.

With strategic planning, building your own new construction home in South Dakota offers stability, comfort, and long-term returns on investment.

Building vs. Buying a House: Key Differences 

Constructing a new custom built home takes more upfront effort, but provides benefits like personalization and equity growth. You manage the home building process from initial design stages through completion while making all finishes and component selections. This flexibility results in a home catered specifically to your lifestyle needs and aesthetic tastes. However, new construction requires more patience as the 9-12 month timeline unfolds before you can move in.

Purchasing an existing house offers immediate move-in readiness once the transaction closes. However, tradeoffs come with inheriting prior owners’ layouts and style choices that likely don’t fully suit your preferences. Buying also limits you strictly to current housing inventory in your target location. While construction takes more legwork early on through planning phases, the advantage of building from the ground up makes it a sound long-term investment that yields returns for years to come in a home that fully reflects your vision.

Is It Cheaper to Build a House in South Carolina

Yes, it is cheaper to build a house in South Carolina due to the lower cost of living, ample land availability, modest property taxes, mild climate, competitive construction market, and incentives in some counties. These factors combine to make constructing a custom home very affordable compared to other regions of the country. Strategic planning and budgeting allows you to capitalize on the inherent cost savings unique to building in South Carolina.


Building a custom home in South Dakota costs around $102 per square foot on average. So constructing a 2,000 square foot residence would run about $204,000. With land acquisition, fees, financing and contingencies, plan on a total budget between $240,000 to $300,000.

Key factors that determine the ultimate expense include the location, size, design, materials and level of customization. More complex homes with premium finishes located in popular area codes will sit at the top end of the price spectrum. On the flip side, smaller footprint production type homes in rural places can hit the lower budget targets.

Frequently Asked Questions (FAQ)

What is the average cost of a home in South Dakota?

The average cost to build a home in South Dakota is about $102 per square foot. So a 2,000 square foot home would cost roughly $204,000 to construct. With land, fees, financing, etc., expect a total budget between $240,000 to $300,000.

How much does it cost to build a 1500 square foot house in South Carolina?

The costs provided are for building homes in South Dakota, not South Carolina. In South Dakota, a 1,500 square foot home would likely range from $175,000 to $225,000 to construct based on finishes and features included.

How much does it cost to build a 2000 square foot house in South Carolina?

Again, the costs listed are for South Dakota. To build a 2,000 square foot home in South Dakota, total budget would be $240,000 to $300,000 on average based on various build specifications.

How much does it cost to build a 3000 square foot house in South Carolina?

For South Dakota specifically, a 3,000 square foot custom home would run approximately $325,000 to $400,000 to build new. This takes into account materials, labor, permitting, architecture fees, and contingencies.

What is the cheapest state to build a house in?

Some of the most affordable states to build a home based on construction costs per square foot include: Mississippi, Alabama, Tennessee, Arkansas, and Oklahoma. Building costs tend to be lower in states with lower costs of living.

Is it cheaper to live in South Dakota?

Yes, South Dakota is more affordable than most states for housing and cost of living. Lower home prices, property taxes, utility costs, and lacking state income tax allow for savings over other places in the U.S.

What is the most expensive part of building a house?

The land purchase itself along with labor costs for construction crews make up the most expensive components of building a new custom home. Materials, permitting, financing, and contractor fees are also major cost factors that contribute to the total budget.


Razib is a skilled writer with 5 years of experience specializing in technology, finance, automotive and real estate. A BBA graduate from 2014, Razib's passion for these industries shines through in his informative and engaging content. His ability to break down complex topics and stay current on the latest trends makes him a valuable resource for readers seeking to understand these dynamic fields.

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