I’ve analyzed the Zillow Home Value Index data to identify the fastest-growing towns in South Dakota from 2016 to 2025. These 25 locations have demonstrated remarkable resilience and growth, outperforming many larger markets across the region.
What makes these findings particularly compelling is the consistency of appreciation across diverse communities – from tiny rural hamlets to tourism-driven mountain towns. South Dakota’s housing markets have delivered exceptional returns with surprisingly little volatility compared to national trends.
My analysis ranks each location by percentage growth over the nine-year period, providing detailed value histories and investment implications for both current owners and prospective buyers.
25. Viborg
- % change from 2016 to 2025: 97.29%
- Home value in 2016: $123,502
- Home value in 2017: $132,470
- Home value in 2018: $143,087
- Home value in 2019: $151,681
- Home value in 2020: $165,389
- Home value in 2021: $182,898
- Home value in 2022: $217,238
- Home value in 2023: $228,027
- Home value in 2024: $227,032
- Home value in 2025: $243,651
Viborg’s near-doubling of home values represents a $120,149 equity boost for longtime owners. The town’s steady appreciation curve suggests minimal risk of volatile corrections, making it an attractive entry point for investors seeking dependable long-term returns. Located in Turner County with a rich Scandinavian heritage, Viborg offers the financial stability of rural markets without the extreme peaks and valleys of metropolitan areas.
24. Valley Springs
- % change from 2016 to 2025: 99.47%
- Home value in 2016: $175,993
- Home value in 2017: $187,773
- Home value in 2018: $201,353
- Home value in 2019: $216,186
- Home value in 2020: $230,748
- Home value in 2021: $257,267
- Home value in 2022: $301,880
- Home value in 2023: $323,819
- Home value in 2024: $336,111
- Home value in 2025: $351,059
Valley Springs’ impressive $175,067 appreciation trajectory makes it a wealth-building powerhouse for property owners. Your investment here would have effectively doubled in just nine years, outpacing many traditional investment vehicles. The market shows remarkable resistance to downturns, with consistent year-over-year gains even during economic uncertainties. Positioned strategically near the Minnesota border, this community offers proximity to urban amenities while maintaining the financial advantages of South Dakota’s favorable tax environment.
23. Arlington
- % change from 2016 to 2025: 99.63%
- Home value in 2016: $89,719
- Home value in 2017: $92,042
- Home value in 2018: $94,365
- Home value in 2019: $105,337
- Home value in 2020: $117,560
- Home value in 2021: $124,981
- Home value in 2022: $145,016
- Home value in 2023: $152,664
- Home value in 2024: $166,087
- Home value in 2025: $179,105
Arlington’s housing market demonstrates exceptional value creation, with modest-priced homes nearly doubling to generate $89,386 in equity. The growth curve accelerated significantly after 2019, indicating a fundamental shift in market dynamics that savvy investors should note. For new buyers, the relatively low entry point compared to regional averages offers an attractive value proposition with strong upside potential. This eastern South Dakota community combines agricultural stability with emerging economic diversification to fuel its housing demand.
22. Frankfort
- % change from 2016 to 2025: 101.02%
- Home value in 2016: $99,789
- Home value in 2017: $102,606
- Home value in 2018: $105,326
- Home value in 2019: $118,477
- Home value in 2020: $130,384
- Home value in 2021: $148,576
- Home value in 2022: $173,555
- Home value in 2023: $176,260
- Home value in 2024: $172,098
- Home value in 2025: $200,596
Frankfort’s housing market has delivered remarkable 101% appreciation, doubling homeowner wealth with a $100,808 gain. The slight price dip in 2024 followed by strong 2025 recovery signals resilience and presents a strategic buying opportunity before the next appreciation cycle. Your investment here benefits from the perfect storm of limited housing inventory, solid local employment, and growing demand for small-town living. Nestled in Spink County, Frankfort’s affordable entry point makes it particularly attractive for first-time investors seeking maximum appreciation potential.
21. Alcester
- % change from 2016 to 2025: 101.33%
- Home value in 2016: $121,080
- Home value in 2017: $127,703
- Home value in 2018: $138,041
- Home value in 2019: $135,699
- Home value in 2020: $154,601
- Home value in 2021: $173,267
- Home value in 2022: $200,468
- Home value in 2023: $224,923
- Home value in 2024: $227,574
- Home value in 2025: $243,768
Alcester’s real estate market has generated $122,688 in wealth for homeowners, effectively doubling investments since 2016. The brief value dip in 2019 followed by accelerated growth demonstrates the market’s ability to quickly correct and surge forward, an indicator of underlying demand strength. Your timing for entry matters less than your commitment to hold, as even buyers during temporary plateaus have seen substantial returns. This southeastern community nestled near the Iowa border continues to benefit from its strategic location and comparatively affordable housing stock.
20. Parker
- % change from 2016 to 2025: 101.75%
- Home value in 2016: $161,366
- Home value in 2017: $171,509
- Home value in 2018: $184,007
- Home value in 2019: $189,862
- Home value in 2020: $204,042
- Home value in 2021: $227,602
- Home value in 2022: $271,890
- Home value in 2023: $295,127
- Home value in 2024: $298,248
- Home value in 2025: $325,550
Parker’s housing market has delivered a remarkable $164,184 wealth boost to property owners since 2016. The particularly strong growth from 2021-2023 suggests the pandemic accelerated demand for this community, creating a new pricing baseline investors should recognize. Your capital would have doubled here while enjoying substantially less volatility than stock investments during the same period. This Turner County gem, positioned within commuting distance of Sioux Falls, combines rural charm with the financial advantages of proximity to urban amenities.
19. Flandreau
- % change from 2016 to 2025: 103.14%
- Home value in 2016: $96,979
- Home value in 2017: $102,123
- Home value in 2018: $110,335
- Home value in 2019: $118,666
- Home value in 2020: $126,001
- Home value in 2021: $141,773
- Home value in 2022: $170,512
- Home value in 2023: $181,175
- Home value in 2024: $184,641
- Home value in 2025: $197,005
Flandreau’s housing appreciation has transformed modest-priced homes into significant wealth generators, with a 103% increase yielding $100,027 in equity gains. The steady, predictable growth pattern makes this market particularly attractive for conservative investors seeking reliable returns without wild fluctuations. Your investment here benefits from limited housing supply, tribal economic influence, and growing demand for affordable small-town living. This Moody County seat offers buyers the rare combination of attainable entry points with consistent upside potential.
18. Lead
- % change from 2016 to 2025: 103.50%
- Home value in 2016: $169,173
- Home value in 2017: $174,372
- Home value in 2018: $186,626
- Home value in 2019: $196,396
- Home value in 2020: $204,222
- Home value in 2021: $240,052
- Home value in 2022: $304,668
- Home value in 2023: $322,802
- Home value in 2024: $343,887
- Home value in 2025: $344,266
Lead’s housing market has generated extraordinary returns, with property values doubling to create $175,094 in homeowner equity. The dramatic acceleration in 2021-2022 (26.9% and 26.9% respectively) signals a fundamental market shift driven by remote work and lifestyle migration. Your investment here leverages the powerful combination of tourism demand, limited development opportunity, and growing appeal of Black Hills living. This historic mining town transformed into an outdoor recreation destination offers investment potential tied to both its natural assets and proximity to Deadwood’s entertainment economy.
17. Baltic
- % change from 2016 to 2025: 103.70%
- Home value in 2016: $171,205
- Home value in 2017: $184,006
- Home value in 2018: $199,134
- Home value in 2019: $210,021
- Home value in 2020: $226,658
- Home value in 2021: $253,283
- Home value in 2022: $301,903
- Home value in 2023: $324,872
- Home value in 2024: $331,394
- Home value in 2025: $348,742
Baltic’s housing market has generated $177,537 in wealth for property owners, doubling investments while maintaining remarkably steady appreciation. The 19.2% surge in 2022 demonstrates how quickly equity can accumulate during hot market cycles, providing strategic exit opportunities for investors. Your capital here benefits from the dual advantages of small-town affordability with proximity to Sioux Falls’ robust job market and amenities. This Minnehaha County community offers a compelling value proposition as urban sprawl continues to drive demand for accessible bedroom communities.
16. Montrose
- % change from 2016 to 2025: 103.81%
- Home value in 2016: $181,500
- Home value in 2017: $196,705
- Home value in 2018: $215,997
- Home value in 2019: $220,328
- Home value in 2020: $236,689
- Home value in 2021: $263,297
- Home value in 2022: $307,912
- Home value in 2023: $329,297
- Home value in 2024: $337,476
- Home value in 2025: $369,906
Montrose’s real estate market has delivered exceptional performance, with $188,407 in equity creation representing a 103.8% return on investment. The impressive 9.6% jump in 2025 after a modest 2024 suggests renewed momentum that savvy investors should capitalize on before the next growth cycle peaks. Your investment here leverages Montrose’s strategic position within the Sioux Falls economic orbit while maintaining the pricing advantages of small-town markets. This McCook County community exemplifies the wealth-building potential of South Dakota’s overlooked secondary markets.
15. Tulare
- % change from 2016 to 2025: 104.46%
- Home value in 2016: $105,477
- Home value in 2017: $106,886
- Home value in 2018: $109,363
- Home value in 2019: $122,578
- Home value in 2020: $129,723
- Home value in 2021: $148,912
- Home value in 2022: $182,421
- Home value in 2023: $194,712
- Home value in 2024: $192,559
- Home value in 2025: $215,661
Tulare’s housing market has turned modest investments into significant wealth engines, with property values more than doubling to generate $110,184 in equity. The exceptional 22.5% growth in 2022 followed by a slight correction in 2024 creates a strategic buying opportunity before 2025’s strong 12% rebound. Your capital benefits from Tulare’s incredibly affordable entry point combined with the security of agricultural economic foundations. This Spink County community exemplifies how rural South Dakota markets can deliver metro-level returns without the corresponding volatility.
14. Salem
- % change from 2016 to 2025: 105.86%
- Home value in 2016: $115,195
- Home value in 2017: $124,160
- Home value in 2018: $139,053
- Home value in 2019: $145,910
- Home value in 2020: $150,041
- Home value in 2021: $176,518
- Home value in 2022: $206,720
- Home value in 2023: $222,338
- Home value in 2024: $220,994
- Home value in 2025: $237,138
Salem’s housing market has delivered exceptional returns, more than doubling investments to create $121,943 in homeowner wealth. The impressive 17.6% surge in 2021 followed by sustained growth signals strong fundamental demand that transcends typical market cycles. Your investment here benefits from Salem’s combination of agricultural stability, manufacturing employment, and relatively affordable housing stock compared to regional alternatives. This McCook County seat offers a compelling balance of established community infrastructure with continued room for appreciation.
13. Wall
- % change from 2016 to 2025: 109.10%
- Home value in 2016: $134,363
- Home value in 2017: $140,485
- Home value in 2018: $148,985
- Home value in 2019: $158,353
- Home value in 2020: $164,814
- Home value in 2021: $185,535
- Home value in 2022: $222,763
- Home value in 2023: $248,865
- Home value in 2024: $254,832
- Home value in 2025: $280,954
Wall’s real estate market has generated phenomenal 109.1% returns, creating $146,591 in equity for property owners since 2016. The market’s dramatic 20.1% surge in 2022 demonstrates how tourism-driven economies can rapidly accelerate home values during peak demand periods. Your investment here capitalizes on Wall’s unique position as a gateway to Badlands National Park, creating reliable tourist-driven demand with limited housing supply. This Pennington County community offers the rare combination of tourist economy upside with relatively affordable entry points compared to other recreational destinations.
12. Custer
- % change from 2016 to 2025: 109.44%
- Home value in 2016: $210,482
- Home value in 2017: $220,157
- Home value in 2018: $228,488
- Home value in 2019: $251,606
- Home value in 2020: $274,666
- Home value in 2021: $310,116
- Home value in 2022: $372,808
- Home value in 2023: $413,151
- Home value in 2024: $421,713
- Home value in 2025: $440,824
Custer’s housing market has transformed six-figure investments into substantial assets, more than doubling in value to generate $230,343 in equity. The extraordinary 20.2% growth in 2022 showcases how quickly wealth can accumulate in high-demand destination markets during favorable economic conditions. Your investment here leverages Custer’s unique position as a gateway to iconic Black Hills attractions, creating natural demand limitations against a fixed housing supply. This tourism-driven community offers investment potential tied to both vacation property demand and retirement migration trends.
11. Burbank
- % change from 2016 to 2025: 109.75%
- Home value in 2016: $146,975
- Home value in 2017: $152,007
- Home value in 2018: $165,332
- Home value in 2019: $175,576
- Home value in 2020: $190,464
- Home value in 2021: $213,507
- Home value in 2022: $246,657
- Home value in 2023: $267,094
- Home value in 2024: $285,347
- Home value in 2025: $308,286
Burbank’s property values have surged 109.8%, converting modest homes into substantial assets with $161,311 in wealth creation. The consistently strong year-over-year gains without significant corrections suggest fundamental supply-demand imbalances that favor continued appreciation. Your investment here benefits from Burbank’s strategic position near Vermillion’s university economy while maintaining the tax and regulatory advantages of unincorporated status. This Clay County community offers an attractive combination of relatively affordable entry points with strong connections to stable institutional employment drivers.
10. Canistota
- % change from 2016 to 2025: 111.33%
- Home value in 2016: $144,674
- Home value in 2017: $152,845
- Home value in 2018: $167,612
- Home value in 2019: $186,245
- Home value in 2020: $193,285
- Home value in 2021: $213,895
- Home value in 2022: $258,263
- Home value in 2023: $269,903
- Home value in 2024: $277,610
- Home value in 2025: $305,739
Canistota’s housing market has more than doubled homeowner equity, generating an impressive $161,066 wealth increase since 2016. The remarkable 20.7% surge in 2022 illustrates how rapidly value can accumulate during peak market conditions, creating optimal exit opportunities for timely investors. Your capital here benefits from the rare combination of relatively affordable entry points with potential for significant appreciation driven by limited housing inventory. This McCook County community’s growth trajectory suggests continued upside as rural markets increasingly attract remote workers and lifestyle migrants.
9. Colton
- % change from 2016 to 2025: 112.98%
- Home value in 2016: $152,905
- Home value in 2017: $165,526
- Home value in 2018: $180,094
- Home value in 2019: $191,056
- Home value in 2020: $201,315
- Home value in 2021: $229,587
- Home value in 2022: $267,266
- Home value in 2023: $298,571
- Home value in 2024: $306,166
- Home value in 2025: $325,662
Colton’s real estate market has delivered exceptional 113.0% appreciation, turning $152,905 properties into $325,662 assets with $172,756 in wealth creation. The strong and steady growth curve without significant corrections signals robust underlying demand fundamentals resistant to economic fluctuations. Your investment here capitalizes on Colton’s strategic position within the Sioux Falls economic orbit while maintaining significantly lower entry costs than the primary market. This Minnehaha County community offers compelling value for investors seeking the stability of rural markets with upside tied to urban proximity.
8. Hill City
- % change from 2016 to 2025: 113.45%
- Home value in 2016: $209,588
- Home value in 2017: $218,785
- Home value in 2018: $232,148
- Home value in 2019: $245,450
- Home value in 2020: $263,326
- Home value in 2021: $310,309
- Home value in 2022: $389,713
- Home value in 2023: $422,386
- Home value in 2024: $431,888
- Home value in 2025: $447,364
Hill City’s housing market has generated extraordinary returns, with property values more than doubling to create $237,776 in homeowner equity. The remarkable 25.6% surge in 2022 demonstrates how tourism-driven markets can rapidly accelerate during peak demand cycles, creating significant wealth-building opportunities. Your investment here leverages the perfect storm of limited developable land, growing Black Hills tourism, and increasing appeal of mountain lifestyle communities. This Pennington County gem offers investment potential tied to both vacation property demand and the growing trend of remote work-enabled migration.
7. Centerville
- % change from 2016 to 2025: 115.08%
- Home value in 2016: $119,331
- Home value in 2017: $123,781
- Home value in 2018: $134,992
- Home value in 2019: $138,778
- Home value in 2020: $154,575
- Home value in 2021: $177,710
- Home value in 2022: $201,672
- Home value in 2023: $229,977
- Home value in 2024: $234,954
- Home value in 2025: $256,654
Centerville’s housing market has delivered exceptional 115.1% returns, transforming modest investments into substantial assets with $137,324 in equity creation. The impressive 14% growth in 2022-2023 during broader market slowdowns demonstrates this community’s resilience against typical real estate cycles. Your investment here benefits from Centerville’s combination of affordable entry points, stable agricultural economic base, and growing appeal as a bedroom community for regional employment centers. This Turner County town offers compelling value for investors seeking maximum appreciation potential from minimal initial capital. Its continued upside is supported by limited housing inventory against steady demand.
6. Marion
- % change from 2016 to 2025: 120.36%
- Home value in 2016: $115,751
- Home value in 2017: $122,168
- Home value in 2018: $130,863
- Home value in 2019: $135,440
- Home value in 2020: $156,563
- Home value in 2021: $174,119
- Home value in 2022: $210,983
- Home value in 2023: $232,987
- Home value in 2024: $234,191
- Home value in 2025: $255,073
Marion’s remarkable 120.4% appreciation has transformed modest homes into substantial assets, creating $139,322 in wealth for property owners. The explosive 21.2% surge in 2022 showcases how rapidly equity can accumulate during market upswings, offering strategic exit opportunities for investors. Your capital benefits from Marion’s combination of affordability, limited housing supply, and growing appeal as remote work expands location options. This Turner County community represents the financial potential of overlooked rural markets that offer outsized returns relative to metropolitan investments.
5. Keystone
- % change from 2016 to 2025: 120.39%
- Home value in 2016: $272,714
- Home value in 2017: $283,141
- Home value in 2018: $299,090
- Home value in 2019: $323,887
- Home value in 2020: $357,148
- Home value in 2021: $408,694
- Home value in 2022: $508,234
- Home value in 2023: $567,917
- Home value in 2024: $582,176
- Home value in 2025: $601,038
Keystone’s housing market has skyrocketed 120.4%, generating a staggering $328,324 in equity for property owners since 2016. The exceptional 24.4% surge in 2022 demonstrates the wealth-building velocity possible in high-demand tourism markets during peak investment cycles. Your capital here leverages Keystone’s unique position as gateway to Mount Rushmore, creating natural supply constraints against consistently strong visitor-driven demand. This Pennington County tourist hub offers investment potential tied to both vacation property premiums and the growing appeal of Black Hills living.
4. Hermosa
- % change from 2016 to 2025: 122.41%
- Home value in 2016: $223,697
- Home value in 2017: $232,958
- Home value in 2018: $244,164
- Home value in 2019: $260,505
- Home value in 2020: $289,172
- Home value in 2021: $340,723
- Home value in 2022: $421,031
- Home value in 2023: $464,887
- Home value in 2024: $480,403
- Home value in 2025: $497,522
Hermosa’s housing market has delivered extraordinary 122.4% returns, generating $273,825 in homeowner wealth in just nine years. The remarkable 23.6% growth in 2022 illustrates how Black Hills properties can rapidly appreciate during demand surges, creating substantial wealth-building opportunities. Your investment here capitalizes on Hermosa’s strategic position between Rapid City amenities and Black Hills attractions while maintaining relative affordability. This Custer County community offers compelling value as both a primary residence alternative to Rapid City and as a gateway to the southern Hills recreation areas.
3. Wakonda
- % change from 2016 to 2025: 122.99%
- Home value in 2016: $84,925
- Home value in 2017: $86,997
- Home value in 2018: $93,392
- Home value in 2019: $102,493
- Home value in 2020: $110,254
- Home value in 2021: $128,422
- Home value in 2022: $143,580
- Home value in 2023: $154,278
- Home value in 2024: $167,657
- Home value in 2025: $189,370
Wakonda’s housing market has generated exceptional wealth for property owners, with values more than doubling to create $104,445 in equity from minimal initial investment. The exceptionally low entry point combined with 123% appreciation offers an unmatched value proposition for investors seeking maximum percentage returns. Your capital here benefits from Wakonda’s combination of affordability, limited housing inventory, and growing appeal as remote work makes rural living increasingly viable. This Clay County gem demonstrates how South Dakota’s most affordable markets can deliver percentage returns that significantly outperform higher-priced alternatives.
2. Humboldt
- % change from 2016 to 2025: 123.75%
- Home value in 2016: $160,791
- Home value in 2017: $176,251
- Home value in 2018: $190,912
- Home value in 2019: $203,926
- Home value in 2020: $221,720
- Home value in 2021: $254,783
- Home value in 2022: $302,584
- Home value in 2023: $330,309
- Home value in 2024: $339,195
- Home value in 2025: $359,772
Humboldt’s real estate market has delivered extraordinary 123.8% appreciation, transforming $160,791 investments into $359,772 assets with $198,981 in wealth creation. The remarkable 18.8% surge in 2022 demonstrates how rapidly equity can accumulate during market upswings, creating optimal exit points for strategic investors. Your capital here benefits from Humboldt’s strategic position near Sioux Falls while maintaining the pricing advantages and lifestyle benefits of small-town living. This Minnehaha County community offers compelling value as both a primary residence alternative and an investment vehicle with continued upside potential.
1. New Underwood
- % change from 2016 to 2025: 129.74%
- Home value in 2016: $160,729
- Home value in 2017: $169,253
- Home value in 2018: $179,155
- Home value in 2019: $194,847
- Home value in 2020: $206,185
- Home value in 2021: $232,401
- Home value in 2022: $288,452
- Home value in 2023: $328,549
- Home value in 2024: $338,635
- Home value in 2025: $369,253
New Underwood’s housing market has delivered South Dakota’s top returns, with property values skyrocketing 129.7% to generate $208,524 in homeowner wealth. The explosive 24.1% jump in 2022 and 13.9% in 2023 demonstrates how rapidly equity can accumulate during favorable market conditions. Your investment here capitalizes on New Underwood’s strategic position near Rapid City while maintaining significant affordability advantages over the primary market. This Pennington County community exemplifies the exceptional financial potential of secondary markets that combine rural living benefits with proximity to urban amenities.
