According to the Zillow Home Value Index, South Dakota’s most expensive towns in 2025 are setting new records. From scenic Black Hills hideaways to fast-growing lakeside retreats, these 15 towns now boast the state’s highest home prices. Some climbed steadily over the past decade; others surged seemingly overnight. What they share is a mix of location, lifestyle, and rising demand that’s reshaping the local real estate landscape. By ranking them by their 2025 values and tracking the trends from 2010 on, this list offers a clear, data-backed look at where homebuyers are paying top dollar—and why.
15. Keystone – 189.4% Home Price Increase Since 2010
- 2010: $213,579
- 2011: $219,984 (+$6,405, +3.00% from previous year)
- 2012: $223,259 (+$3,275, +1.49% from previous year)
- 2013: $240,416 (+$17,157, +7.68% from previous year)
- 2014: $248,815 (+$8,399, +3.49% from previous year)
- 2015: $267,102 (+$18,287, +7.35% from previous year)
- 2016: $282,009 (+$14,907, +5.58% from previous year)
- 2017: $294,330 (+$12,320, +4.37% from previous year)
- 2018: $313,466 (+$19,136, +6.50% from previous year)
- 2019: $342,754 (+$29,289, +9.34% from previous year)
- 2020: N/A
- 2021: $436,832
- 2022: $554,982 (+$118,151, +27.05% from previous year)
- 2023: $585,325 (+$30,343, +5.47% from previous year)
- 2024: $602,415 (+$17,089, +2.92% from previous year)
- 2025: $618,043 (+$15,628, +2.59% from previous year)
Since 2010, home values in Keystone have risen nearly 190%, with especially strong growth between 2021 and 2022. Despite a missing data point in 2020, the trend shows a clear and consistent increase over time. This places Keystone firmly among South Dakota’s most expensive towns in 2025.
Keystone – A Black Hills Hub with Year-Round Demand
Keystone’s popularity stems from its role as a gateway to Mount Rushmore, drawing millions of visitors annually. Its small-town charm and proximity to outdoor attractions make it a sought-after location for vacation homes and rentals, pushing property values up over the years. Located in the Black Hills region, the town benefits from year-round tourism, which fuels local investment and keeps real estate prices climbing.
Its scenic location, combined with historical appeal and a strong short-term rental market, has made Keystone a steady performer in South Dakota’s housing landscape. Even with moderate gains in recent years, the long-term trend reflects how desirable the area has become for both residents and investors alike.
14. Henry – 66.3% Home Price Increase Since 2016
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: $322,229
- 2017: $330,937 (+$8,708, +2.70% from previous year)
- 2018: $338,172 (+$7,235, +2.19% from previous year)
- 2019: $355,111 (+$16,939, +5.01% from previous year)
- 2020: N/A
- 2021: $441,418
- 2022: $526,922 (+$85,504, +19.37% from previous year)
- 2023: $566,460 (+$39,538, +7.50% from previous year)
- 2024: $583,175 (+$16,715, +2.95% from previous year)
- 2025: $535,850 (-$47,325, -8.12% from previous year)
Henry saw a sharp rise in prices between 2016 and 2023, with the peak hitting in 2024. While 2025 saw a noticeable drop, home values remain significantly higher than they were less than a decade ago. Despite the recent dip, Henry holds its position on this list thanks to years of steady growth before the correction.
Henry – A Quiet Climb Followed by Correction
Located in the northeast part of the state, Henry is a small town with deep agricultural roots. While it may not attract tourists like some towns on this list, local demand for homes surged in the 2020s, likely driven by remote work and low interest rates during the pandemic-era boom. That led to price spikes and competitive sales well above earlier values.
The recent decrease in 2025 may reflect broader market cooling or local shifts in demand. Even so, Henry’s long-term trajectory shows a notable 66% increase from 2016, underscoring just how much the market shifted over a relatively short period.
13. Hermosa – 198.3% Home Price Increase Since 2012
- 2010: N/A
- 2011: N/A
- 2012: $173,616
- 2013: $190,716 (+$17,100, +9.85% from previous year)
- 2014: $193,220 (+$2,504, +1.31% from previous year)
- 2015: $214,568 (+$21,348, +11.05% from previous year)
- 2016: $233,887 (+$19,319, +9.00% from previous year)
- 2017: $244,663 (+$10,776, +4.61% from previous year)
- 2018: $257,880 (+$13,217, +5.40% from previous year)
- 2019: $276,996 (+$19,115, +7.41% from previous year)
- 2020: N/A
- 2021: $368,353
- 2022: $464,429 (+$96,076, +26.08% from previous year)
- 2023: $484,111 (+$19,681, +4.24% from previous year)
- 2024: $503,109 (+$18,998, +3.92% from previous year)
- 2025: $518,125 (+$15,016, +2.98% from previous year)
Hermosa’s home values have soared since 2012, nearly tripling in just over a decade. The strongest surge came between 2021 and 2022, though the town continued to experience consistent gains in the years that followed. It now ranks among the top 15 most expensive markets in South Dakota.
Hermosa – Steady Growth Near Rapid City
Just southeast of Rapid City, Hermosa has benefited from its proximity to both Custer State Park and major highways. The area offers a more relaxed pace of life while still allowing easy access to urban conveniences and tourism hotspots. That makes it attractive for commuters and retirees alike.
From 2012 to 2025, the town saw a nearly 200% jump in home prices, reflecting a steady rise in popularity. Modest in size but rich in opportunity, Hermosa shows how strategic location and quiet livability can drive long-term property value.
12. South Shore – 19.7% Price Decline Since 2022
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: N/A
- 2017: N/A
- 2018: N/A
- 2019: N/A
- 2020: N/A
- 2021: N/A
- 2022: $635,885
- 2023: $643,991 (+$8,105, +1.27% from previous year)
- 2024: $561,905 (-$82,085, -12.75% from previous year)
- 2025: $510,346 (-$51,559, -9.18% from previous year)
South Shore entered the high-price tier quickly in 2022, only to see values fall sharply by 2025. Despite the recent decline, it remains one of the most expensive towns in South Dakota due to its brief but high peak in home values. The drop may reflect a correction after an unusually fast rise.
South Shore – A Price Surge, Then Pullback
South Shore’s short data history makes it tricky to analyze long-term trends, but the sharp rise in 2022 followed by two consecutive years of decline suggests a brief, intense housing boom. That kind of volatility often follows speculative interest or temporary demand spikes, especially in small lakeside towns.
Located along South Dakota’s eastern lakes region, South Shore may have drawn buyers looking for waterfront or seasonal properties during the pandemic years. But as the market cooled, prices adjusted. Even so, it still ranks high in average value by 2025.
11. Wentworth – 104.3% Home Price Increase Since 2017
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: N/A
- 2017: $247,991
- 2018: $264,108 (+$16,117, +6.50% from previous year)
- 2019: $284,815 (+$20,707, +7.84% from previous year)
- 2020: N/A
- 2021: $352,554
- 2022: $445,130 (+$92,576, +26.26% from previous year)
- 2023: $487,970 (+$42,840, +9.62% from previous year)
- 2024: $495,816 (+$7,846, +1.61% from previous year)
- 2025: $506,784 (+$10,968, +2.21% from previous year)
Home values in Wentworth have more than doubled since 2017, thanks to rapid appreciation from 2021 to 2023. While the growth has leveled out recently, the town has managed to retain its high ranking in South Dakota’s housing market going into 2025.
Wentworth – Strong Pandemic-Era Growth Holding Firm
Located near Lake Madison in eastern South Dakota, Wentworth has benefited from a rise in lakefront and second-home demand over the past several years. Prices rose sharply from 2021 through 2023 as buyers sought more space and recreation options during the pandemic.
Even with smaller gains recently, Wentworth’s high baseline has held steady. Continued interest in lake living and relatively low inventory have helped keep the market strong, making it one of the state’s more resilient high-value towns.
10. Florence – 28.0% Home Price Increase Since 2022
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: N/A
- 2017: N/A
- 2018: N/A
- 2019: N/A
- 2020: N/A
- 2021: N/A
- 2022: $394,363
- 2023: $468,782 (+$74,419, +18.87% from previous year)
- 2024: $509,910 (+$41,128, +8.77% from previous year)
- 2025: $504,887 (-$5,024, -0.99% from previous year)
Florence saw sharp increases in home prices from 2022 to 2024, followed by a minor dip in 2025. Even with the recent pullback, property values are up 28% from their 2022 level, securing the town’s position as one of South Dakota’s most expensive markets this year.
Florence – Fast Gains and Strong Value Retention
Florence is a small community in eastern South Dakota, not far from Watertown. Although relatively quiet, its housing market saw rapid appreciation in recent years, likely driven by buyers seeking rural properties within commuting distance of larger employment hubs.
The dip in 2025 is small compared to earlier growth and could be part of a natural adjustment after two years of rapid appreciation. With limited inventory and demand from buyers priced out of nearby cities, Florence remains one of the most valuable places to buy in the region.
9. Renner – 3.49% Home Price Increase Since 2024
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: N/A
- 2017: N/A
- 2018: N/A
- 2019: N/A
- 2020: N/A
- 2021: N/A
- 2022: N/A
- 2023: N/A
- 2024: $477,520
- 2025: $494,169 (+$16,649, +3.49% from previous year)
Renner makes the top 10 list despite having only two years of available data. With home prices up nearly 3.5% in just one year, the town has quickly established itself as one of the higher-priced markets in the state.
Renner – Small Town, Big Market Entry
Renner is located just north of Sioux Falls, one of South Dakota’s fastest-growing urban areas. Its close proximity to the city makes it an appealing option for those seeking suburban space without giving up access to jobs, services, and amenities in the metro core.
The limited available data suggests a steady upward trajectory, with 2025 values firmly in the high-price bracket. Renner’s growth is likely driven by spillover demand from Sioux Falls, with buyers drawn to lower density, newer housing, and the ease of commuting into the city.
8. Castlewood – 69.4% Home Price Increase Since 2017
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: N/A
- 2017: $282,271
- 2018: $297,399 (+$15,128, +5.36% from previous year)
- 2019: $316,955 (+$19,556, +6.58% from previous year)
- 2020: N/A
- 2021: $402,158
- 2022: $489,131 (+$86,974, +21.63% from previous year)
- 2023: $538,832 (+$49,700, +10.16% from previous year)
- 2024: $542,914 (+$4,082, +0.76% from previous year)
- 2025: $478,202 (-$64,712, -11.92% from previous year)
Castlewood’s home prices rose dramatically from 2017 through 2023, more than doubling in that period. But 2025 saw a steep decline, pulling values back to 2021 levels. Still, even after the dip, prices remain well above where they were just a few years ago.
Castlewood – Volatility After a Long Run-Up
Castlewood sits in eastern South Dakota and is known for its small-town atmosphere and proximity to larger towns like Watertown. Homebuyers flocked to the area during the height of the pandemic housing boom, sending prices soaring.
The nearly 12% drop in 2025 may reflect overextension during those peak years. Nevertheless, Castlewood’s housing market has grown considerably since the mid-2010s, and its average home price still places it among the state’s most expensive towns today.
7. Custer – 166.3% Home Price Increase Since 2012
- 2010: N/A
- 2011: N/A
- 2012: $175,981
- 2013: $188,361 (+$12,380, +7.03% from previous year)
- 2014: $195,793 (+$7,431, +3.95% from previous year)
- 2015: $211,023 (+$15,230, +7.78% from previous year)
- 2016: $223,020 (+$11,997, +5.69% from previous year)
- 2017: $234,502 (+$11,482, +5.15% from previous year)
- 2018: $245,844 (+$11,341, +4.84% from previous year)
- 2019: $274,741 (+$28,897, +11.75% from previous year)
- 2020: N/A
- 2021: $339,179
- 2022: $413,754 (+$74,575, +21.99% from previous year)
- 2023: $439,587 (+$25,834, +6.24% from previous year)
- 2024: $450,700 (+$11,112, +2.53% from previous year)
- 2025: $468,688 (+$17,988, +3.99% from previous year)
Custer’s real estate market has delivered steady growth over the last 13 years, with prices climbing more than 160% since 2012. Gains remained strong even through 2025, and there are no signs of major corrections so far.
Custer – Gateway to the Black Hills
Located in western South Dakota near Custer State Park, this town benefits from a robust tourism economy and scenic surroundings. It appeals to retirees, second-home buyers, and year-round residents alike. Its location makes it a perfect base for those who want both nature and access to amenities.
Growth has been consistent year after year, with particularly strong increases during 2021 and 2022. Continued interest in Black Hills property keeps the demand strong, pushing Custer firmly into South Dakota’s top housing markets by value.
6. Hill City – 117.3% Home Price Increase Since 2012
- 2010: $214,642
- 2011: $211,956 (-$2,686, -1.25% from previous year)
- 2012: $184,062 (-$27,895, -13.16% from previous year)
- 2013: $197,533 (+$13,472, +7.32% from previous year)
- 2014: $204,753 (+$7,219, +3.65% from previous year)
- 2015: $212,272 (+$7,519, +3.67% from previous year)
- 2016: $217,868 (+$5,596, +2.64% from previous year)
- 2017: $228,624 (+$10,756, +4.94% from previous year)
- 2018: $243,134 (+$14,510, +6.35% from previous year)
- 2019: $258,292 (+$15,158, +6.23% from previous year)
- 2020: N/A
- 2021: $336,022
- 2022: $424,973 (+$88,952, +26.47% from previous year)
- 2023: $437,446 (+$12,473, +2.93% from previous year)
- 2024: $453,688 (+$16,242, +3.71% from previous year)
- 2025: $466,316 (+$12,627, +2.78% from previous year)
Hill City’s housing market has more than doubled since 2012, showing a sustained rise even after the explosive growth in 2021–2022. The town continues to see year-over-year gains, and its 2025 values rank among the highest in South Dakota.
Hill City – Consistent Growth in the Heart of the Hills
Often referred to as the “Heart of the Hills,” Hill City is one of the most centrally located towns in the Black Hills region. It sits along the scenic Highway 385 and is surrounded by national forest, lakes, and tourist attractions like the 1880 Train and Mickelson Trail.
Its balanced appeal for both year-round residents and second-home buyers helps explain its consistent rise in values. The pandemic years supercharged demand, and while price increases have moderated, Hill City remains one of the state’s most reliable high-value markets heading into 2025.
5. Spearfish – 103.6% Home Price Increase Since 2013
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: $227,673
- 2014: $233,287 (+$5,614, +2.47% from previous year)
- 2015: $250,435 (+$17,148, +7.35% from previous year)
- 2016: $263,516 (+$13,081, +5.22% from previous year)
- 2017: $272,582 (+$9,065, +3.44% from previous year)
- 2018: $283,401 (+$10,819, +3.97% from previous year)
- 2019: $294,206 (+$10,805, +3.81% from previous year)
- 2020: N/A
- 2021: $349,778
- 2022: $429,476 (+$79,697, +22.79% from previous year)
- 2023: $434,928 (+$5,452, +1.27% from previous year)
- 2024: $456,367 (+$21,439, +4.93% from previous year)
- 2025: $463,589 (+$7,221, +1.58% from previous year)
Spearfish has seen its average home value double since 2013, thanks to steady annual increases and a major boost between 2021 and 2022. Prices have continued to rise, though more gradually in the last two years, maintaining the town’s position near the top of the state’s market.
Spearfish – A University Town with Scenic Appeal
Nestled in the northern Black Hills, Spearfish blends natural beauty with a vibrant small-town atmosphere. It’s home to Black Hills State University and draws in students, retirees, and outdoor enthusiasts alike. The town offers easy access to Spearfish Canyon and Interstate 90, making it well-connected yet peaceful.
Spearfish’s growth is supported by both residential demand and a solid base of services and education-related employment. The local market remains active, and homes here continue to hold value well above the state average heading into 2025.
4. Goodwin – 46.2% Home Price Increase Since 2018
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: N/A
- 2017: N/A
- 2018: $310,318
- 2019: $320,876 (+$10,558, +3.40% from previous year)
- 2020: N/A
- 2021: $374,628
- 2022: $452,871 (+$78,244, +20.89% from previous year)
- 2023: $493,758 (+$40,887, +9.03% from previous year)
- 2024: $474,120 (-$19,638, -3.98% from previous year)
- 2025: $453,691 (-$20,429, -4.31% from previous year)
Goodwin’s home values surged from 2018 to 2023, increasing by more than 59%. The past two years have brought price declines, but 2025 values still stand 46% above 2018 levels. This places Goodwin among South Dakota’s priciest housing markets today.
Goodwin – Pandemic-Era Boom Now Leveling Out
Goodwin is a small town in the eastern part of the state, where affordability once dominated the market. But beginning in 2020, a sharp rise in demand pushed home prices significantly higher, reflecting a statewide trend toward rural living and lower density housing.
While prices have dipped slightly since their 2023 peak, the broader upward trajectory remains intact. Buyers priced out of nearby towns like Watertown may continue to turn toward Goodwin, helping stabilize values in the near term.
3. Chancellor – 76.7% Home Price Increase Since 2019
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: N/A
- 2017: N/A
- 2018: N/A
- 2019: $249,451
- 2020: N/A
- 2021: $309,090
- 2022: $389,193 (+$80,103, +25.92% from previous year)
- 2023: $399,311 (+$10,117, +2.60% from previous year)
- 2024: $414,689 (+$15,379, +3.85% from previous year)
- 2025: $440,598 (+$25,908, +6.25% from previous year)
Chancellor has seen steady and significant appreciation since 2019, with a total increase of nearly 77%. Gains have accelerated in the last two years, helping push the town into the top three most expensive markets in South Dakota as of 2025.
Chancellor – Sustained Growth in a Tight Market
Chancellor is a small town southwest of Sioux Falls, and it has benefited from its location in the commuter belt of the state’s largest city. As Sioux Falls continues to grow, nearby towns like Chancellor are seeing increased interest and limited housing supply.
Home price growth here has been sustained without dramatic peaks or dips, reflecting a healthy and balanced market. Buyers looking for proximity to the metro without the costs are likely to keep Chancellor’s real estate values on an upward path.
2. Deadwood – 116.2% Home Price Increase Since 2013
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: $203,593
- 2014: $219,254 (+$15,661, +7.69% from previous year)
- 2015: $222,956 (+$3,701, +1.69% from previous year)
- 2016: $230,407 (+$7,451, +3.34% from previous year)
- 2017: $241,468 (+$11,061, +4.80% from previous year)
- 2018: $245,023 (+$3,555, +1.47% from previous year)
- 2019: $264,581 (+$19,559, +7.98% from previous year)
- 2020: N/A
- 2021: $330,408
- 2022: $414,435 (+$84,027, +25.43% from previous year)
- 2023: $419,578 (+$5,142, +1.24% from previous year)
- 2024: $432,651 (+$13,073, +3.12% from previous year)
- 2025: $440,042 (+$7,391, +1.71% from previous year)
Deadwood’s home prices have more than doubled since 2013, driven by consistent growth and a major spike in 2022. Though gains have slowed recently, values remain high and stable. In 2025, Deadwood stands as the second most expensive housing market in South Dakota.
Deadwood – Historic Charm and Year-Round Activity
Famous for its gold rush past and preserved Wild West history, Deadwood remains one of South Dakota’s most iconic towns. Its unique blend of historic character, legal gaming, and tourism has made it a consistent destination for out-of-state buyers and second-home seekers.
The surge in 2022 likely reflects increased remote work flexibility and demand for mountain towns with strong identity and entertainment options. With values still rising, Deadwood remains a top-tier housing market — and its distinctive charm keeps interest strong, even as price growth moderates.
1. Summerset – 90.2% Home Price Increase Since 2016
- 2010: N/A
- 2011: N/A
- 2012: N/A
- 2013: N/A
- 2014: N/A
- 2015: N/A
- 2016: $224,343
- 2017: $234,946 (+$10,604, +4.73% from previous year)
- 2018: $251,848 (+$16,901, +7.19% from previous year)
- 2019: $265,494 (+$13,647, +5.42% from previous year)
- 2020: N/A
- 2021: $314,287
- 2022: $389,819 (+$75,533, +24.03% from previous year)
- 2023: $396,926 (+$7,107, +1.82% from previous year)
- 2024: $417,696 (+$20,770, +5.23% from previous year)
- 2025: $426,691 (+$8,995, +2.15% from previous year)
Summerset claims the top spot with home values reaching nearly double what they were in 2016. A major leap in 2022 led the surge, and the town has maintained its high position with continued gains through 2025. It now stands as South Dakota’s most expensive housing market.
Summerset – Black Hills Growth Leader
Located just outside of Rapid City, Summerset is one of the fastest-growing towns in the western part of the state. Its position between Rapid City and Sturgis gives it unique appeal — close enough to the amenities of a major city, yet nestled in the scenic Black Hills foothills.
With new developments, rising demand for family-friendly communities, and a convenient location for commuters, Summerset’s growth has been fueled by both migration and investment. That steady rise in desirability is reflected in its home prices, which have climbed consistently to lead the state in 2025.
