In comparison to other states across the country, the cost of living in South Dakota is relatively reasonable. Housing, healthcare, and transportation expenses are lower than the national average, but you’ll need to make between $30,895 and $102,623 per year to live comfortably in South Dakota.

Here to break down the essential expenses of living in South Dakota is

Jerry

, the trustworthy broker app created to save drivers money on car and

home insurance

. We’ll break down how much you need to make to live comfortably in South Dakota based on real everyday costs.

As a bonus, we’ll go over how you can save on South Dakota car insurance costs!

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How high is the cost of living in South Dakota?

According to MERIC’s Cost of Living Index (COLI), South Dakota’s COLI of 93.8 is below average.

In the United States, the average COLI is 100. As such, any index lower than 100 is considered below average. For context, the lowest COLI in the country is in Mississippi, with an index of 83.1, while the country’s highest COLI is in

Hawaii

, with an index of 192.9.

So what does a cost of living index measure? In short, the cost of essential expenses, such as food, housing, transportation, and healthcare, are measured in relation to the average cost of such expenses in other states across the country.

Let’s take a look at the cost of essential expenses in South Dakota!

Food: $285 per month

Leading the charge on the list of essential expenses is food. According to data from MIT’s

Living Wage Calculator

, a single South Dakota adult spends $285 per month, or $3,423 per year, on food and drinks.

So how does that compare to the rest of the country? With the nationwide average sitting at $3,240 per year, South Dakota’s food costs are relatively average. However, this calculation varies depending on the size and composition of a family and the area of the state where the individual resides.

For example, when measuring two working adults with two children, the cost of food-related expenses spikes to $10,068 per year. Keep in mind that these numbers only measure essential, non-negotiable food expenses, i.e., your groceries. The dollars spent on your morning latte, fancy restaurant outing, or weekend cocktail are not included in these costs.

Healthcare: $2,560 per year

According to the Bureau of Economic Analysis Person Consumption Expenditures Report, the national average per-capita cost of healthcare is $5,724 per year or $477 per month. In comparison, the average annual cost of healthcare in South Dakota totals $2,560.

While South Dakota healthcare costs are relatively low, these expenses can significantly vary depending on individual and familial health status, location, and age. If you or an individual within your household require ongoing medical services or prescriptions, you’ll be looking at a much higher cost of living in South Dakota.

Housing: $611 to $1,170 per month

Of the most significant players in a state’s cost of living index is the price of housing. In the Mount Rushmore State, the typical home is $45,800 less than the national median home value, with the average price of a home at $159,100.

While housing costs are relatively low in South Dakota, the amount spent on housing can widely vary depending on the type of home you live in. See below for the average costs for different housing options.

Median monthly mortgage payment: $1,042

Average studio rent: $547

Average one-bedroom rent: $553

Average two-bedroom rent: $752

Average three-bedroom rent: $878

Average four-bedroom rent: $949

Transportation: $442 to $1,308 per month

Transportation is another highly variable cost within South Dakota, depending on such factors as commute time and method, with 89% of commuters driving to work.

On average, South Dakota residents can spend anywhere from $442 to $1,308 per month on transportation costs. To put those numbers into perspective, the annual average cost of transportation across the country is $818 a month.

For some context on the cost of transportation in South Dakota, here are a few relevant figures:

Average annual cost of car insurance in South Dakota: $1,990 to $3,006 (

liability

only vs. collision and comprehensive coverage added)

Average

commute length

in South Dakota: 16.6 minutes

Average cost of a gallon of gas, 2020: $2.16

MORE:

South Dakota car insurance laws

How much you need to live comfortably in South Dakota: $30,895 to $102,623 per year

After taking the cost of non-negotiable expenses into account, a single adult in South Dakota needs to have an average hourly income of at least $14.85/hour to live comfortably. On the other hand, the living wage for a family of five is $24.67/hour.

Given that the state's minimum wage is $9.95/hour, living a comfortable life in South Dakota can prove difficult. After all, these figures only account for the bare minimum expenses. Living well, on the other hand, can cost a lot more.

Check out the list below to see how some basic non-essentials compare in cost to the national average:

Average cost of dinner, drinks, and a movie: $97.14 (US average: $116)

Average cost of a Big Mac: $3.99 (US average: $3.99)

Mount Rushmore tickets: Free! (US average theme park ticket price: $91)

Average sales tax: 4.5%(US average: 5.09%)

The South Dakota cities with the lowest cost of living

While the cost of living in South Dakota is relatively low in comparison to the rest of the United States, the cost of living index (COLI) varies by city.

Here’s a list of cities in South Dakota with the lowest COLI:

Britton (COLI: 73.0): In proximity to lakes and ample outdoor recreation options, this city has the lowest cost of living in the state!

Ipswitch (COLI: 73.1): With a low unemployment rate, low crime rate, and high community involvement, Ipswitch is an affordable and high-quality place to call home.

Springfield (COLI: 72.3): Located on Lewis and Clark Lake, Springfield welcomes residents looking for a low cost of living.

MORE:

Best places to live in South Dakota

How to easily find home and car insurance in South Dakota

Although the cost of living in South Dakota is relatively low, enjoying a full life may be a bit more expensive. Luckily, you can keep your non-negotiable expenses to a minimum with home and car insurance app

Jerry

With Jerry, shopping for a new insurance policy has never been easier. After you download the app and answer a few questions,

Jerry

will take care of the rest, including canceling your previous policy! Jerry will even ensure you continue to have the right policy at the best price over time.

On average, Jerry users save over $800 a year on car insurance alone! With those kinds of savings, you’ll have a little extra room in your budget for those non-essentials.

“Using
Jerry
is a super straightforward process, and at each step, you can see exactly what coverage you’re paying for. Thanks to Jerry, I’m paying $900 less each year while keeping full coverage for my new car!” —Martin H.

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