The Real Reason Homes Feel So Expensive in Sioux Falls, SD (And It’s Not What You Think)

Author Amy Stockberger | Founder, Amy Stockberger Real Estate | Creator, Lifetime Home Support™ Academy | Partner, ProInsight – helping agents scale with Relational Tech™ | Ranked the #1 Real Estate Team in South Dakota since 2017 and #33 in the Nation by Real Trends

When you scroll through your feed, it’s easy to find someone blaming big investors for today’s housing costs. And according to a recent national survey, nearly half of Americans (48%) believe investors are the top reason homes feel so expensive. But here in Sioux Falls, SD, that theory doesn’t actually match what the data shows.

While investors do influence certain housing markets, they aren’t buying up all the homes like social media makes it seem. The truth behind why homes feel so costly runs deeper—and it starts with simple economics: not enough homes for all the people who want them.

Why This Matters in Sioux Falls, SD

Sioux Falls continues to experience strong growth and relocation demand, especially across neighborhoods like Jefferson Heights, Prairie Hills, and South Prairie. As our population expands, the available housing stock hasn’t kept up.

According to Realtor.com, only 2.8% of all home purchases last year were made by big investors—those who own 50+ properties. That means roughly 97% of homes were bought and sold by everyday people, not corporate giants.

Danielle Hale, Chief Economist at Realtor.com, explains:

“Investors do own significant shares of the housing stock in some neighborhoods, but nationwide, the share of investor-owned housing is not a major concern.”

So, while headlines love to blame investors, the real issue driving prices is much simpler: Sioux Falls doesn’t have enough homes for all the buyers who want to live here.

The Real Story Behind Home Prices

Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), says it best:

“It’s been popular among some to blame investors, but with housing, the economics of that don’t make a lot of sense. The fundamental driver of housing costs is the shortage itself—there’s a mismatch between the number of households and the actual size of the housing stock.”

That’s exactly what we see in Sioux Falls. Low housing inventory combined with steady population growth has pushed prices higher. Whether you’re looking in East Sioux Falls, Tea, or Harrisburg, limited listings create competition, and competition fuels price increases.

As more new construction and resale homes hit the market, affordability will gradually improve—and opportunities for buyers will open up again.

How Amy Stockberger Real Estate Can Help

At Amy Stockberger Real Estate, we specialize in navigating changing markets like this. Through our
Lifetime Home Support™
model, we guide you through every stage—from your first home purchase to long-term wealth building through real estate.

Our clients also gain exclusive access to:

 1. The Home Support Team, featuring trusted local pros for every home need

2. Our VIP Club, with free access to moving trucks, tools, and event rentals

3. Personalized strategy sessions to find (and afford) your next home in Sioux Falls

Ready to Take the Next Step?

If you’re curious about what’s really driving prices—or what homes are currently available in your ideal area—let’s talk. Our team is here to help you make sense of the data, find your perfect home, and build wealth through real estate.

Because buying a home in Sioux Falls, SD isn’t just about getting the keys—it’s about living supported for life.

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