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Zip Code 57106

Sioux Falls, SD • Minnehaha County

Real Estate Market Analysis

Q3 2025 Report
$305,000 (Q2 2025, up 4.2% YoY)
Median Home Value
~32,000 (2025 est.)
Population
$68,500
Median Income
B+ (Niche 2025)
School District Rating

Market Statistics

Property Values

$305,000 (Q2 2025, up 4.2% YoY)
Median Home Value
$1,350/mo (Q2 2025)
Median Rent
$185
Price per Sq Ft

Market Performance

Home Appreciation4.2% YoY (2024-2025)
Market VelocityAverage days on market: 29 (Q2 2025)
Foreclosure Rate0.4% (below national average)

Area Information

Area SizeApprox. 13 sq mi
CountyMinnehaha
Primary CitySioux Falls

Housing Profile

Housing Statistics

Total Housing Units~13,500
Owner Occupied62%
Rental Properties34%
Vacant Units4%
New ConstructionModerate, with several multi-family and single-family developments in progress (2024-2025)

Housing Types

Single-family homesTownhomesApartmentsCondominiums

Demographics

~32,000 (2025 est.)
Population
34.5
Median Age
$68,500
Median Income
96.1% (unemployment 3.9%)
Employment Rate
92% high school graduate or higher; 34% bachelor's degree or higher
Education Levels
Mix of families, young professionals, and retirees; average household size 2.4
Family Composition

Education Quality

School District Performance

B+ (Niche 2025)
District Rating
School DistrictSioux Falls School District
Test ScoresAbove state average in math and reading
Graduation Rates89% (2024)

Schools in Area

  • Oscar Howe Elementary
  • Discovery Elementary
  • Memorial Middle School
  • Roosevelt High School

Economic Factors

Employment & Business

Job Growth2.1% (2024-2025)
Unemployment Rate3.9% (Q2 2025)
Business EnvironmentDiverse, stable, with strong healthcare, finance, and retail sectors
Commercial ActivityActive retail corridors, new office and service businesses opening

Major Employers

  • Sanford Health
  • Avera Health
  • Sioux Falls School District
  • Citibank
  • Wells Fargo

Infrastructure & Quality of Life

Infrastructure

Transportation Access

  • • I-29 and I-229 access
  • • Sioux Area Metro bus service
  • • Bike lanes and multi-use trails

Utilities & Services

  • • City water/sewer
  • • MidAmerican Energy (electric/gas)
  • • Waste management

Quality of Life

Safety & Environment

Lower than national average; property crime slightly above SD average, violent crime below national average

Good air quality, moderate traffic, well-maintained parks

Healthcare Access

  • • Sanford USD Medical Center
  • • Avera Heart Hospital
  • • Multiple urgent care clinics

Development Trends

Planned Developments

  • New mixed-use retail/residential at 41st St.
  • Expansion of multi-family housing near Lake Lorraine

Infrastructure Projects

  • • Road widening on 41st St.
  • • Trail expansions

Investment Outlook

Growth Outlook

Steady, with moderate population and housing growth expected through 2027

Investment Opportunities

  • • Multi-family rental properties
  • • Retail pad sites
  • • Value-add single-family homes

Marketing Intelligence

Target Demographics

  • Young families
  • Healthcare professionals
  • First-time buyers
  • Investors

Competitive Advantages

  • Lower cost of living than national average
  • Strong job market
  • Quality schools

Pricing Strategies

Competitive pricing with incentives for quick close or rate buydowns

Common Objections & Response Strategies

Objection: Concerns about rising property taxes

Response Strategy:

Highlight overall affordability and stable tax rates relative to other metros

Objection: Limited inventory in preferred price range

Response Strategy:

Present new construction options and off-market listings

Objection: Perceived lack of nightlife or entertainment

Response Strategy:

Showcase growing dining, retail, and recreation options nearby

Professional Recommendations

1

Leverage local market data to set realistic seller expectations

2

Promote school quality and healthcare access in marketing

3

Network with local employers for relocation referrals

4

Highlight new construction and renovation opportunities to buyers

5

Stay informed on zoning and infrastructure changes impacting inventory and values

Competitive Analysis

Comparable Markets

  • 57103 (East Sioux Falls)
  • 57108 (South Sioux Falls)
  • 57005 (Brandon)

Market Positioning

Appeals to value-conscious buyers seeking amenities and access

Competitive Advantages

  • More affordable than 57108
  • Better access to I-29 than 57103
  • Strong retail and healthcare proximity

Price Comparison

Median home price 10% lower than 57108, 8% higher than 57103

Investment Metrics

5.8% (multi-family, 2025 avg.)
Cap Rates
6.2% gross yield
Rental Yields
18.8
Price-to-Rent
Moderate to strong for well-managed rentals
Cash Flow
3.5-4.5% annual through 2027
Appreciation

Buyer Journey Insights

First-Time Buyers

Strong FHA/VA loan availability, down payment assistance programs, good starter home inventory

Move-Up Buyers

Options for larger homes and new construction, competitive trade-in programs

Downsizers

Townhomes and condos with low maintenance, active adult communities nearby

Investors

Attractive rental yields, stable tenant demand, value-add opportunities

Relocators

Proximity to major employers, healthcare, and easy interstate access

This zip code analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.