The housing market continues to face challenges, but the outlook for 2026 is promising. Nationwide, retail prices for single-family homes have dropped about 15%… Interestingly, rural markets like South Dakota have seen a 3.4% increase, showing resilience compared to the rest of the nation. While material costs have led to slightly smaller home sizes, lumber prices are expected to remain steady. Housing starts declined 8% in 2025 versus 2024, but the Federal Reserve is projected to lower interest rates twice in 2026, which could help the market recover.

Opportunity Zones have become permanent at the federal level, offering additional funding for subdivisions, single-family, and multi-family developments. Every South Dakota community may qualify, but local governments must apply to the governor by July 2026. Interested builders should check with their municipalities to explore these opportunities.

The NAHB Single-Family Builder Committee continues to support the industry through Build PAC, educational webinars, podcasts, and publications. Participation in Build PAC ensures builders have a seat at the table when housing policy decisions are made.

📧 Questions about Opportunity Zones? Contact Dean at dean@hultco.com for guidance.

South Dakota Home Builders Association

In Association With