Calling all Millennials and Baby Boomers who have children and grandchildren entering adulthood and looking for housing in Rapid City! Your youngsters will not be able to afford a home in Rapid City unless they make more than $53,000 per year, or have a two-person income with a roommate(s), according to the recent Elevate Rapid City 2025 Housing Study. In comparing wages to housing, this study says “Combined with the continued high prices, homeownership is out of range for much of the workforce.”
Yes, you read that right. Considering much of the workforce is in the service, retail, and office administrative industries, the average median income of a single Rapid City working resident is $66,000. This is lower than even our metro area: Custer County, for example, is at $82,000!
Reading all of this made me deeply concerned, but not surprised as we’re a tourist town that prioritizes visitors over community members. Also, we have had an influx of 11,000 people move here since 2020 which increased demand that we have no supply for, which drives up property value. As someone who has housing security, this hasn’t concerned me until recently when our children entered adulthood. When my husband and I bought our first home in 1999, it cost us $54,000. It was small, but in a nice neighborhood by a school. Today, our adult child can’t even afford that same home working a full and part-time job because now, it would list for $250K.
So, what is “affordable” housing anyway? Did you know it’s NOT a term that references low-income families? According to the Federal Government, affordable housing is general housing costs that should amount to no more than 30% of one’s gross income. This includes rent or mortgage payments, fees, and utilities like gas, electricity, water, and internet. So, what this study is saying is that Rapid City doesn’t have much, if any affordable housing available for someone who wants to be a homeowner. The study concluded that the rental market will need to “absorb the demand” for households earning less than $53,000.
Hmmm, the rental market? Are we any better off with our rental supply and cost? What does that look like in our community? According to Rent.com,RentFinder.com,Apartments.com, and others, the average rent for a 1-bedroom apartment runs $1200 per month which equals $14,400 per year; at 30% of one’s income, you need an annual gross income of $48,000. For a 2-bedroom, it’s $1350 per month which equals $16,200 per year; at 30% of one’s income, you need a gross income of $54,000 (and that’s just rent!) So truthfully, a person earning $53,000 per year or more is the only demographic who can afford to rent either. Any earnings below that wouldn’t be able to afford a 1-bedroom apartment without sharing the expense with a roommate. What about those who are single parents, or who are on fixed incomes? As far as supply, according to the same study, 4100 new rental units, or apartments, have been built here since 2022 but not many of them are affordable for the average median income. So where does that leave us?
Rapid City – we have a problem and that is not enough affordable housing. It’s time to get creative and smarter, and more engaged because we’re in a housing crisis. In order to be a thriving, economically stable, and secure city, housing must always be prioritized, affordable, and available. So, Baby Boomers and Millennials, what can we do? How can we and your loved ones have more voice in the decisions and priorities made around housing in our community? I know a group who can help: RCPA – Rapid City People’s Alliance. This is a grassroots group of everyday, working class citizens of Rapid City who want a better life for all community members. They have come together this past year to form a platform for voices like ours who want to see positive change, like more affordable housing. They’ve got momentum like I’ve never seen before, and their vision is to work alongside city officials and decision makers to create policy and opportunity that the people who live and work here really need. I have been impressed with this group, and recently became a member because I believe in what they stand for and I want my adult children to have economic dignity like we did at that age. If you are interested in learning more about RCPA click on link/go to https://rapidcitypeoplesalliance.org or check us out on Facebook or Instagram (search for Rapid City People’s Alliance.) Even if you have secure housing, there are many who do not, so if you want to see this housing crisis resolved become an RCPA member today!
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