Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Hawaii and South Dakota. Updated for 2026.
South Dakota wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $295K and lower overall costs, South Dakota offers meaningful savings compared to Hawaii. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in South Dakota saves you approximately $3,046/month ($36,552/year) compared to Hawaii, based on median home prices with identical loan terms.
There's a dramatic price gap between these two states. Homes in South Dakota cost 64% less than in Hawaii — that's a difference of $535K on the median home. For buyers relocating from Hawaii to South Dakota, this can mean upgrading significantly or pocketing substantial savings. The equity you've built in a Hawaii home could fund a much larger down payment in South Dakota, potentially eliminating PMI and reducing your monthly payment dramatically.
Hawaii has a moderate property tax advantage at 0.28% versus South Dakota's 1.22%. While the rate gap of 0.94% may seem small, it translates to an annual difference of approximately $1,275 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $10K in savings.
Insurance costs favor Hawaii at $1,200/year versus $2,300/year in South Dakota, a difference of $1,100 annually. While not the largest cost factor, this adds up to over $11K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. Hawaii averages $12K in closing costs (1.5% of purchase price) while South Dakota averages $2K (0.7%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Hawaii's HHFDC Hula Mae Program provides Below-market rate mortgages, while South Dakota's SDHDA First-Time Homebuyer offers Fixed-rate FTB loans. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: South Dakota homes cost $535K less than Hawaii on average. That translates to roughly $3,046 less per month in total housing costs if you choose South Dakota. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.