Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between South Dakota and Washington. 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 Washington. 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 $1,844/month ($22,128/year) compared to Washington, based on median home prices with identical loan terms.
South Dakota offers meaningfully lower home prices than Washington, with median prices running 49% less ($285K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Washington may find South Dakota far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (South Dakota: 1.22%, Washington: 0.98%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Insurance costs favor Washington at $1,600/year versus $2,300/year in South Dakota, a difference of $700 annually. While not the largest cost factor, this adds up to over $7K 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. Washington averages $8K in closing costs (1.4% of purchase price) while South Dakota averages $2K (0.7%). Much of Washington's higher costs come from its 1.78% transfer tax, which adds $10K to the median home purchase. 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. South Dakota's SDHDA First-Time Homebuyer provides Fixed-rate FTB loans, while Washington's WSHFC Home Advantage offers Up to $10,000 DPA. 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 $285K less than Washington on average. That translates to roughly $1,844 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.