Regardless of the area of South Dakota from Sioux Falls to Rapid City, from Aberdeen to Watertown and everywhere in between there has been a dramatic increase in the number of foreclosure homes in the state. This increase in defaulting mortgages has been caused in large part by the mortgage meltdown and the global financial collapse that followed it.
Before buying a foreclosure home or any type of investment real estate in South Dakota it is important to understand the economy of the state in order to make the best educated decision possible. Important statistics are population, location, unemployment and finance and economy of the state.
In addition to the financial situation worldwide, South Dakota also has the added disadvantage of having a very narrow economy which relies on only three sectors in order to drive revenue. Agriculture, a long term component to South Dakota has historically led the economy but has recently been surpassed by two other industries. The service industry and Tourism have both outpaced agriculture in recent years. Retail, finance and health care are the key anchors to the service industry while Mount Rushmore, the town of Deadwood and Sturgis are the anchors of the tourism in the state.
The second largest employer in South Dakota is Ellsworth Air Force Base with over eight thousand residents of the base which rests 10 miles outside of the city of Rapid City, South Dakota and straddles two South Dakota counties. South Dakota is the only state that lists a military installation as the second largest employer which is a testament to the size of the state economy. South Dakota has the fifth lowest gross state product in the nation at 37 billion dollars annually.
Unemployment figures are very important to real estate investors and foreclosure buyers in every state and especially in South Dakota. South Dakota is among the lowest in the entire country. This extrememly low unemployment percentage is a reflection of the very small number of residents and the steady, low growth economy of the state. The population is the fifth lowest with under 1 million citizens in the state that is the 17th largest.
This means that if an investor is determined to buy a foreclosure that investor must contain their search to Sioux Falls, Rapid City and a handful of small cities that can support a quick resale or rent out of the of the investment property. To venture outside the main areas of population of a state that is sparsely populated could spell disaster. Ellsworth AFB has been in existence since 1942 and is such as strong driver of the economy that buying homes within a 30 minute drive from the front gate will prove to be a wise bet very soon.