It seems like a contradiction. South Dakota is full of land, and yet, people can’t find enough houses to fill the need. But the problem isn’t space, per se. The problem is inventory.  With historically low-interest rates and a shortage of home inventory, a construction boom is among us.

The rush to build new houses is influencing the market… a lot. If you or your loved ones are ready for a new house, here’s why building may be your best bet.

What’s Happening Right Now?

South Dakota is the 4th most desirable state to live in right now. With plenty of job opportunity, low taxes and low living expenses, migration to South Dakota is high. This is influencing the already sparce housing market.

Why You Should Build

There are perks of being the first owner. Currently, the best reason for building a house is to avoid the bidding war. Homes are selling fast and that’s making the competition fierce. Homes are selling for more than usual, and a lot of people are on the losing side of a bidding war. You don’t need to worry about the stress that comes with placing a bid.

Another advantage of building a home is that you get what you want. Building gives you the opportunity to customize and personalize your home as much as you want. Creating the layout, picking the colors, choosing the appliances, it’s all in your hands.

Work with a Professional

We talked with industry experts to help explain what to do in this type of housing market. According to Danielle Konechne with Fisher Sisters Real Estate, “If you plan to build, hire a professional that has the resources to help you get there as quickly as possible. People are working hard to build homes and more lots are coming up.”

In such a shortage of available homes and building lots it may take some extra searching to find something. Patience is key when it comes to building. Not everything comes up on the multiple listing service. Reach out to a realtor, they’ll truly be your best bet at finding you a home.

“I cannot recommend enough that you interview potential builders, look at houses to get good ideas and educate yourself. It’s a fast-moving market. You’ve got to be prepared. Get a good realtor and a good lender.”

Securing Your Loan

Whether you’ve already talked to your builder or your banker, the best strategy is to start the home construction process with financing in mind. It’s important to fully understand the costs associated with constructing and purchasing a new home. You’ll want to determine who is going to carry the construction loan.

The American Bank & Trust mortgage team has guided numerous families through the construction process. This goes beyond just financing but deals with strategy as much as capital. Rates are good right now, we never know what the future is going to look like, so be sure to capitalize on a great rate with American Bank & Trust.


Right now, a mortgage with American Bank & Trust can help open the door to your new home. If you live in the Sioux Falls area, for a limited time we’ll give you $750 to help pay for moving expenses. Make the move to AB&T today.

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