You might not think of Sioux Falls, SD as a retirement destination, but here are five reasons why it's such a good place to settle down. 

Sioux Falls, the largest city in South Dakota, makes an exceptional travel destination and also an outstanding place to live. Sioux Falls ranks as the No. 1 city in our Most Affordable Places to Retire Awards. When it comes to living a fantastic life on a budget, there’s no place quite like Sioux Falls. examined a variety of factors including average income, average home price, taxes, cost of living, healthcare, walkability, and weather when determining the most affordable places to retire around the country.

Nested on the banks of the Big Sioux River, Sioux Falls rose above all other cities when it comes to affordable retirement destinations. The city shines with small-town charm but also offers residents big-city conveniences, including award-winning hospitals, hundreds of restaurants, 70 parks and greenways, and an easy-to-navigate transportation system that includes Interstate 90 and Interstate 29.

Sioux Falls’ vibrant downtown offers retirees an eclectic art scene plus an enticing array of local restaurants. When active adults want to get away, the Sioux Falls Regional Airport, also known as Joe Foss Field, offers more than 150 weekly flights with 10 direct flight destinations.

Often called “The Heart of America,” Sioux Falls has won the hearts of retirees all over the country. Here are five reasons why Sioux Falls stands out as a gem in the Midwest for affordable retirement living and why the city wins our 2019 Most Affordable Places to Retire Award.

1. Below-Average Home Prices

When active adults are choosing a retirement destination, they want to know they’re getting a good value. They also want to ensure they can afford a home in a 55+ community. In Sioux Falls, they don’t have to worry about staggering home prices – an average home here hovers just above $180,000, which is well below the national median home price of $200,000, according to Clear Capital.

2. A Low Cost of Living

Moving to Sioux Falls means retirees can enjoy a refreshingly low cost of living. According to, the cost of living in Sioux Falls is 95.1. Cost of living indexes are based on a United States average of 100. Since the city comes in lower than 100, active adults can afford more and enjoy a better quality of life in Sioux Falls than in other destinations around the country.

Residents of Sioux Falls enjoy an overall lower cost of living thanks to more affordable groceries, healthcare, housing, utilities, and transportation. Kiplinger reports that the cost of living for retirees in Sioux Falls is 5.8 percent below the U.S. average, allowing active adults on a fixed income to enjoy a good quality of life.

3. Tax-Friendly for Retirees

Another reason Sioux Falls earned our Most Affordable Places to Retire award is the city’s tax-friendliness for retirees. South Dakota is a tax-friendly state overall for retirees, ranked No. 1 by Kiplinger as the best state for taxes in 2018.

With Sioux Falls’ affordable home prices and low cost of living, the city makes a prime destination for retirees. State taxes are important to everyone, but perhaps even more so to retirees, who likely live on a fixed income and must stretch their dollars. Living in South Dakota allows active adults to maximize their retirement savings.

4. Affordable Active Adult Communities

The Midwest offers many ideal places to retire, including appealing 55+ communities right in the Mount Rushmore state. In Eastern South Dakota, retirees can explore exceptional active adult living at The Meadows at Dakota Dunes or The Willows at Dakota Dunes. Both communities, which offer homes starting in the low $200s, feature award-winning golf courses and exciting amenities such as on-site restaurants, pools, patios, and an outdoor bar.

Active adults who are tired of the heat will find respite in a South Dakota 55+ community. Whether they want to savor South Dakota’s spectacular natural beauty or pursue their passions right in their own neighborhood, retirees can savor all that life has to offer in one of the state’s outstanding active adult communities.

5. A High Well-Being Index

Retirees who move to South Dakota are among the happiest and healthiest in the country. The state boasts a well-being score of 64.1 out of a possible 100 on the Gallup-Sharecare Well-Being Index, which examines metrics such as community wellness, social well-being, emotional wellness, and purpose well-being. When they’re overall happier and healthier, active adults spend less time and money at the doctor and more time doing what makes them happy.