11 South Dakota Towns That Make Retirement Affordable

When it comes to South Dakota, few words describe it better than "affordable." With its many natural and scenic attractions, such as Mount Rushmore and the Badlands, it is no wonder that so many who visit the state eventually decide to make a permanent move to South Dakota. Especially when it comes time to retire.

South Dakota is one of the best states to retire in. It is tax-friendly and doesn't require residents to pay state income tax, reducing stress for retirees, many of whom are on a fixed income. With a median home value of $309,000 (according to Zillow), it is unsurprising that South Dakota is an attractive draw for budget-conscious retirees.

This midwestern state also has a wide variety of activities for retirees to fully enjoy their golden years. From natural wonders to cozy, friendly communities with plenty to do, South Dakota has no shortage of enjoyment for retirees. Below, discover the most affordable, retirement-friendly towns in this amazing prairie state.

Aberdeen

Nicknamed "Hub City" for its plethora of attractions, Aberdeen sits in the eastern part of the state. Foot Creek flows along the town's western edge. Aberdeen's median home value is $232,000, making it an affordable option for retirees seeking a budget-friendly retirement.

But the home prices aren't the only draw. Aberdeen has many attractions, including the Aberdeen Recreation and Cultural Center Gallery, where locals can submit their artwork for display. It is perfect for retirees looking to express themselves through creative media. There are several art galleries in Aberdeen, including Midwest Nice, Red Rooster Coffee House, and Museum Galleries at Dacotah Prairie Museum. The Kuhnert Arboretum provides scenic walks and a better understanding of South Dakota's native flora, especially during the spring and summer, when the many local plant species are in full bloom.

Aberdeen has a population of around 27,000, making it an attractive retirement community for retirees who love prairie life but still want the conveniences and liveliness of a large town.

Yankton

Located just north of the South Dakota/Nebraska border, Yankton has a median home value of $268,000 and a population of about 16,000. The Lewis & Clark State Recreation Area is one of the town's biggest draws and offers plenty of outdoor recreation, including boating, fishing, birdwatching, hiking, and more. Another of Yankton's signature landmarks includes the Meridian Bridge, which offers scenic views and walking paths along the Missouri River. The Gavins Point National Fish Hatchery is a popular attraction for locals and visitors alike, providing expansive grounds for relaxing strolls and picnics.

The Dakota Theater is the town's local performing arts center, with a variety of shows that retirees will enjoy. Other attractions include the NFAA Easton-Yankton Archery Center, advertised as the world's largest archery center, which offers exercise and community for retirees and visitors of all ages. The Summit Activities Center is a great place for retirees to socialize and attend classes at the pool or fitness center.

Vermillion

Located in the southeasternmost corner of the state, Vermillion is nestled alongside the Missouri River, which divides South Dakota and Nebraska. Its population of just under 12,000 residents and its median home value of $265,000 make Vermillion a solid retirement option in South Dakota. Due to its proximity to many state parks and natural landmarks, Vermillion is an ideal location for those seeking scenic views and warm, small-town vibes.

The North Alabama Bend Wildlife Area showcases many native species, including bison, prairie dogs, and pronghorn. The Spirit Mound Historic Prairie, located just north of Vermillion, honors the region's sacred Native American history. But during the cold weather, Vermillion offers many indoor attractions for retirees, such as the National Music Museum and DakotaDome Stadium.

Huron

Huron's median home value is $168,000, making it among the most affordable options in the state. It has a population of just over 14,000, giving it a small-town feel with plenty of convenience most often found in much larger cities. Located among the state's famed wetlands, Huron sits just east of several waterfowl reserves, such as the Maga-Ta-Hopi Waterfowl Production Area. Retirees can look forward to birding in the wetlands, where they can spot several native bird species, including the snow goose, trumpet swan, and blue-winged teal.

In town, the South Dakota State Fair is always a festive attraction, and the Dakotaland Museum proudly showcases all that makes Huron and the surrounding areas great. The World's Largest Pheasant is a large statue of the eponymous bird that showcases the region's dedication to wildlife management.

Watertown

Lake Kampeska is one of Watertown's primary attractions, offering opportunities for boating, fishing, and scenic shoreline walks. Watertown's median home value is $298,000, putting it below the state's average. Sandy Shore Recreational Area offers a relaxing atmosphere for camping and fishing, making it perfect for anglers.

Watertown is home to the Redlin Art Center, which features the art of renowned wildlife painter Terry Redlin. Retirees will enjoy the relaxing walking paths near the Kemp Avenue Bridge.

For golf enthusiasts, Watertown has two main golf courses. Located on the shores of Lake Kampeska, Cattail Crossing Golf Course is a family-friendly, 27-hole course that's perfect for a peaceful game or a weekend on the green with the grandkids. Prairie Winds Golf Club is an 18-hole golf course ideal for retirees seeking a quiet, relaxing game.

Madison

When it comes to small-town fun, it doesn't get much better than Madison. This town's median home value is $256,000, a good deal, especially if you consider the scenic banks of Lake Madison, located just south of the town. Lake Herman State Park offers outdoor recreation opportunities, including boating, fishing, swimming, and relaxing walks along the shoreline. One of the town's main attractions during the summer is Prairie Village, where historic buildings from across the state have been gathered. Iconic buildings include the Lawrence Welk Opera House, one of the nation's only working steam-operated carousels, the Emmanuel Chapel Car, and more.

But outdoor recreation isn't the only fun to be had in Madison. The John Green Art Gallery showcases the award-winning art of local South Dakota artist John Green. Cherry Lanes Pro Shop is a popular place for bowling enthusiasts, especially on rainy (or snowy) days.

Elk Point

Named for its prominence as an elk hunting ground, Elk Point, which has a median home value of $277,000, has a rich history. In 1804, the first election west of the Mississippi River took place in what is now Elk Point's Heritage Park when members of the Lewis and Clark Expedition elected a new sergeant. This event is reenacted every year during the town's Heritage Days. Larry's Archery Barn and Elk Point Swimming Pool are among the many opportunities for retirees seeking to enjoy an active lifestyle. Locals and visitors alike can't go wrong with a coffee or a sweet treat at Union Bean & Co. For something a little more formal but still down to earth, nothing beats dinner at Flannery's Pub.

Mobridge

Mobridge is known for more than its statues, though the town certainly has some impressive ones. The Walleye Up Statue and the Sitting Bull Monument greet visitors and locals to Mobridge, putting this unique and charming small town on the map. With a median home value of $130,000, this town, located along the banks of the Missouri River, is among the most affordable options in the state. Retirees will enjoy the charming nostalgia of the Pheasant Drive-In Theater or a visit to the Klein Museum.

Golf enthusiasts will appreciate Oahe Hills Golf Course, formerly Mobridge Country Club, a scenic 9-hole course located just north of town with breathtaking views of Lake Oahe. Revheim Bay Recreation Area is a short drive south along the river and offers an archery range, a playground, a sand volleyball area, and more.

Chamberlain

The Dignity of Earth and Sky is the most iconic part of Chamberlain, the 50-foot statue visible from both banks of the Missouri River. With a median home value of $230,000, retirees can enjoy the breathtaking scenery of the monument, the river, and the surrounding grasslands while making every dollar stretch. The Lewis & Clark Memorial Bridge spans the river and is a popular photography location. Retirees, as well as kids and adults of all ages, will enjoy learning about the Indigenous people of the region at the Akta Lakota Museum & Cultural Center. For outdoor recreation, the Chamberlain Recreation Area in Oacoma, just across the Missouri River from Chamberlain, is a local favorite, and nearby Wannalain Lake is a fishing pond ideal for anglers seeking rest and relaxation.

Pierre

Pierre has been South Dakota's capital city since 1889. This small city sits along the Missouri River and offers everything retirees would want in a state capital: scenic views, museums commemorating the state's rich history, and a variety of stores and restaurants.

Pierre, SD's median home value is around $287,000, putting it among the most affordable (and least populated) capital cities in the United States. Pierre has just under 14,000 residents as of 2024, but don't let its small size make you underestimate this capital city's welcoming and exciting atmosphere.

Retirees will enjoy catching a movie at State Theatres 1-2-3 movie theater, or an exciting game at Hyde Baseball Stadium. Retirees can also flex their acting skills by joining the Pierre Players, a local performing arts theater. For retirees seeking an active retirement, there are plenty of state parks nearby, such as LaFramboise Island Nature Area, a wildlife reserve located in a lush region alongside the Missouri River that was originally named Good-Humored Island by Lewis and Clark.

Mitchell

Located in the state's southeastern region, Mitchell is about an hour west of Sioux Falls, the state's most populous city, making it ideal for retirees who enjoy occasional day trips to the city. Mitchell's median home value is around $243,000, earning it a solid place among South Dakota's most affordable towns for retirees.

But for those thinking they have to travel to Sioux Falls for excitement and recreation, think again. Mitchell's many attractions include the World's Only Corn Palace, which attracts more than half a million visitors annually, and hosts the Corn Palace Festival and Stampede Rodeo every August. The Mitchell Prehistoric Indigenous Archaeological Site and Museum is home to a 1,000-year-old archeological site, where visitors can explore a recreation of a Native American village and watch archeologists uncover artifacts that are then preserved and displayed at the museum. Retirees will also enjoy making community connections at classes at James Valley Community Center, which offers everything from wellness education to quilting and board games.

Why Retire In South Dakota? Affordability, Culture, And Community

South Dakota's vast prairie wilderness has a lot to offer retirees. The towns on our list include some of the most affordable places for budget-conscious retirees, as well as attractions ranging from the absurd (like The World's Only Corn Palace) to the breathtaking (like the Badlands and Black Hills).

While all retirees are different, the things that matter most in choosing a place to retire are community, entertainment, and a high quality of life. For those seeking a slow pace and a simpler scene, places like Gettysburg, Chamberlain, and Belle Fourche are ideal due to their small populations. For retirees who want city convenience and a variety of activities, larger towns like Yankton and Pierre might be best.

No matter what hobbies and interests they have, retirees of all stripes will find something for them on our list.