January, 2023 - Ferguson Appraisals LLC

The Wyoming hotel market consists of approximately 475 properties, totaling approximately 29,000 rooms. Notably, the market is characterized by its small hotels, with an average of around 61 rooms per building—significantly below the U.S. average of 89 rooms per building.

Cost-effective accommodations are prevalent, with over 55% of the rooms falling into the Economy or Midscale categories. The trailing 12-month occupancy rate stands at 56.5%, below the national average of 63.0% for the same period. Although Wyoming initially experienced the impact of COVID-19 with an annualized occupancy drop to 42.3%, its recovery has been slower compared to other hospitality markets. However, RevPAR and ADR have increased drastically throughout much of the state over the last few years.

Market data is compiled by Ferguson Appraisals, LLC

The residential real estate market in Rapid City, South Dakota, has seen strong activity, driven by both local and out-of-state buyers. Factors contributing to this trend include the city’s scenic location near the Black Hills National Forest, Mount Rushmore, Crazy Horse and Sylvan Lake.

The Black Hills area of South Dakota offers affordable cost of living, and strong job market. Over recent years, Rapid City has experienced a sharp rise in home prices, reflecting a nationwide trend of increasing demand and limited housing supply. New construction has been underway, but inventory remains relatively tight, making it a competitive market for buyers. This is especially true for entry-level home buyers.

The market has also seen a mix of single-family homes, townhomes, and rental properties, with a growing interest in suburban and rural areas just outside the city. Overall, Rapid City’s residential real estate market is expected to remain active, with steady demand driven by lifestyle preferences, employment opportunities, and the region’s appeal as a desirable place to live.

Key residential statistics indicated by the local MLS indicate the following: 2024 (YTD) sales indicate a change in year-over-year average sale price of 5%. The change in year-over-year median sale price is 2%. The median annual percentage change in sale price over the last four years is 9% per year. The total sales volume in 2023 was $773,278,397 compared to the previous year’s total sales volume of $916,768,663. The 2024 (YTD) quantity of residential sales equals 1239. The quantity of sales in 2023 equaled 1993. Median days on market have ranged from 5 days to 9 days, based on the MLS data. Please note that current year statistics are incomplete.

Prices increased drastically during 2020 with low interest rates and pent-up demand for housing. Sales of homes in the area are typically purchased with conventional, FHA or VA financing with limited negotiating. The most predominant exposure period is two months or less with the median sale price being 97% of the list price.

For more detailed insights, feel free to reach out to Dustin Ferguson for the latest trends. Attached is the latest trends report created by Ferguson Appraisals, LLC.

Archives January 2023

Wyoming Hospitality Market Report 2024

Black Hills Residential Real Estate Report 2024