South DaCola

Wages not keeping up with housing costs

As you will see, this isn’t just happening in Sioux Falls and South Dakota, but across the nation;

Of the roughly 420,000 South Dakota jobs classified by the U.S. Department of Labor, several sectors dominate. About 63,000 jobs are in office support positions, another 47,000 in retail sales, about 42,000 in food preparation and service, 17,000 in grounds maintenance, 15,000 in personal care and service and 11,000 in health care support. South Dakota is routinely among the top states in percentage of residents who hold more than one job.

But what is that statistic? I have often wondered where to get that.

In the Sioux Falls metro market, inflation-adjusted median household income fell by 4.5 percent from 2008 to 2015; in the city of Sioux Falls, it fell by 8 percent over that time frame. Meanwhile, the number of households making $15,000 to $25,000 a year in Sioux Falls jumped by 50 percent during that period.

It’s really the middle-class income that hasn’t really changed at all.

That the housing shortage for low-income residents is worsening in Sioux Falls. The study notes that for every 100 families making 30 percent or less of the local median family income, only 39 affordable housing units are available.

I have often argued that Sioux Falls is growing too fast, growth for growth’s sake essentially. I was watching a news story last week where they were training middle school kids how to build houses. Really? While I don’t have a problem with industrial arts (I took 3 classes in school, drafting, wood working and construction) I also helped work construction with my brother and dad’s business.

Maybe we just keep building to just build. Sioux Falls really needs to slow it down a bit and concentrate on fixing up core neighborhoods and revitalization, which provides affordable housing. Sprawling out of our limits only drives up infrastructure and housing costs. Making due with what we have with the workforce to do it properly instead of this constant motion of ramrodding development.

We really don’t have a housing issue, we have a wage issue.

Exit mobile version