Is downtown Sioux Falls an affordable place to live? Depends on what you call ‘affordable.’

With Sioux Falls housing prices at all-time highs and no sign of them coming down, many are choosing to turn to apartment living. New apartment buildings seem to be going up in every neighborhood, especially on the outskirts of town as the city expands.

There are also new developments like The Steel District and Cherapa Place going up downtown, which will add to the estimated 2,900 people who already live there, according to Census data. But the proposed Riverline District, which would expand downtown to the east, has had some Sioux Falls residents concerned about gentrification in the area.

For those who already live downtown, the consensus seems to be that the cost isn’t all that higher than elsewhere in the city, but as Sioux Falls continues to grow, is that really the case for the nation's 121st largest city?

Earlier: Is downtown Sioux Falls getting too expensive with all these new developments? Not necessarily.

According to Apartments.com, as of September, the average apartment rent in Sioux Falls is $845 for a studio, $930 for one bedroom, $1,129 for two bedrooms, and $1,443 for three.

The Argus Leader calculated the average and median rent prices in different parts of the city this spring, using a map and Apartments.com. The findings were broken up into six areas: northwest, southwest, southeast, northeast, central (which includes downtown), and just downtown Sioux Falls.

How does one define affordability in Sioux Falls?

The website for Downtown Sioux Falls (DTSF) says the city has an "affordable downtown," and that a family making a median income of $59,621 will spend about 40% on housing and transportation for this part of the city.

But the U.S. Department of Housing and Urban Development defines affordable housing as costing less than 30% of a person’s gross income.

For the average apartment in Sioux Falls to be affordable, the person would need to make $3,087 a month before taxes for a one-bedroom and $3,740 for a two-bedroom, based on the average rent in Sioux Falls.

Brent Tucker, the director of housing development for Affordable Housing Solutions (AHS), provides affordable housing options and resources for those who qualify under state HUD’s income guidelines.

More: Availability, cost and size among biggest challenges Sioux Falls renters face in 2023

But to qualify for a Section 8 housing voucher, the family’s income cannot exceed 50% of the median income for the area, which in Sioux Falls is $66,761, according to current Census data. That means those with Section 8 assistance can’t make more than $33,380, and their monthly gross pay is $2,781 or less.

“There are a lot more people that are applying for Section 8 or rental assistance than ever before,” Tucker said, adding the waitlist for a voucher is two years.

South and central Sioux Falls competing for highest rents

Rental assistance amount is also broken down by area code, Tucker said, and the 57108 area code now has the highest payment standard. The 57108 covers the southern part of Sioux Falls, below 57th Street. Tucker said rent tends to be higher there because of the new construction. So far, that’s the only area code with a higher assistance limit.

But according to Argus Leader calculations, downtown Sioux Falls has the widest range when it comes to average rent prices, and this makes it more expensive than southern Sioux Falls when looking at two-bedroom apartments.

By an Argus Leader calculation, it's $935 for a one-bedroom and $1,707 for a two-bedroom. The median, however, is $1,021 for a one-bedroom and $1,550 for a two-bedroom downtown.

Compared with other parts of the city, the average one-bedroom rent price for all of central Sioux Falls is $1,004; for northwest, $983; for southwest, $1,018; for southeast, $1,085; and for northeast, $1,110.

More: The newest Sioux Falls Cherapa building opens soon. Here's how the project is taking shape

The average two-bedroom rent price for central Sioux Falls is $1,469; for northwest, $1,202; for southwest, $1,201; for northeast, $1,353; and for southeast, $1,408.

The highs and lows of downtown rent prices

Jade Visker has lived at the Phillips Avenue Lofts for several months now, and she loves the draw of living downtown. When she began her apartment search last year, she looked in other parts of the city, but ultimately decided to remain downtown.

“It may be a tad bit more expensive, but it was still pretty comparable to the other places I was looking at, actually,” she said.

According to the Phillips Avenue Lofts’ website, a one-bedroom apartment can range from $1,456-$2,371, and a two-bedroom is upward of $1,941, which is higher than both the average and the median rent downtown.

A simple search on the AHS website brings up apartments and rentals between $354 and $970 a month, but few (if any) of those options are in downtown Sioux Falls.

The YMCA and the Minnesota Apartments in central Sioux Falls are both considered low-income apartments, according to Apartments.com, and the Irving Center Apartments on Spring Avenue are also for income-qualified residents.

That’s where Jayden Delle lives. And while she doesn’t mind her place, she wishes she had more options.

“I like living downtown, and since I work here (downtown), it’s nice,” she said. “But anywhere else here a one-bed is over $900. If I had a car, I might be able to find somewhere else that’s cheaper in other parts of Sioux Falls. But for now I guess I’ll just stay.”

Exciting downtown makes the price worth it for some

“Five-10 years ago, I’d say it was too expensive. But with everything they’ve added in recent years, it’s worth it,” said resident Nate Bixby, who lives in the Railyard Flats on the east side of the river, which are also on the upper end of downtown apartment prices.

Bixby grew up in Sioux Falls but has lived in places like Denver and Chicago. He said downtown might be a draw to people moving in, since they’re comparing prices to larger markets, but there are still those already living in Sioux Falls who are willing to pay the prices.

More: The Steel District office tower opens soon. Here's how the project is taking shape

Downtown resident Michele Wellman admits where she lives is expensive. She has a condo at Washington Square, and the condos were selling for $1.2 million in 2017, much like how the new condos at Cherapa Place are selling for more than $1 million, according to data from the Minnehaha Country Equalization Office.

Wellman grew up in Boston, however, and she and her husband also have a place in the Black Hills. They like the close-community feel and the dog-friendliness of downtown Sioux Falls. While cost isn’t an issue for Wellman, she said she hopes in the future, there will be more availability in the lower price range so anyone can live downtown.

“I can understand people’s frustration," Wellman said. "They want to be downtown. There’s a lot to do downtown, but even the restaurants can be pricey. Hopefully, as downtown grows, there will be more options for everybody, and hopefully those frustrations will turn to excitement.”

This follows the sentiment of Pendar Properties’ Anne Haber, who told the Argus Leader in February that what the city is seeing right now is short-term.

“I think all of this new construction can sometimes be perceived as luxury and upscale, but I don’t think it’s always the case,” she said at the time.

DTSF President Joe Batcheller further told the Argus Leader that same month this growth and cost is simply a snapshot in time, adding offerings downtown will continue to evolve as time goes on.

But for now, while it may not be affordable to many, the answer to whether downtown is worth the expense remains up to the individual, and the question can be asked no matter which part of town one lives in.

This article originally appeared on Sioux Falls Argus Leader: How much does it cost to live in downtown Sioux Falls? Is it affordable?