Read even further to learn of the astounding increase in income in South Dakota that outshines Florida, Texas and New York! This week, as the state undergoes a population boom — and demographic shift — New Economy reports take a deeper dive into what’s actually behind this otherwise unlikely economic growth.
South Dakota’s Income Surge
Amazingly, the state of South Dakota bucked national trends and household incomes rose.
South Dakota also saw a meteoric rise in income, with the latest information from the Census Bureau showing that the median household income was $81,740 in 2023 — an increase of 17.1 percent since 2022 and reaching an all-time high. In fact, that number put it well ahead of the national average, which grew at a far more modest 4% over the same time frame.
So what’s behind this huge bump in earnings growth in South Dakota? The state has seen an influx of new residents, many with higher-paying jobs and salaries. South Dakota, of all places, even ranks 21st in the nation for a net inflow of $200K+ households, signaling that they’re drawing quite a few high-earners.
There seems to be little question that the huge growth at the top end of the spectrum is driving up median household incomes overall. There is also consistent growth of South Dakota economy with industries like finance, technology and healthcare doing extremely well in the region.
Between: States with Income Drops
While South Dakota has completed an extended improv concerning its radio public income, the same cannot be said for all states. In fact, median household incomes declined in 11 states in 2023.
The biggest casualty was Maryland, with a 9% or $10,500 household income drop. This offload of wealth is being led by an exodus of upper-income residents—2,000+ households making over $200,000 left New York from 2021 to 2022.
Its score has been unchanged since 2017, and not only fell from 33 to number 34 in the infrastructure category but also slipped on business-friendliness beads, according to CNBC’s annual rankings. This is likely part of the reason behind the exodus in wealthier residents as well as the downward migration in median household incomes.
North Dakota | -6% 12-month income change The factors causing North Dakota’s income drop are more difficult to pinpoint, but the state may be wrestling with some unique issues of its own.
The trends in New Hampshire and Texas illustrate the competing economic forces at work around the nation, with some states leveraging particular advantages buoying growth while others battle unfamiliar pressures. As policymakers and economists look to make sense of these changes, they will be looking for the reasons behind this new trend and ways to best drive more evenly distributed and lasting economic progress across the country.
Conclusion
The South Dakota income explosion is a stunning narrative counter to federal tendencies. Most states are seeing lackluster growth or drops in household incomes, but wealthy newcomers have flooded South Dakota and lifted it to a stunning 17.1% median income increase from just one year ago. Growth has serious economic implications in the state, plus far-reaching consequences for (e.g., transit, real estate and lifestyle). While some may look at the recovery of a small state (South Dakota has only 884,659 residents) as unredemptive for an entire country wracked by structural and systemic problems, South Dakota’s victory is admirable because it shows that targeted growth can work and states have capacity to depart from national norms.
