Watertown, SD—57201
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Watertown, SD
As of Oct '25, the median home price in Watertown, SD is $314,000, with a year-over-year change of -1.9%. This indicates that home prices in Watertown, SD are decreasing. According to Zillow, the 1-year price projection is 1.0%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $314,000 | -1.9% |
| Single Family | $313,000 | -2.2% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | N/A | N/A |
3 Bed | N/A | N/A |
4 Bed | N/A | N/A |
| 5 Bed | N/A | N/A |
% of Housing Stock
Rental Trends — Watertown, SD
As of July '25, Rentcast reports the average rent in Watertown, SD is $1,260, with a year-over-year rent change of 23.5%. Per bedroom, the median rent as of July '25 in Watertown, SD is studios: $2,060, 1-bedrooms: $851, 2-bedrooms: $1,340, 3-bedrooms: $1,350. The most common rental property sizes in Watertown, SD are 2-bedroom and 1-bedroom, accounting for 48.5% and 25.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,100 | $1,260 |
| Studio Rent | $595 | $2,060 |
| 1 Bed Rent | $730 | $851 |
| 2 Bed Rent | $1,200 | $1,340 |
| 3 Bed Rent | $1,350 | $1,350 |
| 4 Bed Rent | N/A | N/A |
% of Rental Stock
Property Listings — Watertown, SD
As of Oct '25, Realtor.com reports that the median days on market for a home in Watertown, SD is 73. This is a increase of 20.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 14.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $339,000 | -5.0% |
Listing Count | 129 | 12.0% |
| Listings as % of Homes | 0.4% | 12.0% |
Days on Market | 73 | 20.0% |
Demographics — Watertown, SD
As of the latest ACS Survey released in 2023, Watertown, SD has a population of 26,400, which has increased by 4.3% over the past 5 years. Watertown, SD is a moderately popular place for families, as children make up 23.2% of the population. The area has a poorly educated workforce, with 21.3% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 5.9% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 26,400 | 4.3% |
% Under 18 | 23.2% | -1.7% |
% Seniors | 18.7% | 10.7% |
% WFH | 5.9% | 22.9% |
% w/ College Degree | 21.3% | -4.9% |
As of the latest ACS Survey released in 2023, Watertown, SD is a predominantly white area, with 90.5% of the population identifying as white. The white population has shrunk by 2.5% in the last 5 years. The second most common race or ethnicity in Watertown, SD is hispanic, making up 3.1% of the population. Foreign-born residents account for 1.2% of the population in Watertown, SD, and this percentage has decreased by 20.0% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 90.5% | -2.5% |
% Black | 1.1% | 57.1% |
% Hispanic | 3.1% | 29.2% |
% Asian | 0.6% | 20.0% |
% Foreign Born | 1.2% | -20.0% |
Mortgage and Risk — Watertown, SD
According to HUD data as of 2023, there were 399 mortgage originations in Watertown, SD, of which 77.0% of loans were conventional mortgages. The average loan-to-value was 59.0%, with 27.0% above 90% LTV (very high). This implies large mortgage risk in Watertown, SD. Investor activity is low, as 1.0% of loans were by investors. 10.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 399 |
% Conventional Loans | 77.0% |
% Government Loans | 23.0% |
% Investor Loans | 1.0% |
% Second Loans | 3.0% |
% Cash Out Refinance | 10.0% |
Loan Activity
Rentals and Section 8 — Watertown, SD
Watertown, SD lacks sufficient Section 8 program data for analysis.
Section 8 Market Size
Total Units under HUD | 594 |
Total Units Section 8 | 491 |
% Rentals under Section 8 | N/A |
% Occupied Section 8 | 88.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $30 | $730 | $760 |
| 2 Bedroom | -$200 | $1,200 | $1,000 |
| 3 Bedroom | -$80 | $1,350 | $1,270 |
| 4 Bedroom | N/A | N/A | $1,600 |
Affordability — Watertown, SD
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 4.8 |
| Median Home Price | $314,000 |
| Median Household Income | $64,800 |