Home Values in Watertown, South Dakota — 2026 Market Report
Updated March 2026 | Seller's Market | +3.2% YoY
The median home value in Watertown, South Dakota is $235,000 as of March 2026, which is below the national median of $400,000. Home values in Watertown have increased by 3.2% over the past year and 17.1% over the last five years. With a population of 22,655 and a median household income of $48,250, the price-to-income ratio stands at 4.9x, making Watertown affordable for the average household.
Watertown Housing Market Conditions
| Metric | Watertown | National Avg |
|---|---|---|
| Median Home Value | $235,000 | $400,000 |
| YoY Appreciation | +3.2% | +3.8% |
| 5-Year Appreciation | +17.1% | +22.4% |
| Price per Sq Ft | $89 | $222 |
| Days on Market | 43 days | 45 days |
| Months of Supply | 2.8 | 3.5 |
| List-to-Sale Ratio | 101.9% | 98.5% |
| Monthly Homes Sold | 21 | — |
| Foreclosure Rate | 0.34% | 0.3% |
Home Value Trends in Watertown
A homeowner who purchased at the median price of $200,683 five years ago in Watertown would have gained approximately $34,317 in equity, representing a 17.1% return on investment. Over the past year alone, the typical homeowner gained $7,287 in home equity.
Affordability in Watertown, SD
With a median household income of $48,250 and a median home price of $235,000, the price-to-income ratio in Watertown is 4.9x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $1,463 compared to estimated monthly ownership costs of $1,355 gives a rent-vs-buy ratio of 0.93. In Watertown, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Watertown
The effective property tax rate in South Dakota is 1.22%. On a home valued at $235,000, the estimated annual property tax bill is $2,867, or approximately $239/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Watertown is 85.5 (100 = national average), indicating living costs are below the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Watertown, SD?
The median home value in Watertown, South Dakota is $235,000 as of March 2026. Home values have changed +3.2% over the past year, with a 5-year appreciation of 17.1%.
Is Watertown a buyer's or seller's market?
Watertown is currently a seller's market with 2.8 months of housing supply. Homes spend an average of 43 days on market, and the list-to-sale price ratio is 101.9%. Low inventory gives sellers an advantage.
Are home values going up in Watertown?
Yes, home values in Watertown have increased by 3.2% over the past year. The 5-year appreciation rate is 17.1%, meaning a home worth $200,683 five years ago is now worth $235,000.
Is it better to rent or buy in Watertown?
The average monthly rent in Watertown is $1,463, while estimated monthly homeownership costs are approximately $1,355. The price-to-rent ratio is 13.4. Based on current conditions, buying may be more cost-effective than renting in this market.
Home Values in Other South Dakota Cities
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Disclaimer: Home value data for Watertown, South Dakota is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.