Building a Barndominium in South Dakota | Best 2024 Guide

cream white barndominium for south dakota state guide
Teddys Cream White Barndominium via our Barndominium Living group.

If you have been looking at alternative options for building your dream home, you have probably already heard of barndominiums. They have been increasingly gaining popularity alongside other alternative houses like tiny homes and shipping container houses. Barndominiums are a popular choice for many because of the countless possibilities for customization and their cost-effectiveness. We will go through all there is to know before building a barndominium in South Dakota.

Can You Build a Barndominium in South Dakota?

Yes, you sure can! Most of the state is not occupied and has innumerable ideal places to build a barndominium. Additionally, there are contractors who can help you with construction within the state, easing your logistics.

South Dakota Barndominiums Overview

Barndominiums used to be barns that were remodeled into houses. Today, barndominium is a term used for homes that look like barns on the exterior. They are typically made from steel frames. Modern barndo may be made from timber. Sometimes, they are a mix of both steel and wood. People who gravitate towards these types of houses often want to have open spaces around their property for a more rural atmosphere. This is why choosing to build your barndominium in South Dakota might be best for you. If you’re interested in knowing more about these types of houses, you can take a look at our Barndominium 101 Guide.

Advantages and Disadvantages

Before deciding on anything, you should know the advantages and disadvantages of building a barndo in South Dakota.


  • Lower Cost – Barndominiums are cheaper alternatives because they generally use fewer materials. You can also save on the cost of labor by purchasing barndo kits and building yourself. Connect with members of our Facebook group for tips on constructing your barndo.
  • Quicker to build – They require significantly less construction time than traditional stick-built homes. Depending on the design, barndos can be completed in months. This means you can save more costs on your build.
  • Multi-purpose – The beauty of barndominiums is that the huge space can be used for other purposes, such as a workshop, office, or car garage. They can be anything you want. You will see a couple of ideas from others on our Pinterest page. 


  • Limited Financing – Barndos are difficult to finance because they are still not, in a technical sense, considered houses. You might need to look into farming and agriculture lenders instead.
  • Limited Market – Although they are getting more popular, these types of houses do not appeal to the general public yet, so this narrows down the demographic of potential buyers. This is something to consider if you plan on reselling later. 


Permits are required for all types of construction in South Dakota, so you will likely need a permit to build your barndo. Permits are issued by the municipality where the property is located, so ensure you contact your local authority for a complete list of regulations and requirements. Most building permit applications will need basic information about the construction, like the proposed plan and the builders you will be working with. You should also be ready to have information on your build cost because many South Dakotan cities, like Lennox and Yankton, base the permit fee on the construction’s value.


In South Dakota, a property’s tax rate is equal to the sum of all the rates for the tax districts, including school districts, municipalities, and counties where the property is located. This means that barndominium taxes can vary in different locations within the state, so consult with your local taxing district to get them. Note that you can appeal if you disagree with the assessed value of your property. Property owners receive assessment notices yearly on or before March 1st. It is the responsibility of the property owner to check the assessment notice they receive to ensure that the property is listed accurately. 


When building a home in South Dakota, it is always a good idea to protect it financially by getting barndominium insurance. The typical home risks in the state are tornadoes, thunderstorms, and winter storms. It is essential that you get the right coverage in place by discussing these risks with your insurance provider. Bankrate has listed the best home insurance companies in South Dakota.


The best way to alleviate the costs of building your dream house is to get financing help. Below are local financing institutions we recommend for assistance with barndominium financing.


A barndominium in South Dakota is only one example of the variety of projects that BankWest lends money for. They loan for both business and residential construction.

Plains Commerce Bank

Plains Commerce Bank is another option for financing that can help you with your barndo project. They, too, can provide various financing options for agricultural projects and home construction in South Dakota. 


Choosing the right builders to work with can mean a huge difference in the outcome of your project. Go for builders with proven experience in barndominium projects. 

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Reave’s Buildings

They have extensive experience in building barndominiums in South Dakota, making them a great choice to work with. 

Morton Buildings

They operate over 100 construction centers across the country, including South Dakota. If you want to work with a reliable builder with a long history of innovation, look no further.

Custom Structures of South Dakota

Whatever building you’re looking for, especially barndominiums, they got you covered. They promise to cover all your needs.

Rigid Global Buildings

Rigid Global Buildings have experience in building various steel structures in South Dakota and are among the best builders in the state.

We have more recommendations of the top barndominium builders with multiple locations who can build in most states.

Kit Providers 

If you prefer to go the DIY route and save money on labor costs, you can purchase barndominium kits and then handle the rest of the build. Check out our kit provider recommendations below.

Rigid Global Buildings

They are listed as one of the builders above, but they can also provide prefabricated kits. If you’re looking to buy from trustworthy companies, you can’t go wrong with Rigid Global Buildings.

Hansen Pole Buildings

Another huge name in the barndominium kit production is Hansen Pole Buildings. They, too, have a location in South Dakota.

Absolute Steel

Based in Arizona and one of the country’s leading barndominium kit providers. They can ship a kit to South Dakota. 

For additional recommendations on where to get prefab barndominium kits, we have compiled a list of the best kit providers that ship to multiple states across the country.


Typically, barndominiums cost less than traditional stick-built houses. For reference, the average price per square foot of a conventional home in South Dakota is $177. Meanwhile, a barndominium’s cost in Sioux Falls, South Dakota, ​​ranges from $66 to $75 per square foot. It should be mentioned that these are ballpark figures. Barndominium pricing is determined by many factors, like design complexity and the features you want. We also have a barndominium calculator that you can use to check how much your dream barndo might cost.

Where Can You Build a Barndo in South Dakota?

Over the past few years, US individuals have increasingly chosen South Dakota as their residential area. It has fantastic vistas of the well-known Mount Rushmore as well as a business-friendly environment. The state is a terrific place for barndominium living because of the lovely natural scenery and the sparse population. You can look into areas like Brookings, Dakota Dunes, and Sioux Falls to build your barndo.

3 Things to Consider Before Building a Barndominium in South Dakota

Barndominium Lifestyle

Before building a barndo anywhere, you have to consider the lifestyle you will be living. A house is a long-term investment. Are you and your family okay with living the barndo life in the next 10 years?


It goes without saying that budget should be considered before the project takes off. The build plans must be finalized because last-minute changes may mean additional costs.


The materials used for the build will affect your budget. This must be considered as you also need to build a house that can resist the cold winters of South Dakota. Sheathing materials and the type of insulation are things you need to discuss with your builder. 

Is it Worth Building a Barndo in South Dakota?

Building a barndo in South Dakota is absolutely worth it. The small-town atmosphere across the state is ideal for barndo life. Looking at the bigger picture, the pros of building a barndo in South Dakota outweigh the cons. As you are in the planning stages of your project, you can look into our barndominium floor plans for inspiration that would spark new ideas for your build. For a better understanding of barndo construction, we put together an article on the process of building a barndominium. Check it out and start building your own barndo!