Move to Liberty: The Case for South Dakota

CATO annually ranks all fifty US states in terms of freedom. South Dakota has held the #3 spot for 3 years running, third only to New Hampshire and Florida. Even before that — for 22 years — it never ranked below #6.

Moreover, among the freest states, South Dakota stands out as a freedom bargain. As can be seen in the chart below, it’s the only state in the US that ranks in the top ten for both liberty and affordability. Anyone looking for a better life in a freer place should look closely at this state.

What’s so free about South Dakota?

Per Cato, not only does South Dakota have no state income tax but it has one of the lowest overall tax burdens in the country. Additionally, the state’s regulatory policy ranks third out of the fifty states and has even improved slightly the past few years. The low regulatory burden includes high scores on land use freedom, eminent domain reform, strong health insurance freedom, nursing practice freedom and insurance freedom.

“The state is mercifully free of a variety of other cronyist entry and price regulations, including a certificate-of-need law. The state’s civil liability system is above average and has improved over time.”

Additionally, it’s a right-to-work state and has constitutional carry. Regarding education, “private school and homeschool regulations are not as burdensome as those of the neighbor to the north, and the legislature enacted a limited private scholarship tax benefit in 2016.”

Libertarian comedy songwriter Remy put some of South Dakota’s relative advantages to music.

In other respects, is South Dakota a good state to live in?

South Dakota is ranked better than average for quality of life by US News (#12 out of the 50 states), DataPandas (#15), and WalletHub (#21). It generally gets points for a stronger economy, affordability, and quality education. Additionally, if you enjoy the outdoors, much of the state still has a rugged Western vibe, with plenty of opportunities for hiking and exploring local history.

You can find lists of the better areas within South Dakota in Stacker, Niche, MoneyInc, and AreaVibes. For what it’s worth, there were six cities that these lists had (mostly) in common: Brooking, Brandon, Vermillion, Sioux Falls, Harrisburg, and Madison. A more granular way to find not just good cities but good specific neighborhoods within cities is Niche.

South Dakota has a serious winter, but it’s not as cold as many other states such as Minnesota, Wyoming, and Wisconsin, and it actually has more sunny days than Florida. Still, to be happy in the state you need to be comfortable with snow.

Family paradise: Only one parent needs to work

To be clear what I mean when I say affordability, the ratio of median home price to median income for the US as a whole is currently 5.8; that’s up from 3.5 in 1984. Over the last few decades, home prices have gone up much more than incomes. Young homebuying couples now typically both have to work to afford a mortgage. That in turn has made it difficult to raise a family.

Not so in South Dakota.

For instance, in Brandon, SD — one of the most desirable cities in the state and recommended as very livable, with a crime rate 91% lower than the US average and just 2% unemployment — the ratio is 3.4. This means that for a couple with dreams of having one parent work and one stay at home with the kids, in a nice neighborhood with good schools, it’s actually possible here.

There are, of course, other similarly affordable states, but as mentioned above, South Dakota is only state in the US that ranks in the top ten for both liberty and affordability.

How does it compare to other free states?

The two states that rank higher than South Dakota in overall liberty are New Hampshire and Florida.

On the question of liberty alone New Hampshire is inescapably #1. The structure of New Hampshire’s state government and the character of the population, combined with the most active state libertarian group in the country — by far — makes it pretty unbeatable in that regard.

Florida ranks #2 in freedom, per Cato, and has some of the best weather in the country. Additionally, the state has benefited from a wave of incoming red voters and now is on very solid ground in terms of retaining its liberties.

However, while these are two highly desirable states, neither are cheap — New Hampshire ranks #36 in affordability and Florida ranks #38. If you’re looking to move to a freer state but need to do so on a budget, or dream of having a traditional family with one parent staying at home dedicated to the kids and maybe even homeshooling, there’s a very good case for South Dakota.

Recommended video: a summary of South Dakota’s advantages

This is a pretty fair read on the state, offering ten good reasons to move there.