South Dakota Native Homeownership Coalition Appraisal Market Study
Project Profile
Client:
South Dakota Native Homeownership Coalition
Project Time Frame:
Aug. 2020 - Feb 2021
Core Services:
Primary data collection (surveys, interviews)
Secondary data collection (data from federal, state, tribal, and other local sources)
Market study of appraisal services
Click on the above image to open a PDF of the report
Project Description
The Appraisal Market Study was commissioned by the South Dakota Native Homeownership Coalition (SDNHC) to describe the market for home appraisals on the nine Indian reservations in South Dakota and enable appraisers to evaluate the potential business opportunities available to them on reservation lands. Big Water Consulting used existing, available data from federal, state, and Tribal sources and interviewed and surveyed appraisers, lenders, Native Community Development Financial Institutions (Native CDFIs) and Tribally Designated Housing Entities (TDHES) to help determine the composition, size, value, and growth for valuation services on reservations within South Dakota.
Overall, Big Water found that the market for home appraisals, as well as agricultural and commercial appraisals, on Indian reservations in South Dakota, while not as large as other urban markets, is consistent, relatively robust, and steadily growing. At the time of the study, Big Water found fewer than ten appraisers currently working to serve the market for home appraisals on South Dakota reservations on a consistent basis. However, historically low interest rates, increasing property values off-reservation, increased overcrowding in existing housing and the increase in capital directed to communities of color (with a new racial equity lens applied to the investment of capital) is heightening both the demand for and capital available to support housing purchases and new home construction in tribal communities and encouraging Tribal members to return to purchase homes on reservation lands.