What is the cost of living in Watertown, SD?
According to the most recent data on the cost of living, Watertown has an overall cost of living index of 97, which is 1.0x lower than the national index of 100.
Compared to South Dakota, Watertown has a cost of living index that's 1.1x higher than South Dakota's index of 91.
The standard of living in Watertown ranks as #9 most affordable out of the 19 places we measured in South Dakota. By definition, that implies Watertown ranks as the #10 most expensive place in the Mount Rushmore State.
For more reading on life in Watertown, check out:
Watertown Cost Of Living Vs. South Dakota
Six factors go into calculating the cost of living index in Watertown. Here is how it fares on each of the criteria:
The Services index in Watertown is 99.
The Groceries index in Watertown is 95.
The Health index in Watertown is 92.
The Housing index in Watertown is 94.
The Transportation index in Watertown is 106.
The Utilities index in Watertown is 94.
| Living Expense | Watertown | South Dakota | National Average |
|---|---|---|---|
| Overall | 97 | 91 | 100 |
| Services | 99 | 98 | 100 |
| Groceries | 95 | 97 | 100 |
| Health | 92 | 77 | 100 |
| Housing | 94 | 98 | 100 |
| Transportation | 106 | 102 | 100 |
| Utilities | 94 | 93 | 100 |
Watertown Cost Of Living Compared To South Dakota Averages
Index where 100 = national average. Source: cost-of-living index 2026.
For more reading on cost of living around South Dakota, check out:
- Most Expensive Cities In South Dakota
- Most Affordable Cities In South Dakota
- Average Rent In South Dakota
Source: Cost-of-living index 2026, normalized to US average = 100
Watertown, SD Housing Cost Breakdown
Housing swings affordability the most between places in South Dakota, so we broke down housing costs into more detail. Home and income data comes from the most recent US Census ACS 2020-2024. The key points are:
The Median Home Value in Watertown is $304,838.
The Median Rent in Watertown is $942.
The Median Income in Watertown is $69,600.
The Home Value To Income in Watertown is 4.4x.
The Rent To Monthly Income in Watertown is 0.16x.
| Statistic | Watertown | South Dakota | United States |
|---|---|---|---|
| Median Home Value | $304,838 | $317,148 | $332,700 |
| Median Rent | $942 | $946 | $1,413 |
| Median Income | $69,600 | $75,081 | $80,734 |
| Home Value To Income | 4.4x | 4.2x | 4.1x |
| Rent To Monthly Income | 0.16x | 0.15x | 0.21x |
Watertown, SD Costs By Category
Detailed Watertown Services costs vs. South Dakota
| Item | Watertown | South Dakota |
|---|---|---|
| Shampoo | $1.29 | $1.28 |
| Movie | $9.36 | $12.13 |
| Bowling | $16.4 | $18 |
| Haircut | $24.32 | $24.26 |
| Beauty Salon | $35.22 | $45.56 |
Detailed Watertown Groceries costs vs. South Dakota
| Item | Watertown | South Dakota |
|---|---|---|
| Ground Beef | $5.89 | $5.84 |
| Fried Chicken | $1.41 | $1.57 |
| Milk | $4.75 | $4.67 |
| Potatoes | $4.63 | $4.93 |
| Pizza | $10.64 | $12.09 |
| Beer | $9.33 | $10.41 |
| Toothpaste | $3.8 | $3.7 |
Detailed Watertown Health costs vs. South Dakota
| Item | Watertown | South Dakota |
|---|---|---|
| Optometrist | $135.1 | $125.68 |
| Doctor | $177.33 | $135.78 |
| Dentist | $108.21 | $113.29 |
Detailed Watertown Transportation costs vs. South Dakota
| Item | Watertown | South Dakota |
|---|---|---|
| Gasoline | $3.28 | $3.46 |
| Tire Balancing | $49.42 | $59.92 |
Detailed Watertown Utilities costs vs. South Dakota
| Item | Watertown | South Dakota |
|---|---|---|
| All Electricity | $141.67 | $193.99 |
| Phone | $194.04 | $192.25 |
Watertown SnackAbility
Cost Of Living In Cities Around Watertown
The cost of living varies in the cities and towns around Watertown. Here's a quick look at the cost of living in the most populous nearby places:
Brookings, SD has a cost of living index of 98, 1.0x Watertown.
| City | Population | Cost Of Living | Vs. Watertown |
|---|---|---|---|
| Brookings, SD | 23,948 | 98 | 1.0x |
