Why More Buyers Are Choosing the Southern Black Hills

Morghan Jabusch • July 7, 2025

If you're dreaming of mountain living, wide open spaces, and a slower pace of life, the Southern Black Hills might be precisely what you’ve been looking for. While areas like Spearfish and Deadwood in the north have their charm, more and more homebuyers are turning their attention south to peaceful towns like Custer, Hill City, and Hot Springs. Whether it’s the natural beauty, the small-town atmosphere, or the value you get for your dollar, the Southern Hills offer a unique lifestyle that’s becoming harder to ignore.



In this article, we’ll break down why the Southern Black Hills are gaining popularity, from real estate advantages to day-to-day lifestyle benefits, and help you decide if this region is the right fit for your next chapter.

Real Estate Value: More Land, Less Competition

When it comes to getting more for your money, the Southern Black Hills stand out. Compared to the Northern Hills, towns like Custer,  Hill City, and Hot Springs often offer larger lots, less buyer competition, and lower price-per-square-foot averages especially for cabins, rural homes, and undeveloped land.


In places like Spearfish or Lead, prices are rising due to tight inventory and growing tourist demand. But in the Southern Hills, buyers can still find affordable mountain properties, often with acreage and privacy that are rare in today’s market.

Whether you’re looking for a quiet homestead, a vacation cabin, or a place to retire peacefully, the value per dollar in the Southern Hills can be significantly more attractive, primarily if you act before demand catches up.

Southern Black Hills real estate lifestyle examples

Lifestyle Fit & Community Culture

A Different Pace of Life

The Southern Black Hills offer a slower, more grounded lifestyle. While the Northern Hills buzz with tourism and nightlife, Southern towns like Hill City and Custer emphasize family values, nature, and community events. This makes them ideal for retirees, families, and anyone seeking peace over pace.

Faith & Family-Oriented Communities

Many Southern Black Hills residents are drawn to the region’s faith-based culture and conservative values. Churches are deeply woven into the community fabric, and local schools tend to be smaller and more personal. For buyers who want to raise children or retire in a place that aligns with traditional values, this area stands out.

Surrounded by Natural Beauty

While both the North and South offer stunning views, the Southern Black Hills are home to some of the region’s most iconic landscapes, like Custer State Park, Sylvan Lake, and Wind Cave National Park. Residents don’t just live in the mountains, they experience them daily.


Want to get a feel for the lifestyle? Read our Things to Do in Hill City blog to discover why locals love it here.

Access, Infrastructure & Growth Potential

Getting Around: Ease of Access

The Southern Black Hills offer convenient access via Highway 385, with Custer and Hill City both within a 45–60 minute drive from Rapid City. This makes commuting to larger employers, shopping centers, or regional airports more practical than many realize, especially for families or retirees who want a rural feel without total isolation.


By contrast, the Northern Hills (such as Spearfish or Deadwood) often involve more winding routes and longer drives for those headed south toward the Rapid City metro area. While charming, they’re not always as centrally located for multi-directional travel.

Development Trends

While the Northern Hills (especially Spearfish) have seen more commercial expansion, the Southern Hills are quietly experiencing a rise in residential interest. Buyers are drawn to larger lots, lower price per acre, and proximity to outdoor amenities. Hill City and Custer are also being recognized for their investment potential as more remote workers and second-home buyers seek lifestyle-first locations.

Long-Term Potential

If you're evaluating where to buy based on long-term value and lifestyle alignment, the Southern Hills stand out as a notable option. The area offers a unique combination of:



  • Slower-paced growth (reducing market volatility)
  • Stable local economies
  • Expanding tourism-driven income potential
  • Lower inventory and increasing demand for quality-built homes on land

This balance creates a compelling case for primary homebuyers, vacation home seekers, and long-term investors alike.

Southern Black Hills real estate example

Who the Southern Hills Are Best For (And Who Might Prefer the North)

Southern Black Hills: A Perfect Fit For...

  • Nature-loving retirees seek peace, a slower pace, and a community that still has proximity to medical care and essential services.
  • Families who want to raise kids in a safe, values-driven community with a strong small-town spirit and access to hiking, lakes, and seasonal activities.
  • Remote workers or creatives looking for inspiration in scenic beauty, while still being close enough to Rapid City for a coffee shop meetup or airport run.
  • Second-home buyers and vacation rental investors who value the charm of Custer or the artsy pull of Hill City, both of which continue to draw year-round tourism.
  • Land lovers or homesteaders looking for more acreage at a better price point than what’s found in the Northern Hills.

Northern Hills: Might Be Better For...

  • Buyers are prioritizing quicker access to Wyoming or those who want to be closer to Spearfish Canyon or Deadwood entertainment.
  • Investors interested in college rental markets are drawn to the presence of Black Hills State University in Spearfish.
  • Commercial buyers are seeking properties in areas with more developed infrastructure and higher population density.
  • People who prefer a more developed, suburban lifestyle, with slightly more robust options for shopping, dining, and services.

Final Thoughts: Is the Southern Black Hills Right for You?

While both the Northern and Southern Black Hills offer incredible lifestyle and real estate opportunities, more and more buyers are being drawn south, not just for the scenery, but for the sense of home. From the artisan charm of Hill City to the quiet strength of Custer, the Southern Hills represent a lifestyle rooted in nature, family, and freedom.



If you’re considering buying in the Black Hills, don’t just follow the crowd; follow what fits your lifestyle, values, and goals best.

Want a deeper look at life in the Southern Hills?


Explore our complete Hill City Neighborhood Guide and Custer Neighborhood Guide for insider tips, local highlights, and real estate insights.


Or jump straight into the heart of the region with our Explore the Black Hills page.


Black and White Photo of Founder Morghan Jabusch

About the Author

Morghan Jabusch, Founder | Licensed Real Estate Agent (SD & CO)


Morghan Jabusch is the founder of The Jabusch Collective, a boutique real estate brand rooted in faith, integrity, and personalized service across the Black Hills of South Dakota. Licensed in both states, Morghan brings a sharp eye for strategy, a deep understanding of local market dynamics, and a genuine desire to serve each client with care and excellence. Drawing from years of entrepreneurial and marketing experience, Morghan takes a data-informed, people-first approach to real estate. Whether helping families relocate, first-time buyers find their footing, or clients explore cabins, land, and lifestyle properties, his mission is to make every move feel intentional and well-supported. Morghan is passionate about building lasting relationships, sharing local insight, and guiding buyers toward homes that genuinely reflect their lives and values.


Click To Share

By Giselle Jabusch October 4, 2025
🍂 Discover the ultimate fall bucket list in the Black Hills — scenic drives, cozy cafés, seasonal recipes, fashion, and colors to inspire your autumn.
By Giselle Jabusch October 2, 2025
Want to feel confident your home will sell for what it’s worth? We’ve got you covered!
The rolling Black Hills and mountains under a cloudy sky, viewed from a grassy field with a fence.
By Giselle Jabusch September 18, 2025
Discover what truly drives land value in the Black Hills—access, utilities, zoning, and more. Learn how to spot parcels that hold value long-term.
Black Hills rocky mountain peaks rise above a dense green forest under a cloudy sky.
By Giselle Jabusch September 16, 2025
Learn the actual cost of selling a Black Hills home—commissions, closing fees, repairs & more. Discover innovative strategies to net the most from your sale.
Black Hills mountain vista with green trees, rock formations, and a blue sky with white clouds.
By Giselle Jabusch September 16, 2025
Discover the hidden costs of buying in the Black Hills—closing fees, inspections, taxes & more. Learn how to plan and buy with confidence.
A picture giving an example of Black Hills Geology modern day
By Giselle Jabusch August 30, 2025
The Black Hills rise from the Plains with a 2-billion-year story. Discover their granite roots, gold rush past, and why they’re called the “Black Hills.”
Off-grid cabin in the Black Hills, South Dakota
By Giselle Jabusch August 23, 2025
Thinking of an off-grid cabin in South Dakota? Learn the costs, land tips, and lifestyle secrets of Black Hills off-grid living before you buy.
South Dakota homestead building
By Giselle Jabusch August 22, 2025
Ready to start your South Dakota homestead? Learn the hidden keys to choosing the right land, lowering taxes, growing food, and creating a life that lasts.
White and yellow daisy-like flowers in a dense Black Hills field with green stems.H
By Giselle Jabusch August 21, 2025
Discover native South Dakota Black Hills wildflowers, bloom times, pollinator facts, and what they reveal about soil, land history, and real estate potential.
picture of downtown Hill City, SD
By Morghan Jabusch August 8, 2025
Thinking about moving to Hill City, SD? Discover this Black Hills gem — from local lifestyle and housing options to insider tips from a Hill City real estate agent.
More Posts