A new affordable housing development is coming to Spearfish, marking a first for federal funding in the Black Hills region.
Ground was recently broken on the $9.3 million Peak View Two apartment complex, a 32-unit development planned for the east side of the city. It will be among the first projects to use money from a 30-million-dollar federal housing fund approved by Congress in 2024.
The project is expected to begin accepting tenants in the summer of 2027.
Developers say the goal is to help address a growing need for affordable housing in Spearfish, where population growth has outpaced available housing. Rents in the current market can reach as high as 1,650 dollars a month, putting pressure on low- and moderate-income residents.
When completed, Peak View Two will offer subsidized rents ranging from about 600 to 1,300 dollars per month, depending on income. Federal rules will require those rents to remain affordable for at least 40 years.
The project is being developed by Buxton Enterprises, with additional funding from state housing programs and a 750-thousand-dollar low-interest loan approved through a partnership between the South Dakota Ellsworth Development Authority and the Black Hills Area Community Foundation.
Local leaders say projects like this are critical as the region continues to grow and housing costs rise—especially for workers who want to live in Spearfish but struggle to afford market-rate rents.
Officials say the new complex is part of a broader regional effort that has already helped create or preserve more than 600 affordable apartments across the Black Hills.
For now, construction is underway, with city leaders hopeful the new units will bring welcome relief to the tight housing market.
