A small city in South Dakota has turned to an innovative solution to tackle its housing shortage: offering free land to residents.

Chamberlain, situated roughly 120 miles from Sioux Falls, is home to around 2,500 people.

Positioned along the Missouri River, this charming town appeals to outdoor enthusiasts, particularly those interested in walleye fishing and bird hunting.

Despite its modest size, Chamberlain faces challenges in providing affordable housing for its community, a problem echoed throughout the state, reports Cowboy State Daily.

In response, the Lake Francis Case Development Corporation has initiated a program offering free land parcels to local residents, aiming to alleviate the burden of escalating construction costs.

These complimentary plots are distributed through a lottery system and are all situated within a newly developed subdivision, complete with freshly paved roads and modern utilities like sewer and water lines.

Already, seven new homes have been constructed in the development known as the Smokey Graves Addition. 

A further 11 lots have been awarded to lottery participants who met the financial parameters and promised to begin construction within 18 months. 

Though Chamberlain, South Dakota has a population of only 2,500 people, the community is struggling to house all of its residents 

The city is located approximately 120 miles from Sioux Falls

Lake Francis Case Development Corporation decided to purchase and giveaway plots of land in hopes of encouraging development

According to the city website, the free land is close to schools and hospitals and is available for both homes and businesses.

In recent years, the city has seen very little new housing projects.

Building materials in Chamberlain are pricier than in other South Dakota towns, because they must be transported in. 

Additionally, the number of contractors in Chamberlain is low, so residents hoping to build homes must pay more to bring in workers. 

There is little turnover for existing homes and most apartment complexes in the city have waitlists for occupancy, according to the Associated Press.  

The Dakota Institute reported that the average South Dakota home has increased by $170,085 since 2016. 

Single family homes throughout the state cost approximately $380,000.

The home giveaway is part of a development project that began in 2018 when the city spent $900,000 to buy 60 acres of land which was divided into 30 housing lots.

Lake Francis Case Development Corporation’s executive director Sheena Larsen said they paused the land lottery for two years to build the infrastructure 

Potential homebuilders must enter through an online lottery and promise to begin construction within 18 months

‘We haven’t given out any for probably close to two years trying to get the infrastructure done,’ the executive director of Lake Francis Case Development Corp Sheena Larsen told Cowboy State. 

She explained that the development had experienced delays thanks to contractor and engineer struggles. 

‘The city invested by giving the lots away, so that the tax base will get rolling faster,’ Larsen said. 

Other states like Nebraska and Wyoming have rolled out similar programs.  

The Daily Mail reached out to Lake Francis Case Development Corporation for further comment.