A charming town in South Dakota has devised an innovative solution to its housing dilemma: distributing land at no cost.

Chamberlain, located about 120 miles from Sioux Falls, is home to roughly 2,500 residents.

Nestled by the Missouri River, the town is a haven for outdoor enthusiasts, offering prime spots for walleye fishing and bird hunting.

Even with its modest population, Chamberlain faces challenges similar to the rest of the state, struggling to provide affordable housing options, as reported by Cowboy State Daily.

In response, the Lake Francis Case Development Corporation has initiated a novel approach by offering land for free, aiming to mitigate the increasing costs of construction materials.

The free lots are awarded through a lottery system and are all located in a subdivision with newly paved streets, sewer systems, 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.