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South Dakota city encouraging growth by giving away lots in exchange for promise to build a home

Chamberlain has built seven homes in Smokey Groves using $4 million in public funds, offering free lots to spur growth amid a severe housing shortage.

  • Chamberlain officials are offering free lots in the Smokey Groves Addition subdivision where streets and utilities are installed to those who promise to build homes.
  • Faced with developer reluctance, officials moved to act as Chamberlain built few new homes and lost family housing to short-term rentals, creating persistent demand.
  • Giving away 11 buildable lots by lottery, officials awarded them to applicants promising to start construction within 18 months, after spending $900,000 to acquire land and divide it into 30 housing, one multi-family, and 11 commercial lots.
  • Local businesses saw revenue from the building boom as local builders benefited from construction sales, while apartment waiting lists highlight ongoing housing demand the city aims to address.
  • Powell said other towns should learn from Chamberlain's experience, advising roads and curbs be finished before selling lots; Cedar Heights produced 70 houses, six multi-family, and 15 commercial properties.
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South Dakota News Watch broke the news in on Monday, October 13, 2025.
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