PIERCE -- The city of Pierce is working to address the housing shortage with a grant from the state. 

"I get calls for people looking for homes all the time so the grant is going to be a shot in the arm," said City Administrator Chad Anderson.

There's a deficit of nearly 31,000 affordable rental homes in Nebraska, according to the National Low Income Housing Coalition.

In Pierce, one grant of half a million dollars aims to assuage that.

"The Nebraska Affordable Housing Trust Fund Grant is a grant that's offered by the state for rural workforce housing," said Economic Development Director Susan Norris.

Other city recipients of the state grant include Hebron, South Sioux City, Syracuse, and Valentine.

As one of just five cities granted the money this autumn by the Nebraska Department of Economic Development, Norris said the City of Pierce is eager to spend it on homes.  They had polled 600 people on what Pierce's biggest need is, and housing votes were through the roof.

"The biggest barrier to the project at this time would probably be construction costs," Norris said.

Home prices are up eight percent this year, while the number of homes are down 20 percent. But rather than causing hesitation, it's all the more reason to tackle affordable housing.

"We're full speed ahead," Norris said.

Officials said the area is particularly popular because of its school system. Population in Pierce has grown, as opposed to many other small towns in the state. And, Anderson said, those looking to move here are often young adults. The average population age is even decreasing. 

"Here in Pierce we have the recreation area, a beautiful park [...] and excellent school system," Anderson said.

Darin Zuhlke is managing the project and tenants in six housing units and three townhomes. "We already have the townhome project and costs evaluated," Zuhlke said.

Planning started two and a half years ago, before the grant even opened the door to new homes.

"There's so many people looking for housing [...] the biggest thing here in Pierce people want to move in but there's nothing available to rent," he said.

It'll be the first new home construction in Pierce since two and a half years ago.

Construction is set for spring of 2022, to complete within 9 months.

Officials hope new buyers will boost the tax base and attract more customers for the county's 13 new businesses that started during the pandemic.