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Revitalization of Herreid, South Dakota: A Housing Success Story

3/24/2026, 7:33:12 AM

Core Event: Housing Development Fuels Population Growth

Herreid, a small town in South Dakota with a population of approximately 400, is experiencing a revitalization driven by strategic housing development. Local leaders, particularly Dick Werner, president of the Herreid Area Housing Development (HAHD), have spearheaded efforts to rebuild the town's housing stock, which is seen as essential for attracting new residents and businesses.

Background & Context: Declining Population and Economic Challenges

Historically, Herreid's population peaked at 767 in 1960 but has been in decline since, with the 2020 U.S. Census recording just 416 residents. This decline has led to significant challenges, including the potential dissolution of the local school due to low enrollment. Werner returned to Herreid in 2016 to find a shuttered grocery store and a struggling community, prompting him to take action to reverse these trends.

Funding and Development Initiatives

To address the housing shortage, Werner and the HAHD have secured over $2 million in grants from various sources, including the South Dakota Housing Authority and the U.S. Department of Agriculture Rural Development. These funds have been utilized for new housing construction, rehabilitation of existing homes, and municipal projects such as a sports complex and playground. The HAHD has also raised additional funds through local fundraising events, including a successful raffle program.

Economic Growth and Community Impact

The housing initiatives have led to tangible results, with five speculative homes developed and sold before completion, bringing 25 new residents to Herreid. The town now features a grocery store, medical clinic, pharmacy, and other essential services that contribute to a stable economy. Melinda Neeley, president of the Herreid Economic Development Corporation, noted that the expansion of housing has attracted new businesses and stabilized the local economy.

Criticism & Opposition: Ongoing Challenges

Despite the positive developments, some residents, like Kayla Huber, who opened a grocery store in Herreid, acknowledge that more housing options are needed to fully capitalize on the town's potential. Huber expressed that while the current efforts are commendable, the community could see even greater growth with additional housing developments.

Verbatim Quotes

  • “If you lose your school and your grocery store, your town is in trouble,” — Dick Werner, President, Herreid Area Housing Development
  • “I feel like we’re on an upward trajectory,” — Melinda Neeley, President, Herreid Economic Development Corporation
  • “Housing development is a marathon, not a sprint, and you’ve got to have people who are committed,” — Dick Werner, President, Herreid Area Housing Development

What's Next: Future Projections

Looking ahead, Werner anticipates a population increase in the upcoming 2030 census, marking the first growth in 70 years. The town has also seen an influx of Hispanic residents on work visas and Hutterite families, contributing to the community's diversity and potential for further growth. Werner emphasizes the importance of perseverance and community commitment in sustaining this momentum for future development.