WATERTOWN, S.D.(KWAT)–The Watertown Development Company delivered the results of a housing study to the city council Tuesday night.

It shows the occupancy rate for rental units in Watertown is very high, but there’s a need for more single family homes in all price points–especially entry-level homes.

Development Company Executive Director Chris Clifton.

Clifton says salaries aren’t the problem in Watertown, but availability of affordable housing is a problem.

The study by Maxwell Research and Consulting found Watertown’s unemployment rate was just two percent, and that entry-level homes are difficult to build in the current environment due to high development costs.

Suggestions in the study included property tax abatements, smaller lots, tiny homes and public-private partnerships.