SIDNEY, Neb. — As Panhandle communities grow, they're faced with tackling a housing shortage.

During Economic Development Week City Manager David Scott said Sidney has been working alleviating Sidney's limited housing.

Scott said over a dozen new businesses have moved or opened in Sidney over the last few years.

“We’ve done a really good job cultivating talent and getting businesses in here,” Scott said. “There are so many that have come here, and we appreciate all of them and want them to succeed.”

Scott said a big challenge of getting housing in Sidney is getting contractors to bring their business to the Panhandle.

“Probably the biggest obstacle that I’m finding is attracting contractors to the rural areas," Scott said. "It’s easy for them to stay in Colorado where they can build houses for a half-a-million dollars every day, all day long and make a lot of money.”

To help this issue, Scott said the city has done housing and blighting studies so Sidney can apply for housing grants from the state of Nebraska.

Scott said he is in the process of applying for an Affordable Housing Grant from the state for $500,000 to build new housing in Sidney. Scott said building housing from grants will help entice contractors to the area.

“The money is in hand, we’ll be able to pay them, and they know the houses will sell because there will be an application process for who will be able to buy these homes,” Scott said. “The incentive is knowing they are going to come into the door, they’re going to build a house and they’re going to get their money.”

The Nebraska Legislature recently approved more funding for rural housing at the end of its latest session.

Scott said near the end of the year, the state should have more applications out for funding. He said he is looking forward to applying for those.

“We’re going to try and use every avenue we can,” Scott said. “We’re going to do what everybody else is doing and we’re also going to think outside the box because we want to do everything we can to get jobs. We know that employers need employees, and those employees need a place to live”

Scott said Sidney has come a long way and is optimistic about the future.

“It’s actually refreshing to know that we’re in the same spot as everyone else in the state when five years ago we had several houses on the market and a lot of media outlets in the bigger cities were counting us down and out, and now here we are right up there with everybody else,” Scott said.