Omaha, Nebraska

Section 01Executive Summary

Omaha is a stable Midwest market anchored by major employers including Union Pacific, ConAgra Brands, Mutual of Omaha, and large health systems that have supported consistent demand for housing even as national conditions have shifted. The Omaha and Council Bluffs metropolitan economy has grown steadily, with Bureau of Economic Analysis figures compiled by the Federal Reserve Bank of St Louis showing nominal gross domestic product rising from about eighty six point three billion dollars in 2022 to about ninety two point four billion dollars in 2023, an increase on the order of seven percent in current dollars. Multifamily fundamentals are solid rather than frothy, with the average effective rent at about one thousand two hundred fifty eight dollars per unit in early 2026 per Cushman and Wakefield and MMG Real Estate Advisors forecasting rent growth in the low two percent range through 2026.

The defining feature of the current market is a sharp decline in new supply rather than an absence of it. MMG Real Estate Advisors projects that net deliveries will fall from roughly four thousand five hundred units in 2025 to about one thousand nine hundred twenty nine units in 2026, a decline of about fifty seven percent, and trailing starts have fallen by about half from a year earlier, even as roughly four thousand one hundred forty one units remained under construction and about five thousand fifty five units were in lease up as of the second quarter of 2026. The combination of moderating construction, stable employment, and a renter base tied to health care, transportation, insurance, and professional services positions Omaha as a defensive market for multifamily and single family rental strategies, provided that investors track the still meaningful pipeline that remains in lease up. Third party forecasts cited here are estimates that may not be realized, and past conditions and trends do not assure future results.

Section 02Population and Migration

The City of Omaha grew from four hundred eight thousand nine hundred fifty eight residents in 2010 to four hundred eighty six thousand fifty one residents in 2020, a gain of about eighteen point nine percent that was amplified by municipal annexation, and Census Bureau estimates place the city near four hundred eighty nine thousand as of July 2024. The broader Omaha and Council Bluffs metropolitan area, which extends into Iowa, had a population of about nine hundred sixty eight thousand at the 2020 census. Recent population estimates for the city have been roughly flat since 2020, consistent with a mature market where household growth is steady rather than rapid, supported by consistent job opportunities in health care, logistics, and insurance, which sustains demand for both multifamily and single family rental product without the volatility associated with faster growing Sun Belt markets.

Source: United States Census Bureau QuickFacts, Decennial Census, Population Estimates Program, and American Community Survey for Omaha city Nebraska.

Section 03Jobs and Economic Anchors

Omaha benefits from a diversified employment base that includes major corporate headquarters, transportation infrastructure anchored by Union Pacific, a large insurance and financial services cluster, and a health care sector that has proven resilient across economic cycles. Bureau of Labor Statistics data for the Omaha and Council Bluffs metropolitan area show a very tight labor market, with the unemployment rate at about three point zero percent in the spring of 2026 and in a range of about three point one to three point six percent across 2025, well below the national average near four point three percent. Cushman and Wakefield noted that the metro added about two thousand four hundred jobs year over year through the third quarter of 2025, supporting stable leasing velocity and low turnover in multifamily assets.

At the macro level the Bureau of Economic Analysis reports that nominal gross domestic product for the Omaha and Council Bluffs metropolitan statistical area rose from about eighty six point three billion dollars in 2022 to about ninety two point four billion dollars in 2023, implying year over year growth on the order of seven percent that reflects both real expansion and price level effects. This Bureau of Economic Analysis metropolitan output series was discontinued after the 2023 reference year, and it remains a useful benchmark for the multi year output trend.

Section 04Income

Median household income in Omaha is close to the national level, which supports broad workforce housing demand without the extreme affordability gaps seen in coastal markets. American Community Survey estimates for 2019 to 2023 put the median household income for the City of Omaha at about seventy two thousand seven hundred eight dollars in 2023 dollars, which is roughly ninety three percent of the United States median of about seventy eight thousand five hundred dollars, while the median owner occupied home value was about two hundred thirty thousand one hundred dollars and the share of residents in poverty was about twelve point eight percent. Because the median figure alone masks a broad distribution of households across income bands, a sizable share of working families falls in the range that forms the core demand for Class B and C multifamily and single family rentals.

Section 05Housing and Multifamily

The Omaha multifamily market has entered a period of moderating supply that is supporting rent growth and occupancy stability. Cushman and Wakefield reported that the average effective rent stood at about one thousand two hundred fifty eight dollars per unit in the first quarter of 2026, up about one point six percent year over year, while CBRE reported average asking rents near one thousand three hundred dollars per unit, and MMG Real Estate Advisors forecasts effective rent growth in the low two percent range through 2026. New deliveries are declining sharply, but the pipeline is not empty: MMG reported about four thousand one hundred forty one units under construction and about five thousand fifty five units in lease up as of the second quarter of 2026, and CBRE counted about three thousand four hundred seventy seven units under construction in the first quarter of 2026 with no new deliveries completed that quarter. The renter household base in Omaha is supported by health care, transportation, insurance, and professional services employment, which favors both garden style apartments and smaller multi unit buildings in established neighborhoods.

Section 06Rents

MMG Real Estate Advisors, Cushman and Wakefield, and CBRE together provide current public benchmarks for Omaha rents. Cushman and Wakefield reported an average effective rent of about one thousand two hundred fifty eight dollars per unit in the first quarter of 2026, up about one point six percent year over year, with the Elkhorn submarket commanding the highest rents in the metro at more than one thousand six hundred dollars per unit. CBRE reported average asking rents near one thousand three hundred dollars per unit, and Zillow reported an average advertised rent of about one thousand four hundred twenty eight dollars per month across the city in mid 2026, up about two point five percent year over year against a national average near one thousand nine hundred sixty two dollars. MMG forecasts rent growth in the low two percent range through 2026, a modest but positive trajectory that MMG attributes to moderating deliveries rather than strong demand acceleration; this is a third party forecast and not a guarantee.

Section 07Vacancy

Cushman and Wakefield reported an overall Omaha multifamily vacancy rate of about seven point two percent in the third quarter of 2025, up about one hundred ten basis points year over year as the market absorbed a surge of 2025 completions. With deliveries set to decline sharply in 2026, market commentators expect vacancy to stabilize as the remaining pipeline leases up, though that outcome is not assured. A single stabilized vacancy figure by class and submarket for the city alone is tracked mainly by commercial data providers, and the metro wide Cushman and Wakefield figure is the most direct public measure available.

Section 08Supply Pipeline

The dominant feature of the current Omaha market is a sharp moderation in new supply, not its absence. MMG Real Estate Advisors projects that net deliveries will fall from roughly four thousand five hundred units in 2025 to about one thousand nine hundred twenty nine units in 2026, a decline of about fifty seven percent, and trailing twelve month starts fell about fifty three percent from a year earlier to about two thousand forty units. At the same time, roughly four thousand one hundred forty one units remained under construction and about five thousand fifty five units were in lease up as of the second quarter of 2026 per MMG, while CBRE counted about three thousand four hundred seventy seven units under construction in the first quarter of 2026 with no new deliveries that quarter. The multifamily fundamentals are summarized below.

Source: MMG Real Estate Advisors 2026 Omaha Forecast and Q1 and Q2 2026 pipeline reports, Cushman and Wakefield Omaha multifamily MarketBeat, and CBRE Omaha multifamily figures.

This sharp decline in new deliveries, combined with a pipeline that is still leasing up, is the central dynamic of the current Omaha market and differentiates it from higher growth Sun Belt metros where sustained oversupply has pressured performance.

Section 09Single Family Homes

The single family home market in Omaha has remained competitive, with steady price appreciation supported by limited inventory and a tight labor market. Redfin and Zillow figures are summarized below.

Source: Redfin Omaha Nebraska housing market page and Zillow home value and rental data for Omaha Nebraska, mid 2026.

Single family rentals compete directly with small multifamily product for working households tied to the stable employment base, and the moderating multifamily supply environment is broadly supportive of occupancy in investor owned single family assets as well.

Section 10Commercial Real Estate and Retail Centers

A comprehensive public source for segment level office, industrial, and retail vacancy and rent series specific to the City of Omaha is limited, with the most consistent numeric coverage published by national brokerages at the metro level. Omaha benefits from a strong industrial and logistics presence supported by Interstate highway access, Union Pacific, and major corporate headquarters, and grocery anchored centers in established residential areas have generally shown relatively stable performance given the household base, while older commodity office space faces the same hybrid work headwinds common across many United States metros; outcomes vary by asset and are not assured. Segment specific vacancy and cap rate benchmarks for Omaha are best confirmed with current brokerage reports and local transaction data.

Section 11Transactions and Capital Markets

Transaction volume data for Omaha across all real estate segments are largely housed in commercial data services and local multiple listing services, so this section relies on general market color rather than complete count and volume series for institutional grade assets. The combination of moderating supply, a tight labor market, and stable rent growth has supported investor interest in Omaha as a defensive Midwest market. Debt capital availability is shaped by national credit conditions; as a national reference point, the Freddie Mac average thirty year fixed mortgage rate stood in the mid six percent range in mid 2026, an elevated cost of capital that implies levered buyers must underwrite with conservative exit and interest rate assumptions.

Section 12Taxes

Property taxation in Omaha is administered primarily at the county level by Douglas County, with the City of Omaha, school districts, and other jurisdictions setting levies that together determine the total burden on each parcel, and Nebraska assesses residential property near full market value. For a typical tax district inside the City of Omaha, the 2025 consolidated levy was about two dollars and six cents per one hundred dollars of assessed value, and the Douglas County average was about two dollars and four cents per one hundred dollars, among the higher effective property tax burdens in the region. The largest components of the 2025 consolidated levy for a representative Omaha district are shown below.

Source: Douglas County Treasurer and Nebraska Department of Revenue property tax district levy files for tax year 2025, representative Omaha tax district.

Because levies vary by school district and other overlapping jurisdictions, investors must underwrite property taxes at the parcel level rather than relying on a single average, and experienced tax counsel is often engaged for larger commercial properties to manage assessments and appeals.

Section 13Insurance

Insurance conditions in Omaha are shaped by its inland location and exposure to severe thunderstorms, hail, tornado risk, and winter weather rather than coastal wind or surge. The Federal Emergency Management Agency flood mapping system identifies special flood hazard areas primarily along the Missouri River and local waterways, and although a single citywide percentage of land inside the one hundred year floodplain is not published by FEMA, properties in flood prone areas face higher flood risk and are more likely to require flood insurance as a condition of financing. City and county resources on stormwater management emphasize that intense rainfall and severe convective storms can produce localized flooding and hail damage, which investors should consider when assessing long term capital expenditure and insurance budgets.

Section 14Landlord Tenant and Regulatory Environment

Nebraska state law regulates landlord and tenant relationships, and Omaha as a municipality operates within that state framework while also implementing local regulations related to building codes, zoning, and inspection requirements. Nebraska statutes governing residential tenancies outline notice periods, security deposit rules, and allowable lease terms, and importantly state law preempts local rent control measures, which means that Omaha does not have rent control ordinances that cap annual rent increases. The City of Omaha enforces zoning rules, building codes, and inspection standards through its planning and inspections divisions, and investors must review zoning designations and any overlay districts for each targeted parcel to understand allowable uses and density.

Section 15Infrastructure

Omaha benefits from a well developed highway network including the Interstate 80 and Interstate 29 corridors that support logistics and distribution operations, as well as Eppley Airfield, which provides commercial air service and cargo facilities important for corporate and health care tenants. City comprehensive planning documents emphasize ongoing investments in road, transit, and utility infrastructure that support both residential and commercial development in established corridors, and the region's central location and rail access remain core advantages for its industrial and logistics base.

Section 16Climate and Physical Risks

Omaha has a humid continental climate with cold winters, hot summers, and a precipitation profile that includes significant thunderstorm and hail activity along with occasional severe weather. Based on the 1991 to 2020 National Oceanic and Atmospheric Administration climate normals for the Eppley Airfield station, Omaha averages about thirty one point nine inches of precipitation and about twenty seven inches of snowfall per year, which affects building design, maintenance costs, and tenant preferences, particularly regarding hail resistant roofing and winter operations. Flooding risk is concentrated along the Missouri River and local waterways, and investors should review both Federal Emergency Management Agency flood maps and local stormwater studies when underwriting specific assets.

Section 17Neighborhoods and Submarkets

Within Omaha and the surrounding area different neighborhoods and submarkets exhibit distinct demand drivers, rent and price levels, and risk profiles. Broadly the downtown and midtown areas tend to command higher rents due to walkability and access to employment and amenities, and the Elkhorn submarket on the western edge commanded the highest apartment rents in the metro at more than one thousand six hundred dollars per unit in early 2026, while more established central and eastern neighborhoods offer a mix of older apartments and single family homes at lower rents. Investors evaluating Omaha assets should therefore consider not only citywide averages but also the specific submarket in terms of tenant mix, access to major employers, flood exposure, and the local planning context.

Section 18Opportunities

For multifamily investors Omaha offers a combination of moderating supply, stable employment anchors, and positive recent rent growth. MMG's forecast of low two percent rent growth from an effective rent base near one thousand two hundred fifty eight dollars in early 2026, combined with a forecast sharp decline in new deliveries in 2026, may be supportive for existing owners and for value add buyers who can acquire assets before the remaining pipeline is fully absorbed, though these are third party forecasts and no particular outcome or return is assured. Single family and small multi unit investors can tap into demand from health care, transportation, and insurance workers in established neighborhoods where for sale inventory remains limited and home prices have risen about five percent year over year. Investors should size acquisitions against the roughly five thousand units still in lease up, which will need to be absorbed before rent growth reaccelerates.

Section 19Risks

Key risks in Omaha include concentration of demand in health care, transportation, insurance, and corporate sectors that could be sensitive to national economic cycles or corporate relocation decisions, the absorption of the roughly four thousand one hundred forty one units under construction and five thousand fifty five units in lease up as of the second quarter of 2026, and climate and severe weather exposure including hail, tornado, and flooding risk in specific areas. While new deliveries are declining sharply, the still active pipeline means that near term occupancy and rent performance could vary by submarket, and investors should underwrite with conservative absorption assumptions. Detailed submarket vacancy, absorption, and cap rate metrics are available mainly through commercial brokerages and data providers, which underscores the importance of current transaction data and local expertise.

Section 20Investor Implications

For United States accredited investors Omaha represents a defensive, yield oriented market where moderating supply and stable employment anchors have supported positive rent movement without the volatility of faster growing regions. Multifamily strategies that target well located existing assets may find support in the combination of MMG's low two percent rent growth forecast and a declining delivery schedule, though the roughly five thousand units in lease up temper the pace of near term rent gains and no particular occupancy, rent, or return outcome is assured, while single family rental and industrial strategies can draw on the same employment stability and a tight for sale market. Across all asset classes the Omaha climate and severe weather profile, the consolidated property tax levy of about two dollars and six cents per one hundred dollars of assessed value inside the city, and the regulatory environment must be integrated into underwriting models, and current transaction data and local expertise remain essential for cap rate and absorption analysis by segment.

Section 21Conclusion

Omaha Nebraska offers accredited investors a stable, supply moderating market with consistent employment anchors, modest but positive recent rent growth, and a defensive profile that differentiates it from higher volatility Sun Belt peers. The combination of a sharp forecast decline in 2026 deliveries, an average effective rent near one thousand two hundred fifty eight dollars in early 2026 with a low two percent forecast growth rate, and a still active pipeline of roughly four thousand one hundred forty one units under construction and five thousand fifty five units in lease up defines a market that is tightening gradually rather than one where supply has disappeared. At the same time investors must approach Omaha with a clear understanding of the concentration of demand in specific employment sectors, the absorption required from the remaining pipeline, and the region's severe weather and property tax profile. For long term oriented capital that values stability over rapid appreciation, Omaha represents a credible defensive Midwest market, but it remains a market where execution and local knowledge are essential, and where no particular investment return is promised or assured.