Nebraska, also known as the Cornhusker State, became the 37th state in 1867. A size of 77,358 square miles makes is the 16th largest state by size, and the population of 1,896,190 makes Nebraska the 37th largest state by population. The Great Plains make up a large part of the state’s landscape with rolling hills scattered across some areas. So, what does the 2016 Nebraska real estate market currently look like?
The largest employer in Nebraska is the United States Military with the Offutt Air Force Base followed closely by the University of Nebraska. Agriculture is one of the top industries, the state is a major producer of beef, pork, corn, soybeans, and sorghum. As of July 2016 the unemployment rate is 3.1. The service industries have seen increases over the past year while the goods producing industries have seen a decline. The future job growth follows the same trend: services are expected to continue the upward trend while goods is questionable at best.
Nebraska real estate has a current median list price of $155,000 which reflects a 4.72 percent appreciation rate. Housing market predictions forecast a 4.10 percent growth over the next twelve months. The 2016 Housing Market in Nebraska can expect continued growth as the population expands. The current growth rate is 0.80 percent, the 25th fastest growth in the country. The real estate market also includes approximately 811 rental properties. Rental prices vary from as low as $100 for a small studio apartment to $3500 for a four-bedroom house.
Influencing Factors for the 2016 Nebraska Real Estate Market
The Nebraska real estate median home value is $138,867. This value is lower than the nationwide median home value.
- The foreclosure rate in Nebraska is 0.40 percent. Foreclosures for July 2016 are 48 percent lower than June 2016 and 9 percent lower than the same time last year (2015).
- The median rent is $806, a 7.94 percent increase over the past two years (median rent in 2014 was $742).
- The current APR is 3.27 percent. The average is 3.27, only slightly lower than the national rate of 3.29 percent. The APR has varied from 3.16 percent up to 3.44 percent.
- The state has been operating a program for over twenty years that has and hopes to continue adding more and better affordable housing throughout the state, especially in rural communities.
Best Places to Live in Nebraska
Lincoln is the capital of Nebraska as well as the home to the University of Nebraska. The population is 272,996 making it the 2nd largest city in the state and 72nd in the United States. The Lincoln NE real estate market is especially healthy with a Zillow rating of 8.2 out of 10. Zillow Lincoln lists the current home value at $151,900, an increase of $4.1 percent over last year (2015) and is expected to continue increasing over the next year (through 2017) at 3.5 percent. The median list price is $169,000 while Trulia Lincoln places the median sale price at $165,000. Also according to Trulia, 64 percent of residents own their home. Of those homeowners, 39 percent are single and the median age is 34 years. Home prices start in the area of $25,000 for a small one or two bedroom home and reach maximum prices in excess of one million dollars for three to five bedroom homes. Craigslist Lincoln has listings for homes ranging in price from $30,000 to $40,000 for a small house to larger houses for several hundred thousand dollars. Foreclosures are 2.19 per 10,000 properties. As of July 2016, 276 properties are available. This number is 54 percent lower than June 2016 and 12 percent lower than the same time in 2015. Zillow’s rent index is $1287, a 2.8 percent increase. The median rental price is $1200 per month. A one bedroom rental (typically a studio or small apartment) starts renting around $400. Rent for three to five bedroom houses start around $1500 and go up from there.
The largest city in Nebraska is Omaha with a population of 446,599 residents. Omaha is home to the headquarters to several prominent industry leaders. A brief list of these companies include: Kiewit Corporation (construction), Mutual of Omaha (insurance and finance), and Union Pacific Corporation (railroad). Warren Buffet and his conglomerate most known for real estate, are found in Omaha. Almost three quarters of Omaha’s population, 71 percent, own their home. Of those homeowners, 35 percent are single at a median age of 34 years.
Omaha NE real estate is classified as healthy with a 6.3 out of 10 score from Zillow. The home value is $141,400. This number has increased by 4.7 percent since June 2015 and is expected to continue increasing at 3.2 percent through June 2017. The median list price is $180,000 and the median sale price is 173,000. A closer look at home prices will reveal a small three bedroom as low as $3500, a three to five bedroom home for amounts exceeding one million dollars, and an exclusive condominium for 3.3 million dollars. Seven hundred and thirty-five properties were in some phase of foreclosure as of July 2016, down 56 percent from June 2016 and 33 percent less than July 2015. The median rental price is $1300. The rent index from Zillow is $1280, up 1.2 percent when compared to 2015. A studio or one bedroom apartment can be rented for less than $500 per month while a four to six bedroom home rents for $3000 or more.
The fourth largest city in Nebraska is Grand Island. Located almost 100 miles west of Lincoln, the population is 51,236. The Southern Power District which is responsible for power supplies in southern Nebraska is located in Grand Island. The city is also home to the Nebraska Law Enforcement Training Center; this facility is responsible for training all law enforcement officers in the state. Sixty-nine percent of all residents own their home, 34 percent are single, and the median homeowner age is 38 years. The Grand Island real estate market estimates a median list price of $119,000 and a median sale price of $150,000. Zillow’s home value index is $140,800, a 4.5 percent increase from last year (2015). Based on listings on Trulia, homes containing anywhere from one to four bedrooms are listed beginning at $80,000 while three to five bedroom homes can vary between $300,000 and over one million dollars. Only 28 properties were in some stage of foreclosure in July 2016: up 33 percent since June 2016 as well as July 2015. Median rental prices are $1022. Zillow’s present rent index is $1198; the index experienced a slight dip during the first half of the year but seems to have rebounded. Seven rentals are listed on Trulia’s site, all two bedrooms ranging in price from $495 to $1800 per month.
Kearney, Nebraska has a population of 32,469 making it the fifth largest city in the state. The University of Nebraska at Kearney is located in the city. Sixty-nine percent of the population owns their homes, of the 69 percent 35 percent are single and the median age is 34 years. The median list price is $180,000. Kearney real estate is somewhat broad and priced higher when compared to other markets in the state. Mobile homes are available in the range of $30,000 to $80,000; single family homes with two to four bedrooms often exceeds $100,000; larger homes with three to five bedrooms typically cost between $300,000 and $500,000. Only seven properties are listed in foreclosure as of July 2016. The median rental price is $1400 per month. Trulia has listings for three properties with two or three bedrooms ranging in price from $950 to $1500.
Bellevue, located only eight miles south of Omaha, is the third largest city in the state with a population of 53,936. The Bellevue NE real estate market is healthy with a 6.5 out of 10 rating from Zillow. Homeowners make up 67 percent of residents in the city, 29 percent of those residents are single and the median age is 35 years. The median list price is $175,000 and the median sale price is only few thousand dollars lower at $172,000. The current home value is $155,300, 5.2 percent higher than 2015. Home values are expected to continue moving upward at a rate of 3.1 percent. A two bedroom home sells for approximately $70,000. Higher end homes with three to five bedrooms sell for $400,000 and up. The foreclosure rate is 1 per every 10,000 properties; this dropped 27 percent from June 2016 to July 2016 but rose 78 percent since July 2015. There are currently 71 properties in some stage of foreclosure. Rental property prices have a medium price of $1400. The Zillow rent index is $1295; this represents an increase from 2015. One bedroom property rental prices start in the vicinity of $475 and three to four bedrooms rent for between $1200 and $1600 per month.
Learn More About The Neighboring States to the Nebraska Real Estate Market Here:
- 2016 Colorado Housing Market Predictions
- 2016 Wyoming Real Estate and Housing Market Forecast
- 2016 South Dakota Housing Market Predictions
- 2016 Iowa Housing Market Predictions
- 2016 Kansas Real Estate Market Predictions