Learn How To Start Investing In Real Estate
Learn How To Start Investing In Real Estate

Omaha, NE Real Estate Market Trends & Analysis

Written by Than Merrill

Key Takeaways

  • The Omaha real estate market is roughly on pace with the rest of the country, which is good news for investors.
  • Omaha real estate investing will continue to be shaped by the amount of inventory made available for the foreseeable future.
  • Real estate in Omaha looks to be healthy, and there’s nothing to suggest the trend won’t continue.

The Omaha real estate market, not unlike the rest of the country, is feeling the effects of what can only be described as an inventory crisis. If for nothing else, Omaha has fewer homes available on the market than last year, which is lending itself to a particularly competitive marketplace. That said, home prices continue to appreciate in the face of increasing demand, which is great news for sellers, but buyers may see things differently.

Omaha Real Estate Market Overview

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Omaha real estate investing

Median Home Price Omaha

The median home value in the Omaha real estate market is $165,900. At that price point, homes are 7.9% more expensive than they were around this time in 2017; that’s nearly on par with the national average of 8.1%. However, industry experts and pundits alike are convinced the appreciation rate in Omaha will taper off a little in the next year. In the next 12 months, for example, real estate in Omaha could very easily appreciate as much as 4.1%; just shy of last year’s numbers, but still encouraging for everyone that’s actively participating in the housing market. Homeowners, as it turns out, will be happy to see their assets continue appreciating, and buyers will be happy to see the rate of appreciation slow down a little.

Omaha Foreclosure Statistics

According to data presented by RealtyTrac, a trusted a real estate information company, there are approximately 544 properties in the Omaha real estate market that are currently facing some stage of the foreclosure process; that is to say, each of the homes identified by RealtyTrac are either at risk of default (pre-foreclosure), up for auction or bank-owned.

It is worth noting, however, that while foreclosures may represent rock-bottom for homeowners, they mean something entirely different to buyers and investors: an opportunity. If for nothing else, foreclosures may be had at a good price; most homeowners with distressed properties are willing to part ways with them for a discount in order to avoid bankruptcy. That means Omaha has at least 544 opportunities for prospective buyers, but you need to know where to look if you hope to capitalize on them.

The following neighborhoods have the highest ratio of foreclosures in the Omaha real estate market:

  • 68111: 1 in every 103
  • 68122: 1 in every 826
  • 68131: 1 in every 1120
  • 68108: 1 in every 1150
  • 68104: 1 in every 1273

Omaha Real Estate Investing

Investing in Omaha real estate isn’t going to be all that different from the national scene; namely, because of the amount of available inventory. The same inventory shortage taking the rest of the country to task hasn’t ignored Omaha, driving up prices wherever it sees fit, but I digress. Higher prices do not represent an opportunity for Omaha real estate investors to look elsewhere, but rather to exercise a different exit strategy.

Whereas most investors have coveted flips and wholesales in the past, Omaha real estate investors may appreciate the benefits today’s market exercises over buy and hold properties. As I already alluded to, prices are historically high, so finding cheap deals is getting harder to do. However, implementing a buy and hold strategy may help offset said prices. That’s not to say that buying a rental property for investment purposes will be cheaper, but instead that it’ll offer more ways to make a return on your investment. More specifically, however, rents are historically high, which will allow savvy investors to make a profit in the interim. It’s entirely possible to offset high acquisition costs with moths, or even years, of rental income. And while a buy and hold strategy won’t produce short-term results, it’s currently viewed as a great long-term play.

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