Omaha housing market faces workforce housing shortages amid thriving construction sector

The Nebraska Economic Forecasting Advisory Board meeting on February 28, 2025, highlighted the ongoing strength of the Omaha housing market, which continues to thrive without signs of recession. Despite high rental prices for homes and apartments, the board acknowledged a significant challenge: the shortage of affordable housing, particularly for low to middle-income families.

The discussion emphasized the need for what is termed "workforce housing," which caters to individuals who earn moderate incomes but struggle to find suitable housing options. This shortage is compounded by rising interest rates, which have made homeownership less attainable for many potential buyers compared to previous years.

On a positive note, the commercial construction sector remains robust, with a notable increase in available workers to support ongoing projects. This influx of labor is helping to sustain construction activity, although the board noted a potential slowdown in the number of new projects statewide.

Overall, the meeting underscored the importance of addressing housing affordability while recognizing the positive trends in construction and employment that could benefit the Omaha area and beyond. As the board looks ahead, the focus will remain on finding solutions to the housing crisis while capitalizing on the region's economic growth.