Nebraska Home Selling

Though home prices in Nebraska rose more than 7% year over year in October 2025, the state's median sale price of $307,900 puts it well below the national median of around $440,000. Pricing in Nebraska aligns closely with that of neighboring Plains states, such as Kansas and Iowa, yet remains more affordable than markets in the Mountain West, including Colorado and Wyoming. Like other real estate markets in the Midwest, demand is high for homes in Nebraska, with homes selling in a median of just 30 days.

According to Realtor.com's Affordability and Homebuilding Report Cards, Nebraska ranked seventh among all states, receiving a B rating overall. Having accounted for 0.7% of all U.S. permits in 2024 despite representing only 0.6% of the population, construction remains active in the Cornhusker State. However, despite a significant increase in the number of homes for sale (+7.2% year over year), inventory continues to fall short of demand. With an average of just 2 months of supply, Nebraska remains a firm seller's market, pushing prices up and limiting choices for buyers.

While home prices are modest compared to many other states, property owners in Nebraska facehigher property tax rates. At an average effective rate of 1.50% of home value, Nebraska property taxes are the ninth highest nationally. This rate exceeds the U.S. average of just under 1%, and outpaces all neighboring states, where rates range between 0.49% and 1.43%.

Foreclosure activity in Nebraska remains relatively low, at one filing per 7,506 housing units, a rate well below the national rate of 1 in 3,871. These figures point toward a stable housing market where homeownership costs remain manageable for most owners.

Relative to its border states, Nebraska's real estate market offers affordable options for nearly all investors. Diverse opportunities exist across the state, from urban areas like Omaha to small towns like Chadron, with each location offering unique advantages and considerations. For potential investors in Nebraska's housing market, the following locations may have the most potential for maximum returns on investment:

• Omaha: Midtown Omaha area boasts historic architecture and proximity to major employers such as the University of Nebraska Medical Center. This area has experienced consistent property value appreciation due to ongoing revitalization efforts and a strong local economy.

• Lincoln: Lincoln's real estate market benefits from a steady influx of students, faculty, and staff associated with the University of Nebraska. Areas close to the campus have seen increased demand for rentals, leading to higher occupancy rates and rental yields. The city's overall economic stability further supports property value growth.

• Grand Island: Grand Island is experiencing growth driven by industrial expansion, particularly in the manufacturing and logistics sectors. This economic development has led to increased demand for housing, both for purchases and rentals, making it an attractive area for residential real estate investments.

• Kearney: Kearney's economy is supported by institutions like the University of Nebraska at Kearney and Good Samaritan Hospital. These organizations attract a steady stream of residents, ensuring consistent demand for housing.

• Hastings: Hastings offers a more affordable entry point for investors, with lower property prices compared to larger cities. This affordability, combined with a stable local economy, makes it an attractive option for both development and rental investments.

• Columbus: Columbus benefits from its proximity to Nebraska's agricultural industry, with many residents employed in farming and related sectors. This economic base supports steady demand for housing, particularly in suburban areas, offering opportunities for residential development.

• Fremont: Fremont's location as a commuter town to Omaha makes it appealing for residents seeking more affordable housing options while maintaining access to urban amenities. The city's suburban charm and community-focused atmosphere contribute to its attractiveness for residential development.

• Scottsbluff: Scottsbluff offers rural development incentives aimed at attracting new residents and businesses. These incentives, combined with the area's natural beauty and recreational opportunities, make it an appealing location for residential property development targeting those seeking a rural lifestyle.

• North Platte: North Platte serves as a transportation and logistics hub, with significant rail and highway infrastructure. This location supports broader economic activity and drives demand for housing, particularly for workers in the transportation sector, presenting opportunities for residential development.

• Bellevue: With a median income of $87,343 and a median property price of $295,000, Bellevue offers an attractive income-to-home price ratio. Bellevue's strong school districts, low crime rates, and proximity to Offutt Air Force Base ensure high demand for family-oriented properties and military housing.

The real estate market in Nebraska experiences moderate home sales, with the average days on market estimated at around 30 days. Still, some places, such as Omaha and Lincoln, experience faster sales with many homes selling in just 2-3 weeks. Throughout the Cornhusker State, the homes that tend to sell the fastest typically have the following features:

Zoning laws and permitting requirements for different land uses vary by jurisdiction in Nebraska. This means it's important for investors to verify local regulations before making any modifications or selling. Note that some jurisdictions have strict zoning codes, while others have more lenient laws and permitting requirements. In many areas across the state, certain changes to property use or structures may require special permits, public hearings, or approval from the local zoning board.

If you're planning to invest in the local property markets in Nebraska, obtaining a zoning compliance letter may help you avoid potential issues with zoning or use violations. A zoning compliance letter (known as a zoning verification letter in some municipalities) is an official document that typically confirms a property's compliance with local zoning laws and permitted uses. Buyers often request this letter during the due diligence process to ensure there are no legal issues or violations associated with the property.

The following information describes the disparities between different Nebraska municipalities, including which areas have strict, less strict, and more moderate zoning laws, permitting requirements, or other limitations:

• Areas with strict zoning laws: Jurisdictions like Omaha have strict zoning laws that tightly regulate various land-use options. Such locations typically have well-defined residential, commercial, and industrial zones, which can limit how a property may be used or altered. Although these rules are intended to maintain neighborhood character and manage urban growth, they can also be restrictive for developers looking to repurpose or rezone properties for different uses.

• Jurisdictions with less bureaucratic zoning laws: Less bureaucratic locations, like Nance and Madison Counties, have more relaxed zoning regulations than some other parts of the state. In these locations, zoning laws are often less detailed, allowing for more flexibility in land use and property development. As a result, developers in these areas usually find it easier to obtain permits and approvals for construction and renovation.

• Areas requiring a special permit via a public hearing and approval from the zoning board: Some areas in Nebraska require property owners or developers to seek special permits for certain types of construction or property use. This often involves a public hearing where stakeholders can voice concerns or support the proposed changes. The local zoning board or other governing body will review the proposal and make a decision based on local regulations and community input. This process can take additional time and may be necessary for more significant alterations or developments, such as changing the use of a property from residential to commercial or building larger structures in residential zones. Special permits are often required in locations such as Lancaster County (which includes the City of Lincoln).

• Areas where a Certificate of Occupancy is mandatory before legal occupation: A Certificate of Occupancy (CO), is an official document that verifies that a building or home complies with local building codes, zoning laws, and safety standards. In the Cornhusker State, a CO is typically required in most municipalities before a property can be legally occupied following the completion of new construction, major renovations, or use changes. For instance, a CO inspection is mandatory in Omaha before any new business opens or a building's use changes. In the City of Lincoln, any new or changed occupancy triggers a CO requirement to confirm compliance with building and zoning codes.

• Places where historic commission approval is required for certain renovations and material usage: In cities and neighborhoods with historical significance, properties may fall under the jurisdiction of a historic commission tasked with preserving the character of historic districts by regulating renovations, material usage, and changes to a building's appearance. In these areas, homeowners or developers planning to make alterations to properties must seek approval from the local historic commission before proceeding with renovations. For example, in the City of Lincoln, exterior renovations, material changes, and alterations to properties with historic designations require a Certificate of No Material Effect or a Certificate of Appropriateness.

In order to avoid legal issues and maximize property value, home sellers and developers in Nebraska must comply with local zoning laws, building permits, and occupancy requirements. The following are categories and examples of the different regulatory climates throughout Nebraska's housing markets:

Development-Friendly Areas

These regions are characterized by streamlined permitting processes, zoning flexibility, and proactive local government support, making them attractive for development projects. Examples include:

• Lincoln: Lincoln is considered development friendly due to its proactive zoning laws and simplified permitting procedures. The city's zoning codes provide ample flexibility for residential and mixed-use projects. Additionally, Lincoln has a history of encouraging sustainable development and economic growth through its well-defined urban growth boundaries.
• Kearney: Kearney's zoning ordinances are designed to promote compatibility between residential, commercial, and industrial areas. The city's planning department works closely with developers to ensure projects align with community goals while minimizing bureaucratic delays.
• Bellevue: Bellevue's City Council actively backs new development through its Affordable Action Housing Plan (AHAP) and streamlines applications through an online portal. The city also encourages economic growth via its LB 840 Economic Development Program.

Moderately Regulated Areas

These locations have a balanced approach between regulation and development. While some projects may require additional review and permitting in these areas, the process is generally predictable and manageable. Examples include:

• Hastings: Hastings has moderately strict zoning codes that regulate residential and commercial development. While the city's permitting process is fair, larger developments, particularly multifamily projects, may require additional review from local authorities.
• Norfolk: Norfolk offers relatively balanced zoning laws that cater to both residential and commercial development. However, mixed-use and higher-density residential projects often face additional zoning reviews and public hearings before approval.
• Waverly: Waverly's zoning regulations are designed to maintain residential neighborhood character while allowing for some flexibility in land use. Developers seeking to build commercial or mixed-use properties may need to undergo additional community review and zoning adjustments.

Highly Restrictive or Bureaucratic Areas

These municipalities typically have more layers of oversight and complex zoning laws. Development in these areas can be time-consuming, requiring community input, detailed documentation, and multiple levels of approval.

• Polk County: Polk County enforces strict zoning regulations that govern land use and construction. Zoning laws are designed to ensure compatibility with neighboring properties, making it more difficult to initiate large-scale developments. Projects in this area often face detailed approval processes.
• Sarpy County: Known for its thorough zoning and land-use regulations, Sarpy County requires developers to seek approval from planning commissions and other governmental bodies. Large residential or commercial projects often face delays due to the county's detailed zoning restrictions and public review processes.
• Douglas County: Douglas County (which includes Omaha) has complex zoning laws, especially in historically significant areas or residential neighborhoods. New development often requires public hearings, zoning board reviews, and detailed design approvals, making it a more bureaucratically challenging area for developers.

Regulatory Climate Factors

Whether you're planning a flip, renovation, or new development, the local regulatory climate can make or break project timelines. With the regulatory climate varying from one neighborhood to another, investors must be aware of the hurdles in each jurisdiction before taking action. Being aware of the prevailing regulatory climate in the local housing market can help you prepare for any hurdles that may potentially reduce profit margins or extend project timelines.

Below is an overview of key regulatory factors that impact property development in Nebraska, along with the areas where these factors are most commonly found.

*NIMBYism - Not in My Backyard

The following are the most effective resale and flipping strategies for maximizing profit in Nebraska's housing market:

To succeed as a seller in the Nebraska real estate market, your pricing strategy should match the conditions and climate of the local market and the property's specific advantages. Regardless of the goal (spark competition, test profit margin potential, or sell quickly), aligning with recent comparables (comps) and adapting to local buyer psychology are some of the most reliable ways to attract serious offers while protecting your bottom line.

To set the best price for your property, it's recommended that you consult with an experienced local real estate agent or certified appraiser. These professionals can compare active, pending, and recently sold comps from the past 90 days in your neighborhood and consider current inventory, demand metrics, and other relevant factors, all of which you can use to set the right asking price.

Generally, the following are effective pricing strategies that may be used to attract buyers and maximize value when selling properties in Nebraska's local real estate markets:

Maximizing profits when flipping homes in Nebraska depends on adopting the right pricing strategy for the local market of the subject property Therefore, sellers must research and understand current market conditions before adopting a flipping or resale approach.

The table below indicates the appropriate approach for different types of market conditions that may exist in Nebraska:

In Nebraska, the real estate market is impacted by several key factors, including the following:

Economic Factors

Housing demand remains resilient in Nebraska, with the labor market still tight by national standards. The statewide unemployment rate of just 3% was among the lowest in the country. Combined with steady wage growth, these economic factors help offset affordability pressures from higher prices and sticky mortgage rates.

On the supply side, construction is active but still falls short of the state's high demand. The Census Building Permits Survey shows Nebraska issued 10,479 residential building permits in 2024. While a solid output for a small state, it's not yet enough to fully relieve pressure largely driven by fast-growing metros. Overall, considering the economic status of the state and inflation rates, buyers remain cautious about investing in Nebraska's red-hot real estate markets.

Demographic and Social Factors

Nebraska recently crossed the two-million population mark, with the latest growth heavily driven by international migration. For instance, the Omaha metro area alone, comprising eight counties, now has more than 1 million residents. More people are moving to urban areas like Omaha and Lincoln for jobs and education, which creates high demand for entry-level homes, duplexes, small apartments, and suburban single-family homes. Prices for properties in both cities have been steadily rising.

Regulatory and Legal Framework

Nebraska passed the Municipal Density and Missing Middle Housing Act in 2020, which requires cities to allow more housing options like duplexes and small apartment buildings. As a result of this change, Omaha now allows ADUs through a relatively straightforward approval process, while Lincoln permits ADUs that meet certain conditions.

Taxation and Fiscal Policy

Recent tax packages (LB754 and LB243) cut income and property tax burdens over a multiyear phase-in, which has improved after-tax earnings for owner-occupants and investors. Lawmakers in the state also introduced a First-Time Homebuyer Savings Account bill this year, which would give tax benefits to people saving for their first home.

Housing Policy and Government Programs

The Nebraska Investment Finance Authority (NIFA) remains supportive of end-user housing demand through fixed-rate mortgages and down-payment and closing-cost assistance (Home Buyer Assistance Program). Similarly, local programs such as NeighborWorks Lincoln layer on down payment help that widens the buyer pool for modestly-priced homes.

For developers, the Middle Income Workforce Housing Fund offers grants to build homes for middle-income families, with fresh awards announced in mid-2025, directly supporting housing starts in Douglas, Lancaster, Sarpy, and beyond.

Infrastructure and Development Trends

Big tech investments are creating new housing demand in Nebraska. For instance, Google proposed spending about $930 million in Nebraska last year, with facilities in Omaha, Papillion, and Lincoln. Meta is also expanding its footprint in Nebraska, creating new jobs and investing in its Sarpy County data center. These projects spark economic growth by creating construction jobs and long-term tech jobs in the state. In addition, transportation projects like the Lincoln South Beltway and Omaha's planned streetcar system are making some areas more attractive for redevelopment, especially near downtown Omaha.

Market Sentiment and Investor Behavior

Investor sentiment in Nebraska has moved from frantic bidding to cautious optimism in recent times. In addition, home price appreciation has slowed from double-digit rates to low single digits, and transaction volumes have retraced by mid-teens percentages year over year, which indicates a potential transition toward a balanced market with more negotiating power for buyers.

The Nebraska real estate market offers diverse opportunities for those looking to invest in the state. Urban cores like Omaha (Midtown) and Lincoln benefit from universities, medical centers, and ongoing revitalization, while regional hubs, such as Grand Island, Kearney, Hastings, Columbus, Fremont, Scottsbluff, North Platte, and Bellevue, provide attainable entry prices with reliable renter and end-buyer pools. For investors or homeowners looking to sell quickly, the properties that tend to move fastest statewide sit on larger lots, have 3-4 bedrooms, 1,800-2,500 square feet of living area, modern kitchens and bathrooms, and energy-efficient features.

Since zoning rules vary by jurisdiction, investors are advised to verify zoning, permitting, Certificate of Occupancy requirements, and any historic-district constraints before investing. Additionally, with buyers often requesting zoning compliance letters during their diligence, developers and investors are advised to obtain zoning compliance letters to assure potential buyers of compliance with all local land-use requirements.

Beyond complying with local zoning laws and permitting requirements, sellers who want to maximize profits should adopt effective flipping, resale, and pricing strategies that match local conditions.

Overall, though Nebraska's real estate market remains one of the hottest in the country, market sentiment and investment behavior in the Cornhusker State indicate a transition toward a more balanced market that may soon start to tilt the scales in favor of buyers.