North, South Omaha See Home Price Gains

A report from The University of Nebraska at Omaha has found that home prices have appreciated in North and South Omaha at a faster clip than the rest of the city.

Steven Shultz, a professor of real estate and land use economics at UNO, said that looking at housing markets at the neighborhood level provides a deeper understanding of what is going on across an entire city.

“In a city the size of Omaha, you have a lot of heterogeneity,” Shultz said.

North Omaha saw the highest percentage increase in value, at 22 percent, more than double of the overall growth of 10.3 percent. South Omaha followed with 9.5 percent.

North and South Omaha’s housing markets were left behind following the housing crash, partly because these areas had more subprime lending and subsequent foreclosures.

“Since 2011, North and South Omaha started to recover, they have performed better than the rest of Omaha,” Shultz said.

Supply constraints mean that buyers who may not have thought about either of the neighborhoods are considering making a purchase there. Also, community investment is bearing fruit as well.

Homeowners in these areas now can refinance mortgages or choose to put their homes on the market. The key to a healthy market, though, is metered growth so new homebuyers can still afford their first homes.

“You may get more sellers trying to capture the price gains and sell their homes if they can find a place to go for cheaper,” Shultz said.

The report can be read here.