{"id":182567,"date":"2025-05-05T14:31:36","date_gmt":"2025-05-05T20:31:36","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=182567"},"modified":"2025-05-05T14:31:40","modified_gmt":"2025-05-05T20:31:40","slug":"omaha-real-estate-market","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/omaha-real-estate-market","title":{"rendered":"Why Out-of-State Investors Are Targeting Omaha For Steady Cash Flow"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I was recently asked by a fellow investor what I thought of the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/omaha-council-bluffs-ne-ia?city=Omaha&amp;state=NE\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Omaha, Nebraska<\/span><\/a><span data-preserver-spaces=\"true\">, market and if it was a good place for out-of-state investors to find <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\"> or <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-appreciation-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appreciation<\/span><\/a><span data-preserver-spaces=\"true\">. I looked at price, rent, growth, and supply data from the Census, the Bureau of Labor Statistics, and the Building Permit Survey to find out.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Overall Economy<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The first thing I look at when analyzing a market is its job growth. Are companies moving into the area (or being created) and hiring more people? The answer is fascinating.<\/span><\/p>\n\n\n<p><iframe title=\"Omaha-Council Bluffs, NE-IA Jobs\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-ROePy\" src=\"https:\/\/datawrapper.dwcdn.net\/ROePy\/3\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"400\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}}))}();\n<\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In the past five years, Omaha has seen a modest 1.1% increase in total nonfarm jobs. So what\u2019s happening? <\/span><span data-preserver-spaces=\"true\">According to the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bls.gov\/regions\/midwest\/ne_omaha_msa.htm\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BLS<\/span><\/a><span data-preserver-spaces=\"true\">, professional and business service jobs<\/span><span data-preserver-spaces=\"true\">, as well as<\/span><span data-preserver-spaces=\"true\"> financial services jobs<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">appear to be shrinking across the metro area.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">However, the education and health services sector has <\/span><span data-preserver-spaces=\"true\">really<\/span><span data-preserver-spaces=\"true\"> taken off over the past two years, making up for the difference. But why? <\/span><span data-preserver-spaces=\"true\">It\u2019s possible the increase in population (5.4% over the last five years) has<\/span><span data-preserver-spaces=\"true\"> led to increased demand for healthcare services:<\/span><\/p>\n\n\n<p><iframe title=\"Omaha-Council Bluffs, NE-IA Population\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-hv0td\" src=\"https:\/\/datawrapper.dwcdn.net\/hv0td\/2\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"400\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}}))}();\n<\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">After all, the largest employers in the area are numerous different healthcare centers<\/span><span data-preserver-spaces=\"true\">, as well as<\/span><span data-preserver-spaces=\"true\"> the Offutt Air Force Base.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Another thing to note is that Omaha\u2019s unemployment rate (3.5%) is less than the national metro average (4.5%). While the economy may not be as hot as the popular Sunbelt cities, the growing population indicates <\/span><span data-preserver-spaces=\"true\">there is<\/span><span data-preserver-spaces=\"true\"> a high demand for work in this market.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Housing Supply and Demand<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The<\/span><span data-preserver-spaces=\"true\"> next <\/span><span data-preserver-spaces=\"true\">thing I analyzed is<\/span><span data-preserver-spaces=\"true\"> the supply and demand of housing units in a market.<\/span> <span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> can be done<\/span><span data-preserver-spaces=\"true\"> by <\/span><span data-preserver-spaces=\"true\">looking at<\/span><span data-preserver-spaces=\"true\"> the total number of units available and comparing that to the number of actual households.<\/span><\/p>\n\n\n<p><iframe title=\"Omaha-Council Bluffs, NE-IA Household Absorption\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-q1MTY\" src=\"https:\/\/datawrapper.dwcdn.net\/q1MTY\/2\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"400\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}}))}();\n<\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The gap you see between those lines represents the number of vacant units. The smaller the gap, the smaller the vacancy. And a decreasing vacancy means competition for housing is rising \u2014 <\/span><span data-preserver-spaces=\"true\">a great<\/span><span data-preserver-spaces=\"true\"> sign for landlords seeking stable occupancy and long-term rent growth. Take a look at the vacancy rate trend below:<\/span><\/p>\n\n\n<p><iframe title=\"Omaha-Council Bluffs, NE-IA Vacancy Rate\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-zot3O\" src=\"https:\/\/datawrapper.dwcdn.net\/zot3O\/2\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"400\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}}))}();\n<\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Over time, the vacancy rate has decreased. This rising competition for housing can also start to push prices up, which is <\/span><span data-preserver-spaces=\"true\">great<\/span><span data-preserver-spaces=\"true\"> news for investors. Just take a look at price growth over time:<\/span><\/p>\n\n\n<p><iframe title=\"Omaha-Council Bluffs, NE-IA Median Price\" aria-label=\"Interactive line chart\" id=\"datawrapper-chart-mr4yT\" src=\"https:\/\/datawrapper.dwcdn.net\/mr4yT\/2\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"400\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">!function(){\"use strict\";window.addEventListener(\"message\",(function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}}))}();\n<\/script><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This price growth data comes from the U.S. Census (which usually underestimates market price, given the nature of the survey). So, I would also like to point out the price and rent data from Zillow.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Market investment metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median price:<\/span><\/strong><span data-preserver-spaces=\"true\"> $283,000\u00a0<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Median rent:<\/span><\/strong><span data-preserver-spaces=\"true\"> $1,500<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent\u2013to-price ratio:<\/span><\/strong><span data-preserver-spaces=\"true\"> 0.5%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Five-year population growth:<\/span><\/strong><span data-preserver-spaces=\"true\"> 5.4%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Five-year household growth:<\/span><\/strong><span data-preserver-spaces=\"true\"> 8.0%<\/span><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Compared to coastal markets, Omaha offers strong returns at a fraction of the buy-in cost. <\/span><span data-preserver-spaces=\"true\">With an affordable median price, solid median rent, a good labor market, and solid household growth, Omaha is<\/span> <span data-preserver-spaces=\"true\">a <\/span><span data-preserver-spaces=\"true\">great<\/span> <span data-preserver-spaces=\"true\">market<\/span><span data-preserver-spaces=\"true\"> for long-term-focused out-of-state investors.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a class=\"editor-rtfLink\" href=\"https:\/\/www.realbricks.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Realbricks<\/span><\/a><span data-preserver-spaces=\"true\"> makes it possible to co-own high-quality, cash-flowing rental properties in Omaha with no landlord headaches. With just $100, you can start investing passively \u2014 no need to manage tenants, find deals, or fly in from out of state. It\u2019s a game-changer for anyone who wants real estate exposure without the traditional barriers.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Realbricks does the heavy lifting \u2014 from property acquisition to management \u2014 making it perfect for first-time investors, seasoned experts looking to diversify, or busy working professionals. Click to learn more about <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realbricks.com\/how-it-works\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">how Realbricks works<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Like <\/span><span data-preserver-spaces=\"true\">with<\/span><span data-preserver-spaces=\"true\"> every other asset, do your <\/span><span data-preserver-spaces=\"true\">own<\/span> <a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/due-diligence-ultimate-guide\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">due diligence<\/span><\/a><span data-preserver-spaces=\"true\"> on the market and the underlying property before making an investment decision.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I was recently asked by a fellow investor what I thought of the Omaha, Nebraska, market and if it was a good place for out-of-state investors to find cash flow [&hellip;]<\/p>\n","protected":false},"author":613753,"featured_media":182564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1091,7364],"tags":[],"class_list":["post-182567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-housing-markets"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/182567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613753"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=182567"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/182567\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/182564"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=182567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=182567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=182567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}