OMAHA — The Omaha metropolitan area topped a list of hottest housing markets in a new national analysis by U.S. News & World Report.

That’s up from the No. 3 spot in the mid-2024 report, says Patrick Duffy, the publication’s senior real estate economist, who revealed the latest rankings in an article published this week. Metro areas who followed Omaha: Austin and Houston (Texas); Charleston (South Carolina), and Denver (Colorado).

Duffy, who lives in southern California, said in an interview that he was surprised to see Omaha take the top spot, but noted that local experts he spoke to were not so shocked. What stood out to him in his discussions about the Omaha market was an “unusual level of collaboration” from people in the industry.

As an example, he said, the Metro Omaha Builders Association (MOBA) brings together competitors to work on common issues such as how to lessen government regulation in homebuilding and the upcoming Spring Parade of Homes.

“It was easy to get a sense of why this ‘big small town where handshakes mean something’ is becoming more than a sleeper hit,” he said.

Big-City Amenities

Nationally, Duffy said, a tightening job market has employers regaining the balance of power so working remotely full time has become less a consideration for today’s home buyers. He said factors defining a hot market are returning to more traditional metrics such as local demand, supply and financial considerations.

“Whether in Nebraska or South Carolina, what these hottest markets seem to share are big-city amenities without the high housing costs of MSAs closer to the megacities along the West and East Coasts,” he wrote.

Relative to other places, Omaha offers a low unemployment rate, cost of living and a “practical process” to encourage new housing developments at a lesser risk to builders, Duffy said.

He cited Nebraska’s unique Sanitary Improvement District law as contributing to the homebuilding pace. An SID essentially is a political subdivision outside the city limits that can issue bonds to fund infrastructure and levy taxes and special assessments on homeowners.

The article quotes Alec Gorynski, vice president of the Greater Omaha Chamber of Commerce, who says of the metro area: “We have something for anyone, including urban vibrancy, great suburban neighborhoods, historic neighborhoods with character and family dynamics and tranquil spaces as well.”

Gorynski said the larger challenge is recruiting new employers and workers — and keeping those here from leaving for greener pastures.

According to the U.S. News & World Report analysis, the Omaha metro’s overall housing market index score rose 0.7 points from January 2024 to January 2025 — from 75.5 to 76.2. During the same time period, the score for the nation fell by 0.8 points to 66.6 this past January.

The analysis, based on January data pulled from the U.S. News Housing Market Index, which incorporates a wide array of data points and provides what the author said is a simple-yet-comprehensive way to rank more than 50 metropolitan statistical areas (MSAs) on a scale of 1 to 100.

Parade Of Homes

Metro areas also were ranked on subindexes, or more specific measures that point to the hottest market. The Omaha area ranked No. 1 for financing, a subindex that considers such variables as construction costs, affordability, builder expectations and housing supply. It ranked No. 6 for both housing demand and resiliency.

The report said that since hitting a record high of $325,000 in June, the median home sales price in Omaha has fallen to $304,000. It said home prices still rose 4.8% year-over-year, while the nation’s rise was 4.2% to $419,000.

The Omaha area’s 2025 Spring Parade of Homes — which starts this weekend and showcases the latest construction and home design trends — includes 61 houses priced from $280,000 to $2 million. Officials said the event, a partnership between MOBA and Build Omaha, is the largest parade to date and a sign of an active market.

The parade encompasses 43 neighborhoods. Participants over two weekends, March 29-30 and April 5-6, can tour the homes at no cost to view the properties and connect with local builders and remodelers.

Median monthly rent in Omaha also has jumped 4.3% in a year, to about $1,350, the report noted.

This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/briefs/u-s-news-world-report-puts-omaha-ato...