Omaha, Nebraska's multifamily sector appears to have entered a period of slowdown, as more supply enters the market.
Average asking rents increased by 4.1 percent year-over-year and 1.6 percent quarter-over-quarter to $1,285 per unit, as highlighted in a report from CBRE. While that might seem like welcome news to the market, the CRE firm noted that the annual rate of growth is decelerating.
"The average sale price per unit has slowed and is now $95,000 per unit in the local market," CBRE explained.
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It also wasn't encouraging that vacancy ticked up by 30 basis points to 6.2 percent. In particular, the downtown Lincoln area showed the most softness, with its 88.4 percent occupancy. In comparison, the highest occupancy was in downtown Omaha, maintaining a 94.8 percent rate.
The trends come as inventory continues to grow. In the second quarter alone, 1,351 multifamily units were delivered in Omaha. Also, 3,380 units across 17 properties were under construction, which accounts for four percent of the total inventory.
"By submarket, the greatest number of units in the construction pipeline are located in the Downtown, Central and Council Bluffs submarkets with 33.2%, 20.0% and 17.7% of the total number of units, respectively," CBRE said.
Some projects that are scheduled to be delivered later in 2025 include 384-unit The Grove Apartment Homes and 329-unit The Arthur.
MLG Capital made the largest recent purchase, acquiring a 220-unit property in Brookfield for $37 million. That was followed by two others bought by Bellino Enterprises for $15 million and $7.5 million, respectively, which combine for 248 total units.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
