Forbes said last week, “Looking to buy a house, but think house prices are going crazy? You’re not wrong. Housing prices are rocketing upwards across the country, showing their biggest annual gain since 2005. As a result, existing homeowners add to their housing wealth, while younger, less affluent, and nonwhite buyers face little supply and rising costs.”
“Housing price pressures are found across the country. According to the Case-Shiller index, single-family home prices rose nationally by 13.2% in the year ending March 2021. That’s for the entire country, from Omaha to Miami, not just specific hot urban markets.”
The rise in home prices in Omaha and nationally has led to some pretty hefty property tax increases here in Nebraska. KETV Omaha spoke with homeowners, and many are seeing double-digit increases, and one was up 23% from last year. The increases are due to the rise in sale prices, and the law dictates taxes must be based 100% on market prices. Unfortunately, some recent sales are not in the database yet. That means we will see a continuation of higher assessed valuation next year.
According to a national study from a real estate company, rent is up in the Omaha metro by over 5%. It’s a jump from the 1% yearly increases before the pandemic.
“With all the changes in the last couple of years, I’ve had to increase my rent. I just can’t cover the expense if I don’t,” says Rick McDonald, an Omaha landlord and vice president of the Metro Property Owners Association.
McDonald says most of his tenants stay on his properties for 7 to 17 years, and part of the reason they stay is because rent is low. So now he is raising rents.
He says there are a lot of reasons for that. “The cost of the house is going up. Property taxes have gone up an awful lot in the last couple of years, and insurance has gone up—even building materials. You can’t buy a faucet; you can’t get lumber and stuff. The price is really high. Not to mention the contractors we hire are upping their prices too,” says McDonald.
For some landlords, there is another problem. There has been a moratorium on evictions. Unfortunately, the end keeps getting extended. President Joe Biden announced Thursday the eviction moratorium would be extended through the end of July, causing fear in landlords across Omaha.
Jeff Schaben, the Red Key Real Estate, and Property Management owner, said, “while some landlords can manage without collecting rent temporarily, others simply can’t.
“You have some landlords; this is their second source of income, and they can kind of weather the storm, but you have other people who are a little scared,” Schaben said. “I have one woman who relies on her rental income. Her husband has passed, and this is her only source of income. She’s pretty scared.”
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