Shortage of Affordable Housing in Omaha

Habitat strives to ensure that everyone, everywhere has a decent place to live. Roughly a third of Americans suffer from some type of housing problem, and our community is no exception. There is a critical shortage of high quality, affordable housing in Omaha. The Nebraska Investment Finance Authority’s 2007 Housing Study revealed that the demand for homes among low-income families in Omaha will increase 41.4 percent between 2000 and 2030, compared to a 29.5 percent increase statewide.

The Fair Market Rent for a two-bedroom apartment in Omaha is $710. In order to afford rent and utilities at this level without paying more than the United States Department of Housing and Urban Developed (HUD) recommended 30 percent of income on housing, a household must earn the equivalent of $13.65 an hour. The hourly wage of a minimum wage worker in Omaha is $5.85. This means that the household would need to work 93 hours per week, 52 weeks per year in order to afford their rent.

Four person households that qualify for Habitat’s homeownership program earn approximately $8.80-$16.10 an hour. Those at the lower end of the qualifying range earn much less than is needed to afford even a one- bedroom apartment.

Habitat provides low-income families of all backgrounds with the opportunity to own their own home and break the cycle of intergenerational poverty. By building simple, decent, and affordable homes, Habitat makes homeownership possible for the very low-income. Monthly mortgage payments for Habitat homes range from $350 to $650 and include taxes. The homes, which are between three and five bedrooms, also offer families a home that is appropriate for their family size.

-Megan Mathews