Omaha Condo Market

[ita]

There was a seminar sponsored by Robert Dailey and his firm McGrath North regarding changes in the condominium laws under LB767 that was made law at the end of last year. Essentially, it substantially shortens the window for buyers to sue developers/builders and makes it more difficult for them to sue on minor building defects. Allegedly, the prior laws made condo development financially difficult; insurance was more expensive and there was added difficulty in getting loans. In addition to the legal changes, a couple real estate agents talk about the condo market and how developers should evaluate their projects. There is an claimed shortage in available units and types of units. The following link is a recording of the seminar.

Developer Condo Seminar 8.11.2

[daveoma]

I don't understand the goal of laws like this. If developers built structures properly, then they wouldn't be subject of a lawsuit to begin with. Furthermore, by removing protections from homeowners, the legislature would be acting against the interests of these property owners. Certainly there must be a better way to make a safe space for developers while protecting homeowners from incompetent builders.

Given that it's more efficient to use existing city services instead of extending them, I think that instead of offering TIF, there should be a tax incentive for developers to increase residential density. In addition, requirements to incorporate greenb elements such as including trees could be used to offset the inevitable consumption of land for building.

[ita]

I don't understand the goal of laws like this. If developers built structures properly, then they wouldn't be subject of a lawsuit to begin with. Furthermore, by removing protections from homeowners, the legislature would be acting against the interests of these property owners. Certainly there must be a better way to make a safe space for developers while protecting homeowners from incompetent builders.

Given that it's more efficient to use existing city services instead of extending them, I think that instead of offering TIF, there should be a tax incentive for developers to increase residential density. In addition, requirements to incorporate greenb elements such as including trees could be used to offset the inevitable consumption of land for building.

The way I understand it, and I have no skin in the game, but the changes were made to help balance the risk between condo developers and buyers. Under the previous statutory construction, developer's risk of litigation was so prolonged that it was extremely risky for condo development. I don't think single family home developers were burdened by the same amount of risk. It's not that condo developers are now indemnified from any claims from homeowners, but their risk of litigation and claims are reduced enough that theoretically, developers will be more inclined to develop condos.

[ricko]

Always, always pay for a home inspection before buying anything. It could save you a mountain of trouble/ money in the long run.

[Brad]

Slow Pace of Omaha Condo Development

https://growomaha.com/weekly-market-rep ... y-11-2024/

Multiple historic buildings were converted into condos – The Brandeis Building, Beebe + Runyan, Kimball Lofts and many others. Several new condo projects were built from the ground up – Rows at SoMa, jLofts on the Market and the twin towers of Riverfront Place along the Missouri River.

It was the golden age of condos in Omaha, and it was especially noticeable downtown. Some Realtors started specializing in downtown condos. There was even an annual condo tour in which busses ferried potential buyers – and curious tire-kickers – from property to property all day long.

And then – just like that – it stopped. The Great Recession of 2008 shut down the condo market and it is yet to recover.

Today, 16 years after the market tanked, condo development remains practically non-existent. The single-family housing market has had several boom years since 2008, but condo development has still not recovered.

[Athomsfere]

We certainly felt the effects when we were looking. There seemed to be exactly three price brackets: ~500k, ~800k, and 2 million +.

And that includes townhomes.

Even then, the pickins were slim. A couple unfinished units at MTC, a few units sold before construction even started...

Omaha really needs to do better with adding these.

[buildomaha]

I recall a grow Omaha episode a few years ago where I remember the guest mentioning a bill in the legislature that was supposed to remove regulatory hurdles to condo construction. I don’t remember if it ended up passing or not.

[Big E]

To my memory, jLofts on 13th and Jackson remains the last new for-sale condos completed in downtown Omaha. Was that 2007?

I feel like this reflects the culture/market of Omaha far more than the regulatory environment.

[Cermak]

To my memory, jLofts on 13th and Jackson remains the last new for-sale condos completed in downtown Omaha. Was that 2007?

I feel like this reflects the culture/market of Omaha far more than the regulatory environment.

Omaha just doesn’t seem like a Condo town, it may become one someday , but not yet.

[Jins123]

To my memory, jLofts on 13th and Jackson remains the last new for-sale condos completed in downtown Omaha. Was that 2007?

I feel like this reflects the culture/market of Omaha far more than the regulatory environment.

Omaha just doesn’t seem like a Condo town, it may become one someday , but not yet.

Before I bought a house in Benson I was strongly looking at a condo downtown/midtown. The condos that were under 250 in midtown (not midtown crossing ones) the North of 30th & dodge ones, the ones on Jackson and Leavenworth would go so quick. I’m sure part of it was the market and the landlords wanting a quick rental turnover but I was alway frustrated that I couldn’t get one.

[Big E]

I’m sure part of it was the market and the landlords wanting a quick rental turnover but I was alway frustrated that I couldn’t get one.

If it makes you feel any better, no one is making money buying a condo for $250,000 and renting it out in Omaha. The 1% rule (for every $100,000 you spend on a property you need $1000/mo in rent to break even) is about as air-tight in Omaha as can be. And there's no way a $250,000 Omaha condo is renting for $2500/mo in this market.

[daveoma]

I recall a grow Omaha episode a few years ago where I remember the guest mentioning a bill in the legislature that was supposed to remove regulatory hurdles to condo construction. I don’t remember if it ended up passing or not.

This is mentioned in the article that Brad provided the link to. I had no idea that condo HOAs were suing developers.

I suppose most people in Omaha would prefer a backyard and a spacious home compared to a condo. It's too bad there's not a more affordable way to build these, so they're more accessible to middle class people. I live in Las Vegas, and there are a lot of condos at every price point, but I suppose that fact belies the obvious that it's a much different place than Omaha.

[Athomsfere]

To my memory, jLofts on 13th and Jackson remains the last new for-sale condos completed in downtown Omaha. Was that 2007?

I feel like this reflects the culture/market of Omaha far more than the regulatory environment.

Omaha just doesn’t seem like a Condo town, it may become one someday , but not yet.

Before I bought a house in Benson I was strongly looking at a condo downtown/midtown. The condos that were under 250 in midtown (not midtown crossing ones) the North of 30th & dodge ones, the ones on Jackson and Leavenworth would go so quick. I’m sure part of it was the market and the landlords wanting a quick rental turnover but I was alway frustrated that I couldn’t get one.

Same story with the 500k - 800k units.

Although, looking at Zillow, it looks kinda better now, but not really.

[Athomsfere]

To my memory, jLofts on 13th and Jackson remains the last new for-sale condos completed in downtown Omaha. Was that 2007?

I feel like this reflects the culture/market of Omaha far more than the regulatory environment.

Omaha just doesn’t seem like a Condo town, it may become one someday , but not yet.

I think the biggest part of this: There aren't really any. And what is there mostly have major issues: Like of the 9 that exist Townhouse and condos) that would fit my needs:

4 are the same project, the ROWHAUS next to Gerda's. The transit / walkability is not very good there. But it is getting better for bike access there.

1 is 1.8 million dollars in downtown. That's that many can afford.

3 look like weird conversions from SFH / duplexes that again lack the sort of amenities I'd expect to see.

Which leaves this one: https://www.zillow.com/homedetails/1024 ... 1526_zpid/?

Which feels like a badly done flip to me. Great location though.

[thenewguy]

To my memory, jLofts on 13th and Jackson remains the last new for-sale condos completed in downtown Omaha. Was that 2007?

I feel like this reflects the culture/market of Omaha far more than the regulatory environment.

Omaha just doesn’t seem like a Condo town, it may become one someday , but not yet.

I think the biggest part of this: There aren't really any. And what is there mostly have major issues: Like of the 9 that exist Townhouse and condos) that would fit my needs:

4 are the same project, the ROWHAUS next to Gerda's. The transit / walkability is not very good there. But it is getting better for bike access there.

1 is 1.8 million dollars in downtown. That's that many can afford.

3 look like weird conversions from SFH / duplexes that again lack the sort of amenities I'd expect to see.

Which leaves this one: https://www.zillow.com/homedetails/1024 ... 1526_zpid/?

Which feels like a badly done flip to me. Great location though.

I dunno, it seems ok? Maybe a little eccentric with the wall coverings and floor but looks nice overall. Then again, I don't think my wife would share in my desire to live downtown, so I'm in no position to seriously critique anything

[Athomsfere]

I dunno, it seems ok? Maybe a little eccentric with the wall coverings and floor but looks nice overall. Then again, I don't think my wife would share in my desire to live downtown, so I'm in no position to seriously critique anything

I'd say it's OK. But for the work I'd expect out of it, maybe over priced.

Point was though: There aren't enough options IMO to judge what Omaha could support. Everything that does get build seems to sell instantly even when not in an ideal location.

[thenewguy]

I dunno, it seems ok? Maybe a little eccentric with the wall coverings and floor but looks nice overall. Then again, I don't think my wife would share in my desire to live downtown, so I'm in no position to seriously critique anything

I'd say it's OK. But for the work I'd expect out of it, maybe over priced.

Point was though: There aren't enough options IMO to judge what Omaha could support. Everything that does get build seems to sell instantly even when not in an ideal location.

On that, I agree 100%. I think if someone really wanted to, they could have a couple new condo buildings go up and would sell fast. The one hang-up here is that I feel like young people don't want to wait for something to be built to buy. They want to see it, buy it, and move in next week (not quite that literal, but close)

[Athomsfere]

On that, I agree 100%. I think if someone really wanted to, they could have a couple new condo buildings go up and would sell fast. The one hang-up here is that I feel like young people don't want to wait for something to be built to buy. They want to see it, buy it, and move in next week (not quite that literal, but close)

As a semi-young-people: I'd agree with this overall.

I would have waited for the ones in Blackstone, because they were perfect. Great location, good size etc...

But that's also a year to wait, to 2 years for gauging interesting and holding a deposit, another year for seeking funding / TIF, another 6 months for zoning changes and red tape, and then 1.5 years of construction.

An exaggeration, maybe... But that would be the biggest issue with many Omaha projects.

With a house, you can just got to rinky-dink McMansion & company, plop down some paperwork, and get a house in ~1 year. Historically at least. And there would have been options for older homes. Neither of these has ever been an option in Omaha for condos / townhomes.

[ita]

I dunno, it seems ok? Maybe a little eccentric with the wall coverings and floor but looks nice overall. Then again, I don't think my wife would share in my desire to live downtown, so I'm in no position to seriously critique anything

I'd say it's OK. But for the work I'd expect out of it, maybe over priced.

Point was though: There aren't enough options IMO to judge what Omaha could support. Everything that does get build seems to sell instantly even when not in an ideal location.

On that, I agree 100%. I think if someone really wanted to, they could have a couple new condo buildings go up and would sell fast. The one hang-up here is that I feel like young people don't want to wait for something to be built to buy. They want to see it, buy it, and move in next week (not quite that literal, but close)

I would reiterate as well, existing condos just do not boast the same amenities some might expect. From what I've seen in more condo heavy markets, there are all sorts of amenities condos downtown do not provide. Arguably, condo developers in Omaha don't have much competition, ie. no motivation to provide such amenities. I just want to see one condo project downtown go up with lots of amenities, see how that performs.

[Athomsfere]

I would reiterate as well, existing condos just do not boast the same amenities some might expect. From what I've seen in more condo heavy markets, there are all sorts of amenities condos downtown do not provide. Arguably, condo developers in Omaha don't have much competition, ie. no motivation to provide such amenities. I just want to see one condo project downtown go up with lots of amenities, see how that performs.

That is true.

Even the nicest condos (Thinking of MTC and Riverside specifically) don't have a ton over location and being modern.

The plus side: HOA fees stay low-ish. In Seattle I've seen HOA fees over $1000 just to get a pool, parking, and concierge.

[ita]

I would reiterate as well, existing condos just do not boast the same amenities some might expect. From what I've seen in more condo heavy markets, there are all sorts of amenities condos downtown do not provide. Arguably, condo developers in Omaha don't have much competition, ie. no motivation to provide such amenities. I just want to see one condo project downtown go up with lots of amenities, see how that performs.

That is true.

Even the nicest condos (Thinking of MTC and Riverside specifically) don't have a ton over location and being modern.

The plus side: HOA fees stay low-ish. In Seattle I've seen HOA fees over $1000 just to get a pool, parking, and concierge.

That is true about HOA fees. The higher HOA fees in town are the condo conversions of older buildings. Higher maintenance and repair costs push those fees up quite a bit. Hopefully, there will be enough condo development downtown that we get some higher amenity condo buildings, but more MTC-like projects with more moderate amenities and, in return, reasonable HOA fees. Maybe with the streetcar, less need for parking space will help control HOA fees as well from needing less maintenance fees for parking facilities. Additionally, if there are project with more amenities like pools, gyms, etc., those are larger scale projects, like 400+ units to help spread out costs and keep HOA fees reasonable.