Omaha Metro Apartment Boom

[ita]

Omaha metro area seeing huge surge in new apartment construction

Joe Dejka
No matter where you look — downtown, midtown, suburbs — new apartment buildings, some of them massive, are rising up and changing the landscape of metro Omaha.

They are transforming the farm fields that ring the metro. They promise to revitalize inner cities, an injection of life to fend off decay. In the suburbs, they can come as a jolt. It’s growth that was anticipated, but it can be disorienting for residents grown comfortable with the tidy green lawns and traditional neighborhoods of suburban life.

Statistically, the surge is huge.

In 2022, an all-time record was likely set for new apartment units approved for construction in the metro area: 3,566.

That was the most for any one year going back 18 years, according to data from the Greater Omaha Chamber. And the 2022 permits for apartment units outstripped the permits for single-family houses, something that hadn’t happened during the previous decade.
...
Data from the last six months suggests that the surge is easing, which could reflect higher interest rates and fears of recession or perhaps the natural cooling-off as the market absorbs the additional apartments. From January through June, a total of 946 apartment units were permitted. If that trend continues for the rest of the year, then the total would return to a level closer to what the area was experiencing four years ago.

[Athomsfere]

Not nearly enough IMO.

https://www.unomaha.edu/college-of-publ ... -rates.php

Omaha was under the national average last year. We need what, 10k of new housing to keep up with demand. So not only do we appear to be in a tight housing market, it doesn't look like we are building enough to get back to normal.

Even San Francisco and Austin are doing better here.

[Dusty]

I had mentioned a while back about encouraging developers to build commercial bays on the bottom of all these apartments. In time, you would strong pockets of density that is walkable.

Instead, we continue to build apartments at record pace as single use. A massive apartment on one corner with tons of car parking and zero bike parking. Good news! You can drive your car one block to the one story strip mall across the street.

We are doing a better job of mixed use apartments in the urban core, but still...

[Garrett]

I had mentioned a while back about encouraging developers to build commercial bays on the bottom of all these apartments. In time, you would strong pockets of density that is walkable.

Instead, we continue to build apartments at record pace as single use. A massive apartment on one corner with tons of car parking and zero bike parking. Good news! You can drive your car one block to the one story strip mall across the street.

We are doing a better job of mixed use apartments in the urban core, but still...

Well, with retail as it is right now I don't think all apartments need ground floor commercial bays. Really you want those along pockets of transit lines, good pedestrian spaces, and local traffic.

[Dusty]

Well, with retail as it is right now I don't think all apartments need ground floor commercial bays. Really you want those along pockets of transit lines, good pedestrian spaces, and local traffic.

Let me correct myself by saying flex space more so than commercial space. Meaning today the ground floor could be residential. in 10 years it could be office, service, or retail space. The key is creating a bottom floor that you can convert based of the shifts of the market.

Some examples:
1. Most apartments offer a laundry room of some sort. Why not attract a laundry mat as a business open to all?

2. Use a bay for long term bike parking. Charge a monthly fee. Residents can choose to haul their bike to their unit or pay for convenience. Outsiders could also use, but residents would have priority and better pricing.

3. Most apartments have a meeting room or party room. Put this on the ground floor so you can lease to event planners and businesses for meetings to generate extra money.

[Garrett]

Well, with retail as it is right now I don't think all apartments need ground floor commercial bays. Really you want those along pockets of transit lines, good pedestrian spaces, and local traffic.

Let me correct myself by saying flex space more so than commercial space. Meaning today the ground floor could be residential. in 10 years it could be office, service, or retail space. The key is creating a bottom floor that you can convert based of the shifts of the market.

Some examples:
1. Most apartments offer a laundry room of some sort. Why not attract a laundry mat as a business open to all?

2. Use a bay for long term bike parking. Charge a monthly fee. Residents can choose to haul their bike to their unit or pay for convenience. Outsiders could also use, but residents would have priority and better pricing.

3. Most apartments have a meeting room or party room. Put this on the ground floor so you can lease to event planners and businesses for meetings to generate extra money.

A private laundry room is way different than a public laundromat. With a private laundry room I can put my laundry in and return to my apartment with a stronger degree of certainty that none of my neighbors will steal my things than if that same room was open to the public. Similar with buildings that have bike parking options or party rooms. A lot of these tend to be amenities that you market as being exclusive to your community, just like apartments today don't open their pools to the public.

Flex space is easy to define in theory, but converting from a residential unit to a retail or restaurant space is quite different architecturally.

[Dusty]

A private laundry room is way different than a public laundromat. With a private laundry room I can put my laundry in and return to my apartment with a stronger degree of certainty that none of my neighbors will steal my things than if that same room was open to the public. Similar with buildings that have bike parking options or party rooms. A lot of these tend to be amenities that you market as being exclusive to your community, just like apartments today don't open their pools to the public.

Flex space is easy to define in theory, but converting from a residential unit to a retail or restaurant space is quite different architecturally.

I get what you mean. Some conversions would be more challenging than others. But building all these single use apartments are no different than single family housing divisions. Once built, it's hard to revamp them. At what point do you challenge these developers to break outside of that cookie cutter single use mindset that promotes car ownership. I get it...They are doing what makes sense for them. Build them fast and cheap = Biggest profits. At some point this city needs to step in a make basic guidelines. Let's use the transit line as an example. What constitutes requirements for a mixed use apartment? 1 mile from transit line, 1/2 mile, etc?

Maybe I'm just a little bitter over my experience in apartment life when we moved to Florida. Every apartment is that all -inclusive resort style. Pay a high price for 10 amenities. You might only use 2 of them. I understand some people like that style of living, but I'm not a fan. For us, the pool was shut down every other weekend, hot tub was broken the entire length of the lease, dryer never worked and they wouldn't fix it, tried to book the party room, but leasing agent didn't want to mess with that and blew us off, car wash onsite (it was a garden hose on the side of a building). Yes, this complex was a hot mess. It's doesn't mean everyone's experiences is like that. I much rather prefer a bare bones apartment with cheaper rent and businesses nearby I can opt in or out of. Whether that be a community pool, small gym, bike parking bay, etc.

In the end of the day, it's important to be building both styles for people to live. I just don't want us to paint ourselves into a corner by stamping the same thing all over town.

[Renovator2559]

I get what you mean. Some conversions would be more challenging than others. But building all these single use apartments are no different than single family housing divisions. Once built, it's hard to revamp them. At what point do you challenge these developers to break outside of that cookie cutter single use mindset that promotes car ownership. I get it...They are doing what makes sense for them. Build them fast and cheap = Biggest profits. At some point this city needs to step in a make basic guidelines. Let's use the transit line as an example. What constitutes requirements for a mixed use apartment? 1 mile from transit line, 1/2 mile, etc?

Maybe I'm just a little bitter over my experience in apartment life when we moved to Florida. Every apartment is that all -inclusive resort style. Pay a high price for 10 amenities. You might only use 2 of them. I understand some people like that style of living, but I'm not a fan. For us, the pool was shut down every other weekend, hot tub was broken the entire length of the lease, dryer never worked and they wouldn't fix it, tried to book the party room, but leasing agent didn't want to mess with that and blew us off, car wash onsite (it was a garden hose on the side of a building). Yes, this complex was a hot mess. It's doesn't mean everyone's experiences is like that. I much rather prefer a bare bones apartment with cheaper rent and businesses nearby I can opt in or out of. Whether that be a community pool, small gym, bike parking bay, etc.

In the end of the day, it's important to be building both styles for people to live. I just don't want us to paint ourselves into a corner by stamping the same thing all over town.

What kind of quality apartments with poor amenities did they have in that area? Here in downtown/midtown, all the different apartment complexes I have visited in downtown; (the Highline, Wire, Brickline, The Atlas) , Are nice apartment complexes, nice and clean community rooms, clean pools are always working, clean gyms, regular sanitation staff cleaning the common spaces, personal dryers and laundry rooms which give no issues, there is no reason to book parties or events, anyone can use them whenever and the community rooms get used up plenty, especially in the weekends. I am also told that maintenance is quick to reply to any cases and repair any issues that arise.
Also, the rent for all these amenities filled apartment complexes is still within the average apartment rent (except Brickline).

[iamjacobm]

I actually think Omaha has had a pretty good amount of recent apartments w/ retail in what would be considered urban areas. Much of what is currently being built in Millwork, the Brickline, the apartments that should be getting going soon by the Flatiorn, the apartments going up in Blackstone, the Swivel apts on 72nd and Dodge has a suite with an insurance agent. Crossroads, Civic Site, and North Downtown master plans include mixed uses.

Notables w/o retail: 48th and Dodge, 39th and Dodge, 38th and Leavenworth, 12th and William, the new Square apartments at 30th and Leavenworth, the apts going up on 24th just north of Leavenworth. Sure a suite or two would have been nice, but I don't see any of those as super egregious misses. Not like they are disrupting retail corridors. The Square apts probably have the best argument having space would be beneficial if Leavenworth corridor continues to build out, but there is a lot of retail that is getting turned just to the west of the site and the space in the Triangle hasn't been fully leased up.

[thenewguy]

To throw the CB perspective into the mix, there are extremely limited options, especially when compared to Omaha. It's been 20 years since I had to look for an apartment but even back then, a 2 bed/2 bath was over 1k per month in valley view/deefield/riverpark. At the time, there wasn't much else besides those 3 main buildings. The majority of the rest were section 8, and we didn't qualify for it because we made too much. There are some more options now, but CB needs more middle-of-the-road options for people looking to not spend a thousand or 1500

[Dusty]

To throw the CB perspective into the mix, there are extremely limited options, especially when compared to Omaha. It's been 20 years since I had to look for an apartment but even back then, a 2 bed/2 bath was over 1k per month in valley view/deefield/riverpark. At the time, there wasn't much else besides those 3 main buildings. The majority of the rest were section 8, and we didn't qualify for it because we made too much. There are some more options now, but CB needs more middle-of-the-road options for people looking to not spend a thousand or 1500

I'm surprised we haven't seen a surge in CB for apartment growth. From what I heard is CB owns a lot of land along Broadway. This area is ripe for great density along the corridor. They don't need to wait for a streetcar extension to make this happen. All it will take is a few good developments to create some excitement.

[Garrett]

To throw the CB perspective into the mix, there are extremely limited options, especially when compared to Omaha. It's been 20 years since I had to look for an apartment but even back then, a 2 bed/2 bath was over 1k per month in valley view/deefield/riverpark. At the time, there wasn't much else besides those 3 main buildings. The majority of the rest were section 8, and we didn't qualify for it because we made too much. There are some more options now, but CB needs more middle-of-the-road options for people looking to not spend a thousand or 1500

I'm surprised we haven't seen a surge in CB for apartment growth. From what I heard is CB owns a lot of land along Broadway. This area is ripe for great density along the corridor. They don't need to wait for a streetcar extension to make this happen. All it will take is a few good developments to create some excitement.

CB is already developing, or at least has proposals for, quite a few developments along the First Avenue trail that would host the streetcar line. I'm not sure if there's been a lot of actual construction on them though, either due to lack of demand or just issues with the developers since I know White Lotus is one of them.

[skinzfan23]

I have wondered that same thing. There were proposals released a few years ago, prob before Covid, but haven't heard anything since. I would think those would fill up almost immediately if built.

[Athomsfere]

Perhaps they are feeling a little gun-shy with the problems they've had getting a project of height for the river front.

[thenewguy]

To throw the CB perspective into the mix, there are extremely limited options, especially when compared to Omaha. It's been 20 years since I had to look for an apartment but even back then, a 2 bed/2 bath was over 1k per month in valley view/deefield/riverpark. At the time, there wasn't much else besides those 3 main buildings. The majority of the rest were section 8, and we didn't qualify for it because we made too much. There are some more options now, but CB needs more middle-of-the-road options for people looking to not spend a thousand or 1500

I'm surprised we haven't seen a surge in CB for apartment growth. From what I heard is CB owns a lot of land along Broadway. This area is ripe for great density along the corridor. They don't need to wait for a streetcar extension to make this happen. All it will take is a few good developments to create some excitement.

CB is already developing, or at least has proposals for, quite a few developments along the First Avenue trail that would host the streetcar line. I'm not sure if there's been a lot of actual construction on them though, either due to lack of demand or just issues with the developers since I know White Lotus is one of them.

nah, no real construction. There was a bulldozer onsite behind Arby's for a day or 2 earlier in the summer, but it has since been removed.

[Dusty]

Are there any new mixed-use developments in Omaha that are condos? Omaha still seems to provide mainly two options: Sprawling single family homes you own and apartments you rent. I think there would be a ton of people who would want apartment style living but own their unit (condo).

[Athomsfere]

Are there any new mixed-use developments in Omaha that are condos? Omaha still seems to provide mainly two options: Sprawling single family homes you own and apartments you rent. I think there would be a ton of people who would want apartment style living but own their unit (condo).

The Civic site might, I think the last proposal had at least some. But they are woefully underbuilt.

[ita]

Are there any new mixed-use developments in Omaha that are condos? Omaha still seems to provide mainly two options: Sprawling single family homes you own and apartments you rent. I think there would be a ton of people who would want apartment style living but own their unit (condo).

The Civic site might, I think the last proposal had at least some. But they are woefully underbuilt.

There haven't been any for several years. Was jlofts downtown the most recent? Anyway, I don't think civic site had any planned, except maybe townhouse style. Noddle's builders district, I thought, has a building or two of apartment style condos, but no details yet.

[Athomsfere]

Are there any new mixed-use developments in Omaha that are condos? Omaha still seems to provide mainly two options: Sprawling single family homes you own and apartments you rent. I think there would be a ton of people who would want apartment style living but own their unit (condo).

The Civic site might, I think the last proposal had at least some. But they are woefully underbuilt.

There haven't been any for several years. Was jlofts downtown the most recent? Anyway, I don't think civic site had any planned, except maybe townhouse style. Noddle's builders district, I thought, has a building or two of apartment style condos, but no details yet.

Yes. I was thinking of those townhouses. While not over retail, it at least lets you buy and walk to new retail.

[Dusty]

As we all mentioned....build, build, build. The market rate is high everywhere, it's not an Omaha thing. More apartments will drive the rent down. The market will eventually flip and investors will panic and sell off some complexes as condos.