Omaha-Council Bluffs, NE-IA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Omaha-Council Bluffs, NE-IA, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses with mortgages backed by Fannie Mae or Freddie Mac. The HPI value for a particular geographic area is the average of house price appreciation for all single-family properties in that area. The HPI covers all nine census divisions and is calculated monthly.

As of December 2020, the Omaha-Council Bluffs, NE-IA HPI was 176.4, up 0.8% from November and up 5.1% from December 2019. This represents an increase in home equity of approximately $5,100 since December 2019 for the typical homeowner in the region with a mortgage backed by Fannie Mae or Freddie Mac. Home prices in the Omaha-Council Bluffs metro area have been on the rise since bottoming out in 2011 and are now at their highest level since 2007, just before the start of the Great Recession.

There are several factors driving the increases in home prices in Omaha and Council Bluffs. The region has seen strong economic growth over the past few years, with low unemployment and rising wages. This has led to more people moving to the area in search of better job opportunities and a higher quality of life. The tight housing market has also contributed to rising prices as there are more buyers than there are homes available for sale leading to increased competition and bidding wars on properties that do come on the market.

Investors have also played a role in pushing up prices as they have been buying up properties to convert into rental units which has further tightened availability and put upward pressure on rents. While these trends have made it difficult for many potential buyers to afford a home in recent years, those who already own a home have seen their equity increase significantly as values continue to climb