OMAHA, Neb. — Apartment construction in Omaha is booming at a time when many of the nation’s largest metro areas are seeing sharp declines in multifamily development.

According to a new RentCafe report, more than 3,300 new apartments are expected to be delivered in the Omaha area by the end of 2025, representing an 80% increase over last year. That surge ranks Omaha No. 7 nationwide for apartment construction growth.

Lincoln is also making headlines, with developers on track to complete just over 2,100 new apartments this year — a 107% increase and the fourth-largest year-over-year jump among smaller U.S. cities.

Developers and market watchers say the surge is no accident. Rising single-family housing costs and shifting lifestyle choices are driving more residents toward renting.

Jerry Slusky, a long-time Omaha developer, said the RentCafe figures reflect what he’s observed in other industry reports. “The entire multi-family rental market has had and continues to have a tailwind the kind of which the market has not had on such a consistent basis for a long time,” Slusky said.

He pointed to a central factor: the cost of home ownership. “The cost of building and financing single-family homes for ownership have jumped up in the last three years and many people simply can’t afford to own a home. Therefore, they’re renters by necessity, not necessarily by choice, and that’s what’s driving the market,” he explained.

But necessity isn’t the only driver. Many younger residents are intentionally choosing rentals for the flexibility and convenience they offer. “Some younger people also don’t want the headaches — repairs, snow shoveling and lawn mowing — that can come with home ownership. That’s the renter by choice, and it’s growing by leaps and bounds,” Slusky said.

Data also reflects a broader shift in homeownership trends. Where the U.S. homeownership rate once hovered around 70% for decades, Slusky noted it has now dropped to about 65% — and could fall even further. “I’ve been told it will reach 50% in the not-too-distant future,” he said.

While Omaha and Lincoln ride a wave of apartment construction, the picture looks very different in larger Midwestern metros. Chicago, Madison, Wisconsin, and Minneapolis are leading the nation in apartment construction declines. Overall, only about 11% of new apartments nationwide will be built in the Midwest in 2025.

Instead, much of the new construction is concentrated in the South and West, which together account for nearly 80% of all new multifamily units. New York City leads the nation for the fourth straight year, with more than 30,000 new apartments projected to open this year. Texas and Florida alone are expected to contribute 30% of the country’s total new units.

The contrast underscores how affordability challenges and regional migration patterns are reshaping the U.S. housing landscape. For Omaha, the construction boom signals confidence from developers that the demand for rental housing will remain strong for years to come.

Originally reported by Julie Anderson in Omaha.