Seth Harlan pays $1,200 a month for a one-bedroom apartment on Lincoln’s east side. Another $200 covers utilities. At 26, the line cook spends nearly half his income on rent.
His 2006 Kia Sportage, with a shattered back windshield, sits outside. A $400 repair would strain his budget. He eats meals from work to avoid grocery bills. One unexpected expense could force him to miss rent.
“It’s almost impossible to live on this side of town if you’re in my financial situation,” he said.
Prices doubled, wages didn’t
A recent analysis showed home prices in Lincoln’s metro area have at least doubled in every ZIP code over the past 20 years. Meanwhile, the county’s median household income, adjusted for inflation, has slightly declined since 2000. The median home value increased by 43% during that time.
Lancaster County now has the highest price-to-income ratio in Nebraska. Harlan, who grew up here, said the numbers no longer make sense. At 19, splitting a $945 rent with three roommates, he felt stable. Now, he calls that period “the best I’ve ever lived.”
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The city remains affordable by national standards. For longtime residents, however, stagnant wages and rising costs have pushed homeownership out of reach. Supply shortages and post-pandemic market changes have worsened the problem.
New apartments are under construction, but most target higher earners. Harlan faces a choice: pay more for amenities or save in a rundown unit. He’s considered moving back in with friends, but most are coupled up or still living with parents.
A city of renters, not owners
Housing in Lincoln has changed significantly. In 2005, the city approved 958 permits for detached single-family homes. Last year, that number fell to 530—a 44% drop. Apartment permits, meanwhile, rose from 192 in 2005 to 1,181 in 2023.
Permits for townhomes and duplexes, pitched as a cheaper homeownership option, lagged behind both. Some of the pressure on new homebuyers can be traced back to that single-family supply issue.
Nearly half of Lincoln renters spend over 30% of their income on housing. For Harlan, owning a home—even a modest one—feels unrealistic. “I just want a living room, a bedroom, a basement and a kitchen,” he said. “I don’t need a backyard.”
His father bought his first house at 21. Harlan, now five years older, can’t imagine doing the same. Residents who were able to buy a home when interest rates were lower now find themselves stuck in “mortgage handcuffs,” unwilling or unable to move into a new home with higher interest rates.
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Existing homes in Lincoln sell in 13 days on average, compared to 45 days for new construction. Charlie Wesche, CEO of NeighborWorks Lincoln, described it as “a tale of two markets.” Sellers of older homes receive multiple offers, often above asking. New builds sit longer, sometimes selling below list—but usually at prices higher than existing homes.
Jake Hoppe, whose development company focuses on affordable housing, said the numbers don’t favor entry-level homes. A basic house costs $225,000 to $240,000 to build, excluding land. Margins are thin. Adding higher-end finishes—a fireplace or tile—doubles profits. “There’s not much incentive to build for the low-end market,” he said.
Local leaders are working to increase wages. Jason Ball, president of the Lincoln Chamber of Commerce, said recruiting employers in agritech, advanced manufacturing, and IT could help. Eric Thompson, an economics professor at UNL, noted the city’s younger workforce and public-sector jobs keep wages lower. State employees, he explained, often accept lower pay for job security.
For Harlan, the message is clear: hard work alone won’t close the gap. “I was told if I work hard, if I do something I love, if I put in extra hours, I’d be able to save and get what I want,” he said. “Lincoln isn’t making that possible anymore.”
As housing costs rise, some residents explore alternatives. Choosing an engagement ring that fits a budget becomes one of many financial decisions shaped by the city’s shifting economy.