According to new data released by U.S. News and World Report, Omaha is officially the hottest housing market in the nation. Scoring 76.2 on the overall Housing Market Index, Omaha outranked bigger metro areas like Austin and Houston, driven by rising demand, constrained supply and strong financial fundamentals.

The top five markets are:

• Omaha, Nebraska – 76.2
• Austin, Texas – 72.3
• Houston, Texas – 72.1
• Charleston, South Carolina – 71.6
• Denver, Colorado – 71.5

Key factors fueling the area’s growth include steady job gains, over 12,000 nonfarm positions in 2024 alone, plus a low unemployment rate of 2.8% versus the national 4.1%. On the housing front, the city’s median sale price of $304,000 rose 4.8% year-over-year, while new construction, supported by Nebraska’s Sanitary and Improvement District system, remains robust.

With the Omaha-Council Bluffs Metro Area just crossing over the one million population threshold and healthy job growth, senior vice president of economic development for the Greater Omaha Chamber of Commerce, Alec Gorynski, to U.S. News and World Report 

 said he’s not surprised by Omaha’s top ranking.

Despite a slight uptick in mortgage delinquencies now at 3.3%, Omaha still sits below the national average of 3.5%, showing its position as a relatively stable housing market. Jessica Sawyer, president of the Omaha Area Board of Realtors, said that buyers are getting used to higher mortgage rates. However, rising home prices make it difficult for first-time purchases and listings priced above $500,000 are new for the area.

Omaha’s median rent is also surging, with a 4.3% year-over-year increase to $1,348 per month. Even with this increase, however, the median rent is over 30% lower than the national level of $1,968.

“We have something for anyone, including urban vibrancy, great suburban neighborhoods, historic neighborhoods with character and family dynamics and tranquil spaces as well,” said Gorynski.