The rising cost of housing is causing significant concern among Nebraskans, with many feeling unable to keep pace. Nebraska currently faces a shortage of 34,000 affordable and market-rate rental units to meet the growing demand, according to experts in the field.
Defining Affordable Housing
The National Low Income Housing Coalition states that 70% of Nebraska’s extremely low-income renters are severely burdened by rent costs, spending over 30% of their income on housing expenses before covering essentials like groceries, childcare, and utilities. With over 61,000 extremely low-income renters in Nebraska and around 250,000 renters statewide, the struggle to find affordable housing is widespread.
Many Nebraskans have shared their experiences with Nebraska Public Media and The Midwest Newsroom, highlighting scenarios where individuals rely on friends, live with multiple roommates, or move in with extended family to save on housing costs.
Jean Shea, a 65-year-old resident of Grand Island, exemplifies this struggle. She currently lives with her ex-boyfriend due to limited options, receiving only $640 monthly from Social Security. Despite efforts by friends to find affordable housing, she remains without a viable alternative.
“I’m trapped,” Shea said. “I don’t know how I’m going to get out of here.”
Jake Hoppe, CEO of Lincoln-based Hoppe Development, notes a shift in who needs affordable housing since 2019. Traditionally, affordable housing required tenants to pay no more than 30% of their gross income on housing, though it can extend to those paying up to 60%.
“They might be a public service provider, a firefighter, a teacher,” Hoppe said. “What we’re finding more and more is that (affordable housing) is looking more like workforce housing than it is low-income housing.”
Workforce housing targets middle-income professionals, such as teachers and police officers, earning between 60% and 120% of the area median income. Even individuals qualifying for market-rate rentals are seeking affordable options due to rising costs and inflation (source).
Creating affordable housing for those earning above 60% of the median income often requires alternative funding, as government subsidies are typically limited to lower income brackets.
Jody Holston, executive director at Front Porch Investments, explains how partnerships with Omaha have leveraged tax increment financing (TIF) to fund housing projects. This public financing method supports redevelopment and community improvements.
“It is one of the few tools that the city has that we can modify to make sure that, if we are using public benefits and public money, that we’re seeing the type of public benefit back to the community,” Holston said.
Front Porch Investments actively provides grants and loans to housing nonprofits, advocates for supportive policies, and explores cost-effective housing designs to reduce building expenses.
The challenges of high land costs, construction expenses, and regulatory hurdles are ongoing issues in housing development, impacting what and where new housing can be built.
Freemark of the Urban Institute emphasizes the consequences of insufficient state and federal housing resources, noting that without investment in housing, poverty persists, leading to increased homelessness.
“You can’t wish poverty away by not investing in people’s housing needs,” Freemark said. “We have experienced an increasing share of folks who are homeless, unfortunately, and that is a direct result of high housing costs.”
Political Landscape and Housing Legislation
A 2026 poll by the National Association of Realtors reveals that 52% of voters consider affordable housing a critical election issue. Both political parties recently passed the 21st Century Road to Housing Act, introducing competitive grants to increase housing supply and expand rental assistance.
Senator Pete Ricketts highlights the legislation’s focus on reducing regulatory costs, which constitute a significant portion of new apartment expenses.
“Forty percent of the cost of new apartments is these regulations,” Ricketts said. “If we can cut some of this red tape, it will make it less expensive to build these apartments.”
Despite President Donald Trump’s initial refusal to sign the bill, pending the passage of the SAVE Act, the housing legislation is likely to proceed due to its veto-proof majority (source).
For individuals like Chuck Martens, who are evaluating their voting options for the 2026 midterms, the future impact of this legislation remains uncertain. Martens, concerned about Social Security funding, urges changes to the income cap on Social Security taxes to safeguard future benefits.
“If I am struggling now, what is it going to be like in 2032 when they have to cut my benefits?” Martens said. “I’ll be out on the street. They need to raise or eliminate the cap on the amount of income that is taxed by Social Security.”
