Research Note: Housing Affordability in Nebraska

This is the sixth (and final) in a series of research notes written by our summer intern, Ethan, exploring different facets of housing policy, both in Nebraska and in some of our sister states.

Housing affordability consistently ranks among the top priorities and concerns for Nebraska consumers. Studies repeatedly show that land use regulation significantly affects housing prices. I have created an index of residential land-use regulation restrictiveness by collecting and aggregating regulations from the municipal codes of 29 large and medium-sized Nebraska cities and towns. The data captures requirements for setbacks, minimum lot sizes for single-family homes, duplexes, and townhomes in the largest allowing districts, maximum lot coverage, allowance of accessory dwelling units (attached or detached suites with complete living accommodations), minimum parking requirements, and the percentage of each town’s residential land that permits only single-family housing.

Here’s a quick overview of the results.

Norfolk’s land use regulations were rated as the least restrictive among large and medium-sized Nebraska towns, according to the data groups represented in the index. In addition to allowing accessory dwelling units, Norfolk’s city code showed no residential zones in which single-family housing is the only permitted type. Nebraska City finished a close second, also showing no residential zones that limit construction to single-family housing, allowing accessory dwelling units, and permitting higher maximum lot coverage and smaller minimum lot sizes and setbacks than almost every town for which data was collected.

Cities with broad allowances for non-single-family housing types include Lincoln, McCook, North Platte, Seward, York, and Alliance. York, Alliance, Hastings, and Kearney stand out for allowing relatively low minimum lot sizes per unit across single-family, duplex, and townhome residential districts.

Bellevue’s high proportion of single-family-only residential land, low maximum lot coverage, high setback requirements, and high minimum lot sizes resulted in its being ranked as the most restrictive land-use zoning code in the index. Omaha, Ralston, and Papillion stood out for comparatively restrictive maximum lot coverage and high minimum lot sizes. Only 6 of the 29 towns allow accessory dwelling units by right. Most require homeowners to obtain a conditional-use permit or gain discretionary approval to build accessory dwellings.

This data is being compared with the price-to-income ratio and housing growth figures to explore associations among housing prices, housing growth, and municipal housing policy restrictiveness in this sample of 29 Nebraska cities and towns.