Despite Elevated New Supply, Omaha Apartment Occupancy Remains Strong

New apartment completions in Omaha-Council Bluffs were elevated recently, but occupancy remained solid. Each of the past four quarters saw the completion of 500 to 700 new units in the market, pushing deliveries to 2,554 units in the year-ending 2nd quarter 2024, according to data from RealPage Market Analytics. That was well above the five-year annual average delivery load of around 1,800 units. Recent additions took Omaha’s existing inventory to nearly 90,000 units, the 55th largest among the nation’s core 150 apartment markets. On the demand side, Omaha absorbed 772 units in the April to June time frame, the market’s best quarterly demand performance in three years. That took annual absorption to 1,375 units. Although the surge in completions has brought down occupancy from recent highs in 2022, the market has remained strong. Occupancy in Omaha dropped 1.2 points year-over-year, with the 2nd quarter 2024 rate landing at a still-tight reading of 95.5%. In fact, average apartment occupancy in Omaha has remained above 95% for six years. With occupancy above the effectively full mark (95%), operators have retained pricing power. In 2nd quarter 2024, same-store effective asking rents for new leases were up 3.2% year-over-year, which was well above the national average of 0.2%. Completions in Omaha are expected to ease in the next year, with 1,897 units scheduled to complete. While demand is forecasted to continue to trail new supply, occupancy should remain above the effectively full mark.