Nebraska balances modest growth with shifting demographics
Driving economic activity
Nebraska's economy is projected to expand modestly through 2025, with growth accelerating in 2026. This growth is supported by the services industry, including business services, healthcare, and leisure and hospitality, along with construction and food manufacturing. Major infrastructure investments, such as the $722 million statewide highway improvement program launched in 2025, are also contributing to economic activity, particularly in regions like northeastern Nebraska with the US-275 Expressway development.
Housing market right now
The Nebraska housing market is stabilizing in 2025-2026, with a median home sale price of $325,000 as of March 2026, a 2.67% decrease year-over-year. Inventory levels are increasing, offering buyers more selection, while rental costs have risen by 3.45% year-over-year to a median of $1,500 per month. Omaha's housing market anticipates modest price gains of 3% to 3.5% for existing homes in 2026, with new construction prices remaining relatively flat.
Migration patterns
Nebraska's population increased by approximately 12,500 residents from July 2024 to June 2025, primarily due to a positive natural change (more births than deaths) and a reduced net loss from domestic migration. However, international migration, a significant growth factor in previous years, saw a substantial decline in 2025. U-Haul's 2025 Growth Index indicates Nebraska slipped in national rankings as neighboring states like Missouri and South Dakota attracted movers with affordability and lower taxes.
Headwinds
Nebraska faces challenges from a weakening labor market, with employment remaining flat in the Kansas City metro area through August 2025. The state's revenue projections for fiscal year 2026-27 were decreased by $175 million in February 2026, creating a budget gap for lawmakers. Additionally, the closure of a major employer, such as the Tyson plant in Lexington, is estimated to create a significant economic hole for the state.
Key facts
- Nebraska's minimum wage increased to $15 per hour effective January 1, 2026. (Nebraska Department of Labor, December 2025)
- The state launched a $722 million statewide highway improvement program in August 2025, funding 92 projects across 560 miles of roadway. (Nebraska Department of Transportation, August 2025)
- Nebraska's population increased by 0.6%, or approximately 12,500 residents, from July 2024 through June 2025. (Census report, January 2026)
- The median home sale price in Nebraska was $325,000 in March 2026, a 2.67% decrease year-over-year. (Realtor.com, April 2026)
- Nebraska's labor force participation rate was 70.1% in February 2026, ranking second in the nation. (United States Employment Snapshot, April 2026)