Department of Numbers

This section of Department of Numbers is no longer being updated and may be removed in the future. The data here is out of date and should no longer be used.

Nebraska Home Affordability

The data below quantifies Nebraska home affordability by using home prices and home price indices to calculate price-to-income and price-to-rent ratios.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Nebraska home affordability to other states.

Nebraska Home Price-to-Income Ratios

The home price-to-income ratio for Nebraska comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Nebraska annual median household income data. The FHFA home price series yields a dollar ratio (top chart) while the index results in an index ratio (bottom chart). Based on the latest FHFA state home prices in June 2010, the price-to-income ratio for Nebraska was 2.28.

Home Price-to-Income Dollar Ratio: FHFA

Chart of Nebraska home price-to-income ratio using FHFA median price

Home Price-to-Income Index Ratio: FHFA

Chart of Nebraska home price-to-income ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Nebraska Home Price-to-Income Ratio History

(Dollar Ratio)
(Index Ratio)
December 2013 106.2
September 2013 104.6
June 2013 103.2
March 2013 102.8
December 2012 101.5
September 2012 99.3
June 2012 99.0
March 2012 97.9
December 2011 90.9
September 2011 90.7

Nebraska Home Price-to-Rent Ratios

The price-to-rent ratio for Nebraska is determined for both the FHFA median price and the purchase only index by calculating a ratio with the median contract rent. The price-to-adjusted rent value takes into account CPS reported household size to attempt to correct for quality differences in renter and owner occupied homes. More on that process here. Again, the median price ratio is a dollar ratio and the HPI ratio is an index ratio defined to be 100 in Q1 2000. The adjusted price-to-rent ratio for Nebraska was 15.74 in June 2010.

Home Price-to-Rent Dollar Ratio: FHFA, FHFA Adjusted Rent

Chart of Nebraska home price-to-rent ratio using FHFA median price

Home Price-to-Rent Index Ratio: FHFA

Chart of Nebraska home price-to-rent ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Nebraska Home Price-to-Rent Ratio History

(Dollar Ratio)
FHFA Adjusted
(Dollar Ratio)
(Index Ratio)
December 2013 95.2
September 2013 93.8
June 2013 92.6
March 2013 92.2
December 2012 91.1
September 2012 89.1
June 2012 88.8
March 2012 87.8
December 2011 90.7

Nebraska Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for Nebraska and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from median household income and average monthly mortgage rates. The amounts are not adjusted for inflation.

Inferred Affordable Mortgage

Chart of Nebraska maximum affordable home loan amount

Nebraska Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $263,685
January 2014 $259,664
December 2013 $258,749
November 2013 $264,941
October 2013 $267,161
September 2013 $257,839
August 2013 $258,749
July 2013 $261,509
June 2013 $271,031
May 2013 $289,156
April 2013 $292,410
March 2013 $288,083
February 2013 $289,515

1. Specifically, Home prices are from the FHFA seasonally adjusted, purchase only quarterly series. Rent data is from the Census ACS and income is from the Census CPS. Rent and income data for the previous year is carried into the following year for calculations prior to release of new data.