State Treasurer Seeks to Boost Nebraska’s First-Time Homebuyers

In the face of soaring housing costs, Nebraska State Treasurer Joey Spellerberg has unveiled new legislation designed to help more Nebraskans achieve the dream of homeownership.

Introduced on the Treasurer’s behalf by Sen. Bob Hallstrom of Syracuse, Legislative Bill 938 would create Nebraska First-Time Homebuyer Savings Accounts, allowing Nebraskans to save while benefiting from state income tax deductions and tax-free earned interest for qualified home-buying expenses. Early cosponsors include Sens. Teresa Ibach of Sumner, Tony Sorrentino of Elkhorn, and Carolyn Bosn of Lincoln.

“Inflation and higher interest rates have made buying a first home harder than it should be, especially for young families and young professionals,” Treasurer Spellerberg said. “As the state’s chief financial officer, I believe LB 938 will help more Nebraskans own a home and do it in a financially responsible way.”

Spellerberg, who served as Fremont mayor for five years, said housing is consistently mentioned by community leaders statewide as a top concern and impediment to growth. When highlighting the need for the bill, he pointed to the following trends:

• Over the past decade, Nebraska’s median home values have increased from roughly $155,000 in the mid-2010s to between $268,000 and $309,000 today, according to real estate sites such as Redfin and Zillow. 
• From 2019 to 2024 alone, the cost of a home in Nebraska rose 21.25%, according to the Nebraska Investment Finance Authority.
• An October 2025 comparison by Consumer Affairs shows Nebraska trails most other Midwestern states – including Iowa, Kansas, South Dakota, Illinois, Ohio, and Indiana – for the time needed to save for a home downpayment.
• Data from the National Association of Realtors show that only 21% of U.S. homes sold between July 2024 and June 2025 went to first-time homebuyers, a record low according to the organization. Nationwide, the average age of first-time homebuyers has risen to 40 years old, a decade older than in 2010.

“LB 938 is intended to complement other efforts – at the local, state, and federal levels – to make homes more affordable and grow the housing supply,” Spellerberg said. “As Nebraska’s treasurer, I believe the state can and should help Nebraskans save for their first home by letting them keep more of the money they earn.

“When people buy a home, they put down roots, start families, focus on stability, and invest in their communities. This plan is about retaining Nebraska’s workforce and the next generation.”

Key Provisions of the Bill

The main provisions of Nebraska’s First-Time Homebuyer Savings Account Act include:

• Tax advantages: Eligible individuals could contribute – on a tax-advantaged basis – up to $5,000 per year, while eligible couples could contribute up to $10,000 per year. Contributions would be deductible from Nebraska adjusted gross income, and earnings in a first-time homebuyer savings account would be exempt from state income tax when used for qualified homebuying expenses. Total contributions would be capped at $50,000 for married couples who file a joint return, and $25,000 for individuals.
• Qualified uses: Account funds could be used for down payments, closing costs, and other expenses associated with purchasing a primary residence in Nebraska – or financing the construction of a primary residence in Nebraska – beginning a year after the account is established and funded.
• Eligibility: A qualified first-time homebuyer is an individual who has never owned or purchased a single-family, owner-occupied primary residence, either individually or jointly – or if divorced, has not been listed on a property title for at least three consecutive years.

“Saving for a home is one of the most important steps on the path to financial independence,” Sen. Hallstrom said. “LB 938 isn’t a silver bullet to solving housing affordability, but it does offer a meaningful incentive to help first-time homebuyers, while also providing a platform for state lawmakers to discuss a key challenge facing many Nebraskans.”

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About the State Treasurer’s Office: The Nebraska State Treasurer is responsible for the safekeeping and supervision of the state’s public funds and is mandated to receive, keep, and disburse all state money. The office administers the Nebraska Educational Savings Trust (NEST 529) and Enable Savings Plan; manages and returns unclaimed property; collects and disburses child support payments; and promotes transparency in state spending. Learn more at treasurer.nebraska.gov.

Contact: Jamie Karl, 531-427-1752