Editorial: A Plan to Help Nebraska's First-Time Homebuyers

The goal of purchasing your first home has always been a cornerstone of the American dream. And in Nebraska, homeownership lies at the heart of the Good Life.

When my wife Ashley and I purchased our first home in Fremont in 2013, it gave us the foundation to start our family and invest in our community. But today, this dream is slipping out of reach for too many Nebraskans.

From our largest cities to our small, rural towns, housing affordability is a top concern for community leaders. It was a key issue during my time as mayor of Fremont. Now as the state’s chief financial officer, I believe we must address this challenge to keep Nebraska competitive.

By the Numbers

Home prices and interest rates have soared since 2020. Upfront costs, like down payments and closing fees, now pose a significant barrier for those trying to buy a house. Consider the hurdles:

• Soaring Values: Nebraska’s median home prices have jumped from roughly $155,000 in the mid-2010s to around $270,000 to $290,000 today, according to real estate sites such as Redfin and Zillow. 
• Lagging Savings: Nebraska trails most surrounding states — including Iowa, Kansas, and South Dakota — in the time required to save for a down payment, according to a recent comparison by Consumer Affairs.
• Delayed Ownership: Data from the National Association of Realtors show that across the U.S., first-time buyers have declined to 21%of home sales, while the average age of first-time homebuyers has risen to 40 years old — a full decade older than in 2010.

When a large portion of Nebraska residents cannot buy a home, it compounds problems in the areas of workforce supply, “brain drain,” and economic competitiveness.

The Plan Under LB 938

As State Treasurer — and a father of four — I want to help forge a path for Nebraska’s future. That’s why I asked Senator Bob Hallstrom of Syracuse to introduce Legislative Bill 938, which already has bipartisan support in the Unicameral. The bill is currently before the Legislature’s Revenue Committee for consideration.

Modeled after successful programs in Kansas and Iowa, LB 938 would create Nebraska First-Time Homebuyer Savings Accounts. These accounts would give Nebraskans a responsible, low-risk way to save for a first home using their own money, not government giveaways.

Key provisions include:

• Dedicated Homebuyer Savings: Individuals would be permitted to save up to $5,000 annually, and married couples up to $10,000, in a first-time homebuyer savings account at a local bank or credit union.
• Tax Advantages: Contributions would be deductible from Nebraska income taxes, while interest earned would be tax-free when used for qualified expenses like down payments, closing costs, or construction of a primary residence. The bill would take effect in 2027, coinciding with Nebraska’s top personal income tax rate falling to 3.99% under the tax relief law signed by Gov. Jim Pillen.
• Modest but Meaningful Savings: For those who maximize the annual savings limit over a five-year period, the tax savings would be approximately $1,100 for individuals or $2,200 for couples — a reward for patience and planning.

LB 938 is fiscally responsible. The bill contains provisions to deter abuse, while also utilizing existing financial institutions rather than creating new government bureaucracy.

Admittedly, no single policy can instantly lower home prices or solve supply shortages. But the plan in LB 938 would complement broader housing efforts at the federal, state, and local levels. Best of all, it would allow more Nebraskans to enter homeownership on firm financial footing.

I encourage Nebraskans to contact their state senators and ask them to support LB 938. Let’s help more of our fellow residents achieve the dream of homeownership — and do it in a financially conservative way.