Communities across the country all strive for the same goal: housing options that are affordable to all income levels.
The 2025 Lincoln Vital Signs report found that 45% of renting households in Lincoln pay 30% or more of their income on housing. Homeowners are feeling the squeeze too: 22% of mortgaged homeowners were cost-burdened, a 4% increase since 2019.
The definition of affordable housing differs for every income level, and this lack of a firm explanation can cause some confusion.
Housing is classified as unaffordable when a family or individual spends more than 30% of their gross income on housing costs. This limit was set in federal standards as a way to promote a holistic budget where the household has enough money left over for other necessities such as food, clothing, medical care, transportation and ideally, for well-being or recreational activities.
Industry partners often refer to affordable housing through two main lenses:
- Lowercase "a" affordable housing occurs naturally due to a property's age, quality, size or location.
Capital "A" affordable housing refers to a project that has received a subsidy to cover a gap in construction or operating costs, in the form of public grants, tax credits or private philanthropic support. This subsidy helps bring the cost below what would be possible through the private market, with the savings passed on to the home buyer or renter through a lower purchase price or monthly rent.
New developments such as Fifty-One Commons and Foxtail Meadows, along with preservation programs like Hawley Historic Restoration or South of Downtown Rental Rehab are all examples of capitol A affordable Housing here in Lincoln.
Without a form of subsidy, these projects would not be feasible to meet the budgetary needs of certain income levels due to stagnant wages or current market values for items such as land, labor, insurance, or materials.
It takes a village, and housing development is no exception.
No single funding mechanism, land acquisition strategy, policy change or development organization can do this work alone. Over the past year, the Prosper Lincoln 3.0 Housing workgroup members and other industry partners advocated several key policy changes that will help bring the affordability vision to life.
Locally, the City of Lincoln adopted an Accessory Dwelling Unit (ADU) text amendment, making it easier for homeowners to add another housing option to their property. The Prosper Lincoln Housing Workgroup has rallied behind the City's Affordable Housing Coordinated Action Plan to relieve pressure first identified in 2020 by helping advance solutions and develop a housing marketing in Lincoln that fits the diverse needs of our residents.
At the state level, the Nebraska Legislature passed the First-Time Homebuyer Savings Account Act, giving residents a tax-advantaged way to save for a down payment starting in 2027, and enacted a new Community Improvement District (CID) tool creating a new financing mechanism for infrastructure-related costs.
Congress passed the 21st Century ROAD to Housing Act, the most significant federal housing legislation in decades, aimed at increasing housing supply, cutting construction costs and modernizing HUD programs.
Each of these wins required collaboration across the public and private sectors. By creating more affordable financing tools, lowering up-front development costs and expanding housing options, we will continue to ease pressure for buyers and renters.
As the Driver of the Prosper Lincoln 3.0 Housing Workgroup, I’m proud to work alongside community partners of various perspectives who are dedicated to building knowledge and collaboration.
By continuing to learn, advocate and invest in solutions that reflect Lincoln’s changing needs, we are building a community where our goal that all residents can live in quality housing they can afford becomes a reality.
There's still much work ahead, and we invite you to be part of it. Stay tuned to future Prosper Lincoln Housing updates for the latest on our policy efforts, upcoming events and new ways to get involved.
After all, it takes a village, and we're glad to have you in ours.
