Omaha Homeless Camps

Government Added to Problem

Update 2: https://www.ketv.com/amp/article/omaha-mayor-reacts-to-fire-homeless-encampment-in-old-market/45526121

Update: Housing expense is driving people out of Nebraska (https://nebraskaexaminer.com/2023/10/12/survey-housing-surpasses-jobs-as-top-reason-nebraskans-moved-away/)

In case you have not heard, homeless encampments are becoming an increasing problem throughout Omaha. (https://www.wowt.com/2023/10/06/nebraska-dot-removes-large-homeless-camp-northwest-omaha/ and https://www.ketv.com/amp/article/omaha-working-on-homeless-encampments/45446235 and https://original.newsbreak.com/@the-nebraska-vibe-1756145/3183174357421-alarming-increase-omaha-metro-witnesses-surge-in-homelessness). Why is this taking place?

Mostly this is the result of rents going up but what is behind the increases? First, property evaluations have gone up, pushing property taxes up. Landlords see this but renters do not. The higher taxes are passed on to the renters in the form of higher rents. In addition, sewer separation charges amount to about $600 per year per unit (https://omahacso.com/about-program#funding). Of course, assistance is offered to help cover the sewer fee, but how many know about it?

However, the real cause of the increases is the result of the Omaha inspection of rental properties (https://omaharentalinfo.com/map-). All rental properties within the corporate limits of the city or within the city’s three-mile extraterritorial jurisdiction are subject to these inspections which cost $125 each. There are over 86,000 rental properties.

The $125 amount is small but the inspection results in landlords doing extra maintenance on rental units which will increase costs. In addition, why merely fix a sink when you can renovate the whole bathroom and charge an extra $100 in monthly rent? Labor and supply change stoppages contribute to this problem.

House flippers also add to the problem. There are nice guys out there who help homeowners get rid of a house (https://medium.com/authority-magazine/house-flipping-james-watson-of-omaha-homes-for-cash-on-the-5-things-you-need-to-know-to-create-a-68424bc7f97). However, many flippers will do some form of extensive renovation which upgrades the property into a different classification. The exception is when they buy a large property and turn it into several smaller properties, but this is usually done by a developer.

Also, another problem is Nebraska’s minimum wage law which is scheduled to incrementally increase to $15 an hour. The increase largely results in the cutting of hours and automation replacing labor. This makes it much harder to find good
paying jobs to pay for a home or even rent an apartment

.

Even the sex offenders registry becomes a problem. After being harassed and losing housing, such registrants find “freedom” from harassment as they are now homeless and not as easy to harass. The chances of getting them off the streets are much harder. Of course, drugs, alcohol, gambling, and other social problems play a part as well in being homeless.

The City of Omaha can address the homeless problem by lowering property taxes and reforming the rental registry to be less costly. The City could also call for reform in the minimum wage laws to boost employment while helping small businesses reduce costs.  However, none of these proposals appear on the horizon.