Zip Code 68516

Lincoln, NELancaster County

Real Estate Market Analysis

Q3 2025 Report
$382,968 (up 2.9% YoY)
Median Home Value
~40,000 (estimate for 68516)
Population
$95,000+ (well above Lincoln average)
Median Income
Above average; LPS is highly rated in NE
School District Rating

Market Statistics

Property Values

$382,968 (up 2.9% YoY)
Median Home Value
$1,600–$2,000 (estimate based on market segment)
Median Rent
$180–$210 (estimate based on recent sales)
Price per Sq Ft

Market Performance

Home Appreciation2.9% YoY (average home value); 20.4% MoM (March 2025 median sale price)
Market VelocityCompetitive; homes in 68516 sold for 20.4% more than the previous month (March 2025)
Foreclosure RateLow; 18 properties in pre-foreclosure, 108 involuntary liens on 99 properties

Area Information

Area SizeLarge suburban area in south Lincoln
CountyLancaster
Primary CityLincoln

Housing Profile

Housing Statistics

Total Housing Units~12,000 (estimate based on property records)
Owner OccupiedHigh; majority owner-occupied, with over 11,660 properties having >50% equity
Rental PropertiesModerate; mix of single-family rentals and multifamily units
Vacant UnitsLow; tight inventory, reflecting competitive market
New ConstructionActive; ongoing development of single-family homes and townhomes

Housing Types

Single-family homesTownhomesCondosApartments

Demographics

~40,000 (estimate for 68516)
Population
38 (estimate; family-oriented, established area)
Median Age
$95,000+ (well above Lincoln average)
Median Income
High; low unemployment typical of Lincoln metro
Employment Rate
High; large proportion with bachelor’s degree or higher
Education Levels
Predominantly families, professionals, and retirees
Family Composition

Education Quality

School District Performance

Above average; LPS is highly rated in NE
District Rating
School DistrictLincoln Public Schools (LPS)
Test ScoresConsistently above state average
Graduation Rates~90%+

Schools in Area

  • Southwest High School
  • Scott Middle School
  • Adams Elementary
  • St. Michael Catholic School

Economic Factors

Employment & Business

Job GrowthStable; Lincoln metro continues to see moderate job growth
Unemployment RateLow (Lincoln metro ~2.5–3%)
Business EnvironmentStrong; diverse economy with education, healthcare, government, and tech
Commercial ActivityActive retail corridors, professional offices, and service businesses

Major Employers

  • University of Nebraska–Lincoln
  • Bryan Health
  • Lincoln Public Schools
  • State of Nebraska
  • Assurity Life

Infrastructure & Quality of Life

Infrastructure

Transportation Access

  • Easy access to Hwy 2 and 77
  • Public bus service (StarTran)
  • Bike trails and walkable neighborhoods

Utilities & Services

  • City water/sewer
  • Electricity (LES)
  • Natural gas (Black Hills Energy)
  • Trash/recycling

Quality of Life

Safety & Environment

Low; 68516 is among the safest areas in Lincoln

Excellent; clean air, green spaces, low pollution

Healthcare Access

  • Bryan South Medical Center
  • CHI Health Clinic
  • Numerous specialty practices

Development Trends

Planned Developments

  • New subdivisions south of Pine Lake Rd
  • Expansion of retail at SouthPointe Pavilions

Infrastructure Projects

  • Road widening on 27th St and Yankee Hill Rd
  • Trail expansions

Investment Outlook

Growth Outlook

Strong; continued demand for new homes and amenities

Investment Opportunities

  • Single-family rentals
  • New construction sales
  • Value-add renovations

Marketing Intelligence

Target Demographics

  • Move-up buyers
  • Young families
  • Retirees
  • Relocating professionals

Competitive Advantages

  • Top-rated schools
  • Low crime
  • Modern housing stock
  • Strong resale values

Pricing Strategies

Position homes at or slightly above median for move-in-ready; price competitively for older stock

Common Objections & Response Strategies

Objection: Higher price point than other Lincoln zip codes

Response Strategy:

Emphasize value: newer homes, top schools, low crime, strong appreciation

Objection: Limited affordable starter homes

Response Strategy:

Highlight townhomes/condos and potential for equity growth

Objection: Rising property taxes

Response Strategy:

Showcase community amenities, school quality, and long-term value retention

Professional Recommendations

1

Leverage school and safety data in marketing

2

Network with relocation services and local employers

3

Advise sellers on pricing for quick sales in competitive segments

4

Educate buyers on long-term value and appreciation

5

Monitor new construction pipeline for inventory shifts

Competitive Analysis

Comparable Markets

  • 68512 (southwest Lincoln)
  • 68526 (southeast Lincoln)
  • 68510 (central Lincoln)

Market Positioning

Premium suburban family market

Competitive Advantages

  • Higher average home values
  • Newer housing stock
  • Superior schools

Price Comparison

68516 median home value ($382,968) is significantly higher than Lincoln city median ($265,000)

Investment Metrics

4.5–5.5% (estimate for single-family rentals)
Cap Rates
~5% gross yield
Rental Yields
18–20 (higher than city average, reflecting premium market)
Price-to-Rent
Moderate; best for long-term appreciation and stable tenants
Cash Flow
2–4% annually, barring economic shocks
Appreciation

Buyer Journey Insights

First-Time Buyers

Challenging due to higher prices; focus on condos/townhomes and down payment assistance

Move-Up Buyers

Strong inventory of larger homes; emphasize lifestyle upgrades

Downsizers

Appealing new ranches and low-maintenance options

Investors

Stable returns, high equity, low vacancy; focus on quality tenants

Relocators

Desirable for families and professionals; highlight schools and amenities

This zip code analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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