A+
2%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
4%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Lincoln Nebraska National
Cost of living9889100
Goods & Services10396100
Groceries9796100
Health care10998100
Housing9676100
Transportation105100100
Utilities8186100

An Overview of Cost of Living in Lincoln, NE

Knowing the cost of living in Lincoln allows individuals to create a realistic budget. This helps them understand how their income will cover expenses and whether they need to make financial adjustments. The cost of living in any region can fluctuate due to various factors. To assess the cost of living consistently across different areas, a national average of 100 serves as the basis for the cost of living index. The cost of living in Lincoln stands at 98, marking it 2% lower than the national average.

The cost of living in Lincoln closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Lincoln can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

What Do Locals Say About the Cost of Living in Lincoln?

The real experts on a city are its residents. That's why we reached out to 62 locals to get their views on the cost of living in Lincoln. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 50% found it budget-friendly with decreasing prices, while 50% said it's simply not affordable as prices have continued to rise.

Is Lincoln Affordable?

Is Lincoln affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Lincoln, the median home price is 2.3% lower than the national average and monthly rent prices are 8.2% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Lincoln boasting a median household income of $60,063, 8.6% higher than the national average.

What Factors can Influence the Cost of Living in Lincoln?

Housing: When there's a high demand for housing in trendy places, it can cause property prices and rental rates to soar, leading to a significantly higher cost of living. Conversely, in less desirable locations, where demand is low, prices tend to decrease, resulting in a more budget-friendly cost of living. In Lincoln, the housing index is 4.1% lower than the national average.

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Groceries: Over the past 2-3 years, grocery expenses have experienced substantial upward trends. In certain markets, food prices have surged by over 20% during this period, while others have witnessed more modest increases. These fluctuations in food costs can wield significant influence over the overall cost of living in a given region. In Lincoln, the groceries index is 3.1% lower than the national average.

Where is the Data From?

The Lincoln cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Lincoln is 10% higher than the Nebraska average
  • The cost of living in Lincoln is 2% lower than the national average
  • Lincoln housing is 4% lower than the national average
  • Nebraska general sales tax is 8% higher than the national average
  • Nebraska state income tax is 9% higher than the national average

Most Affordable Places to Live in and Around Lincoln

See all the best places to live around Lincoln

Compare Lincoln, NE Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$83,572$6,964$1,950$2,507
      Renters$38,535$3,211$899$1,156
      To approximate the cost of living and the housing affordability in Lincoln, NE, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Lincoln have a median income of $83,572. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,950 per month to avoid calamity and poverty. The renters in the city have an income of about $38,535, which would make their monthly maximum allowable rental costs $899.

      Nebraska Sales Tax

      State General Sales Tax With Max Surtax
      Nebraska 5.5% 7.5%

      Nebraska Income Tax

      State Income Tax (Low) Income Tax (High)
      Nebraska 2.46% 6.84%

      Goods & Services

      Item Lincoln National avg. Difference
      Haircut $31.00$24.2627.8%
      Beauty Salon $45.12$45.561.0%
      Toothpaste $3.71$3.700.1%
      Shampoo $1.35$1.285.4%
      Movie $12.09$12.130.4%
      Bowling $17.47$18.003.0%

      Groceries

      Item Lincoln National avg. Difference
      Ground Beef $6.17$5.845.6%
      Fried Chicken $1.37$1.5712.7%
      Milk $4.68$4.670.2%
      Potatoes $4.50$4.938.7%
      Pizza $11.23$12.097.1%
      Beer $9.42$10.419.5%

      Health Care

      Item Lincoln National avg. Difference
      Optometrist $114.63$125.688.8%
      Doctor $168.72$135.7824.3%
      Dentist $118.87$113.294.9%
      Ibuprofen $10.68$10.650.3%
      Lipitor $483.84$468.603.3%

      Housing

      Item Lincoln National avg. Difference
      Home Price $180,400.00$184,700.002.3%
      Avg. Mortgage Payment $1,893.52$2,346.6919.3%
      Apartment Rent $871.00$949.008.2%

      Transportation

      Item Lincoln National avg. Difference
      Gasoline $3.39$3.462.0%
      Tire Balancing $73.74$59.9223.1%

      Utilities

      Item Lincoln National avg. Difference
      All Electricity $128.83$193.9933.6%
      Phone $201.86$192.255.0%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Walton, NE407990.8%
      Crete, NE7,0138811.9%
      Davey, NE137919.5%
      Eagle, NE919918.9%
      Greenwood, NE489918.7%
      Lincoln, NE286,388981.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Orlando, FL284,8171109.9%
      Plano, TX288,87013030.3%
      Newark, NJ281,91711414.0%
      Saskatoon, SK281,340n/a 
      Anchorage, AK292,09013131.4%
      Lincoln, NE286,388981.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.