A+
4%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
6%
Housing NAT. AVG.
Search Homes for Sale
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 Omaha Nebraska National
Cost of living9689100
Goods & Services9796100
Groceries9896100
Health care8898100
Housing9476100
Transportation99100100
Utilities9686100

An Overview of Cost of Living in Omaha, NE

The cost of living in Omaha affects the quality of life one can afford in this new location. It allows people to assess whether they can maintain their preferred lifestyle, including housing, leisure activities and dining options. Your total monthly expenditures can varry depending on the area, as well as many other factors. The cost of living in Omaha is 96, which is 4% lower than the national average. Knowledge of the cost of living can help individuals make informed decisions about retirement savings, investments, and financial goals.

Everyday expenditures like food, housing, goods and services, transportation and health care in Omaha are priced in a manner consistent with other areas. This means that residents of Omaha can anticipate their daily expenses remaining reasonably similar to those in an average city, thereby supporting a manageable cost of living.

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

When it comes to knowing a city, its residents are the experts. We conducted a survey with 82 locals to understand their opinions on the cost of living in Omaha. The results indicated that 67% found it reasonably priced with decreasing prices of goods and services, while 33% viewed it as quite expensive, with increasing prices.

Is Omaha Affordable?

Is Omaha 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 Omaha, the median home price is 9.1% lower than the national average and monthly rent prices are 0.1% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Omaha boasting a median household income of $62,213, 12.5% higher than the national average.

What Factors can Influence the Cost of Living in Omaha?

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Omaha, the transportation index is 1.1% lower than the national average.

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Omaha, the groceries index is 2% lower than the national average.

Where is the Data From?

The Omaha 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. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

New Real Estate Listings in Omaha Area
Search Homes for Sale in Omaha, NE

Cost Of Living Quick Facts

  • The cost of living in Omaha is 7% higher than the Nebraska average
  • The cost of living in Omaha is 4% lower than the national average
  • Omaha housing is 6% 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 Omaha

See all the best places to live around Omaha

Compare Omaha, NE Cost of Living

      vs
      How would you rate the cost of living in Omaha?
      Write a review to give others more information about this area.
      Is the cost of living increasing or decreasing in Omaha?
      Write a review to give others more information about this area.
      See all Omaha poll results

      Salary Calculator

      This is how much you would need to earn in
      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$83,972$6,998$1,959$2,519
      Renters$40,315$3,360$941$1,210
      A good way to judge both the affordability of the housing and the cost of living in Omaha is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Omaha has a median income of about $83,972 for people who own homes. Based on that number, a maximum of $1,959 should be spent on expenses related to housing. Renters have a slightly different median income, which is $40,315. Based on this average, renters should spend no more than $941 on all rental costs if they want to maintain a non-impoverished standard of living.

      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 Omaha National avg. Difference
      Haircut $23.69$24.262.4%
      Beauty Salon $32.50$45.5628.7%
      Toothpaste $3.71$3.700.3%
      Shampoo $1.23$1.283.7%
      Movie $12.12$12.130.1%
      Bowling $18.36$18.002.0%

      Groceries

      Item Omaha National avg. Difference
      Ground Beef $6.11$5.844.6%
      Fried Chicken $1.40$1.5711.2%
      Milk $4.67$4.670.1%
      Potatoes $4.50$4.938.9%
      Pizza $11.19$12.097.4%
      Beer $9.76$10.416.3%

      Health Care

      Item Omaha National avg. Difference
      Optometrist $123.10$125.682.1%
      Doctor $135.27$135.780.4%
      Dentist $90.11$113.2920.5%
      Ibuprofen $10.62$10.650.3%
      Lipitor $357.80$468.6023.6%

      Housing

      Item Omaha National avg. Difference
      Home Price $167,800.00$184,700.009.1%
      Avg. Mortgage Payment $1,869.86$2,346.6920.3%
      Apartment Rent $948.00$949.000.1%

      Transportation

      Item Omaha National avg. Difference
      Gasoline $3.22$3.467.1%
      Tire Balancing $68.12$59.9213.7%

      Utilities

      Item Omaha National avg. Difference
      All Electricity $174.82$193.999.9%
      Phone $200.78$192.254.4%
      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.
      La Platte, NE136973.4%
      Weston, IA138973.4%
      Richfield, NE14973.4%
      Boys Town, NE841973.4%
      Carter Lake, IA3,7998910.8%
      Omaha, NE479,529964.3%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Colorado Springs, CO471,68611919.3%
      Raleigh, NC469,69811110.5%
      Kansas City, MO491,158946.2%
      Long Beach, CA462,08115757.0%
      Atlanta, GA497,64211615.8%
      Omaha, NE479,529964.3%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.