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Corn, cows and affordable cost of living. While that sums up the Midwestern state of Nebraska in a nutshell, this state has far more up its sleeve. For one thing, it boasts an incredible variety of natural landscapes ranging from sand dunes to sweeping prairies. Its vibrant cities are alive with sports, dining, art, culture and diverse industries like business. Some cities are up-and-coming hubs for young professionals to pursue exciting new careers. And yes, the Cornhusker State is famous for its agricultural output.
The cost of living in Nebraska is also affordable. Between the big cities and smaller towns, you’re bound to find a place that fits your budget. Many cities around Nebraska also offer a great blend of urban amenities, as well as outdoor access. From housing to taxes, here’s what you can expect in terms of the cost of living in Nebraska.
Nebraska housing prices
Overall, Nebraska’s housing costs are below the national average. Similar to most places, you’ll be paying more to live in bigger cities. But, while the average rent in cities like Omaha is on the higher end for the state, it trumps average rents in more expensive states like California. Even if you’re priced out of Nebraska’s bigger cities, you can make ends meet by getting roommates. You can also look for more affordable housing in the greater metro area or a nearby town.
Here’s what average rent and house prices are like in two of Nebraska’s biggest and most popular cities.
Lincoln
Located in the southeastern part of the state, Lincoln is Nebraska’s capital city. It’s also the second-most-populous city in the state with a population of around 292,657. From the historic downtown to numerous city parks, the friendly atmosphere here feels more “small town” than “big city.”
Residents get to enjoy the walkable downtown area, visit museums and galleries and support the growing live music scene. Lincoln is also the home of several universities, including the University of Nebraska-Lincoln. Just outside the city limits, locals can also hike and boat in nearby lakes and recreation areas.
Housing costs in Lincoln are 23.1 percent below the national average. But, the cost of rent here is on the rise. You’ll find one-bedroom apartments available for $1,115 a month, which is up 4 percent from last year. Prices for two-bedroom apartments are up 8 percent from the previous year to $1,375.
With a median sale price of $270,000 — that’s up 10.7 percent from last year — Lincoln’s housing market is also on the rise.
Omaha
Along with housing costs that are 17.1 percent below the national average, Omaha is Nebraska’s center for art, culture, dining and sports. In addition to being Nebraska’s most populous city, it’s also the center of the Omaha-Council Bluffs metro area. It’s considered a great city for musicians and artists to live and practice their craft.
Numerous Fortune 500 and Fortune 1000 companies are here, helping fuel a robust local economy. Its top industries include insurance, banking, transportation and telecommunications. From a good jobs market to the abundance of family-friendly activities like the Henry Doorly Zoo & Aquarium, Omaha appeals to both young adults and families.
Living in Omaha, renters will find a wide range of neighborhoods to choose from. To rent an apartment, you’re looking at an average monthly rent of $1,072 for a one-bedroom apartment. Two-bedroom units are going for around $1,510. Both these rates are up from last year. The cost of one-bedroom units has gone up 13 percent and two-bedroom apartments have gone up 18 percent.
If you want to buy a home in Omaha, the median sale price is $265,000. This price is up 9.1 percent from the previous year. This is one of the more affordable housing markets around the state. It’s also affordable compared to the national median sale price for a house, which is $428,379.
Nebraska food prices
It’s not called the Cornhusker State for nothing. Nebraska is well-known for its agriculture industry, especially for crops like corn. Cows, soybeans and hogs are also among the state’s top agricultural commodities. Living in such a bountiful state with near-instant access to so much fresh food could be a contributing factor to Nebraska’s lower-than-average food costs.
The average Nebraskan spends between $233 and $266 a month on food. That comes out to $2,801 and $3,200 annually, which is on par with food spending in states like California and New York. Overall, total grocery costs in Nebraska are 1.4 percent below the national average. In some cities, that amount is even lower:
- Lincoln is 7.1 percent below the national average
- Omaha is 3.3 percent below the national average
Just because Lincoln has the least expensive food costs compared to the national average doesn’t mean prices will always be lower than in other Nebraska cities. For example, the cost of a dozen eggs is more expensive in Lincoln at $1.52 compared to $1.39 in Omaha. However, buying a loaf of bread in Omaha costs $3.94 but is only $3.79 in Lincoln.
Nebraska utility prices
Living in Nebraska, the cost of basic utilities like water and electricity is below the national average. How much below depends on the city:
- Lincoln is 15.1 percent below the national average
- Omaha is 4.9 percent below the national average
Lincoln has the least expensive utilities. As an example, total energy costs for the month in Lincoln come out to $120.74. In Omaha, that monthly energy bill will be much higher at $152.54.
Another essential utility is water. The average water bill in Nebraska is $23. For most households, having the internet is now an essential modern utility, as well, costing an average of $59.99 a month. Paying for a minimum connection of 60 megabits per second is higher in Omaha, though, where it costs $77.46. In Lincoln, you’ll pay around $66.82.
Nebraska gets its electricity from a variety of sources. The majority comes from coal, followed by wind power and nuclear power. Along with wind power, Nebraska also gets renewable energy from hydropower. Vast underground aquifers like the High Plains Aquifer provide Nebraska with its water supply.
Nebraska transportation prices
Depending on where you live in Nebraska, you’ll be paying either above or close to the national average for transportation costs. Unlike the cars of Carhenge, a famous roadside attraction, you need to get from one place to another.
With the exception of a few counties, the majority of Nebraska counties have access to public transportation. Some counties, cities or municipalities may also operate their own mass transit. Nebraska is largely agricultural, with 92 percent of the state’s land dedicated to agriculture and farms. With cities and towns far between, many will view having a car as a necessity in Nebraska.
However, there are mass transit options for those without. Furthermore, there are plenty of benefits to using public transportation even if you do have a car. It can help you save money on gas or other vehicle expenses. If you live in a big city, it can reduce your commuting time and ease traffic congestion. Finally, it’s more sustainable and eco-friendly.
Here’s how transportation costs in these cities compare to the national average:
- Lincoln is 2 percent below the national average
- Omaha is 5.7 percent above the national average
Overall, Omaha is the most expensive city for transportation. This makes sense considering it’s the state’s biggest city. Let’s take a closer look at public transportation options in Omaha and Lincoln.
Omaha Metro in Omaha
Consisting of buses, paratransit and rapid transit services, Omaha Metro provides mass transit to the Omaha-Council Bluffs metro area. It operates 27 different routes around a territory of roughly 100 square miles. The fixed-route transit buses make up the majority of the routes. The ORBT Rapid Transit only operates on Dodge Street, providing more frequent service and stops along this main thoroughfare. Paratransit services are available on an on-demand basis.
Fares on fixed-route buses start at $1.25 for a single ride. Transfers cost an additional $0.25. Instead of a weekly pass, you can purchase a 10-day ride pass for $12.50 or $15 with transfers included. An unlimited 30-day pass is $55. Riders can pay in cash or with the system’s Umo card or app, and reduced rates are available for eligible riders.
The only tolled route in the Omaha metro area is the Bellevue GAR Memorial Bridge south of the city. This bridge crosses the Missouri River connecting Nebraska to Iowa. For passenger cars, it costs $1 to cross.
If taking the bus or using a car doesn’t work, you’ll be happy to hear that some parts of Omaha are pedestrian-friendly. The city has a walk score of 62. Its bike score is slightly lower at 53. Although it would be a challenge to fully navigate the city by bike or on foot, certain neighborhoods and districts are easily walkable or bike-able.
StarTran in Lincoln
The StarTran system offers bus routes around the city of Lincoln, with 14 different routes to choose from. It also provides paratransit services and designated routes for the University of Nebraska-Lincoln. There’s also a downtown trolley for tourists and workers.
Usually, one-way fares cost $1.25 and a monthly pass is $17. But at the moment, all StarTran buses are free to ride for everyone.
If you use your car to get around Lincoln, you won’t have to worry about toll roads or bridges. While Lincoln isn’t the most walkable city with a middling score of 48, it’s more bike-friendly. Its bike score is 64, indicating it’s fairly easy to get around the city by bike.
Nebraska healthcare prices
Healthcare is one of Nebraska’s few cost of living categories that are consistently above the national average. However, it’s important to point out that it’s difficult to calculate average healthcare costs in general. This is because these costs will be different for everyone depending on personal factors. If you have a pre-existing condition, illness or specific medication needs, you may pay far more for healthcare than your neighbor. So, these costs are definitely not set in stone and will vary depending on your personal healthcare needs.
For a rough overview, though, here’s the average cost for a doctor’s visit in these two cities:
- Omaha: $142.67
- Lincoln: $167
While both are expensive, Lincoln claims the top spot for the most expensive doctor’s visits. Going to the dentist is also more expensive in Lincoln, costing $100.40 compared to $97.67 in Omaha. Similarly, Lincoln’s total healthcare costs are the highest above the national average:
- Omaha is 2.1 percent above the national average
- Lincoln is 7.6 percent above the national average
The good news is that even though prices are higher than the national average, the quality of care should match the higher rates. Nebraska ranks 28th in the nation for its healthcare. It has especially good marks for access to healthcare and overall public health. If a state has a healthy population, it makes healthcare professionals’ jobs easier. The Nebraska Medical Center in Omaha is also ranked alongside the likes of the Mayo Clinic as one of the best hospitals in the nation. This provides Nebraska residents with access to a top-tier medical facility.
Nebraska goods and services prices
Along with housing, food, utilities and other essentials, you also need to factor miscellaneous goods and services into your monthly budget. These are routine items or services you need on a regular basis, like toothpaste or getting a haircut. Some are less utility-based and are more about lifestyle and enjoyment, like ordering pizza or going to see a movie.
Overall, you’ll be paying below the national average for goods and services in these two Nebraska cities:
- Omaha is 8.2 percent below the national average
- Lincoln is 2.8 percent below the national average
For total goods and services, Omaha is generally the least expensive city of the two. A haircut in Omaha costs $22.80 compared to $24.20 in Lincoln. A trip to the dry cleaners rings up a bill of $14.08 in Omaha. In Lincoln, that dry cleaning run will set you back $16.56. If you want to go out to the movies in Omaha, you’ll pay $11.62 for tickets. Those same tickets cost $13.10 in Lincoln.
Taxes in Nebraska
Whether in the form of sales tax or income tax, state taxes are another important cost of living factor to consider since they can vary widely between states.
Nebraska’s statewide sales tax of 5.5 percent. This means that if you spend $1,000 on Reuben sandwiches, you’ll pay $55 extra in sales tax.
Furthermore, cities and counties around Nebraska can also add their own local sales tax onto the statewide rate:
- Omaha has a combined tax of 7 percent
- Lincoln has a combined tax of 7.25 percent
In Omaha, you’ll be paying a total of $70 in tax for every $1,000 spent. In Lincoln, you’ll be paying slightly more at $72.50. Throughout the state, local sales tax ranges from 1 percent to 2 percent, with 2 percent being the maximum local sales tax you’ll pay. The majority of cities and towns implement a 1.5 percent local sales tax.
For income tax, Nebraska has a graduated individual rate ranging from 2.46 percent to 6.84 percent.
How much do I need to earn to live in Nebraska?
Rent is usually the biggest monthly expense. To make sure you’re not living outside your means and can afford other necessities like food and utilities, it’s recommended that you only spend 30 percent of your gross monthly income on rent. This ensures you have sufficient funds for everything you need as well as fun expenses like going out.
With Nebraska’s average rent being $1,009, that requires a monthly income of $3,363 or an annual income of $40,356. The median household income in Nebraska is $63,015. An individual paying for only their expenses and no dependents need to make at least $34,519 to live comfortably in Nebraska. As salaries here range from $25,359 to $99,457, some people working in lower-paying industries may struggle to afford housing if they’re living on their own. But, if you have roommates or live with a partner, housing costs become manageable.
You can use our rent calculator to estimate what you can afford to pay in rent based on your monthly income, location, type of desired housing and expenses.
Living in Nebraska
Now that you’ve learned more about how Nebraska’s cost of living changes by city and area, you can determine the best place for you to live. Throughout the state, you’ll enjoy access to the great outdoors, cultural scenes and growing job markets.
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com