Fulfilling the needs of any resident when it comes to housing and amenities, Omaha is a middle-America hidden gem.
With great communities and more arts, culture and entertainment than you might first expect, Omaha will impress you. The largest city in Nebraska, it has ample opportunity and a low cost of living for those thinking of making the move.
Aligning with most other cities in Nebraska, the cost of living in Omaha is 8.7 percent below the national average. However, within the area, it has some competition. Des Moines, Omaha’s closest major city in neighboring Iowa, is even lower at 14.4 percent.
Even though you can always find somewhere a little less expensive, the cost of living in Omaha is reasonable. Let’s break it down further into categories:
- Housing costs in Omaha
- Food costs in Omaha
- Utility costs in Omaha
- Transportation costs in Omaha
- Healthcare costs in Omaha
- Goods and services costs in Omaha
- Taxes in Omaha
- How much do you need to earn in Omaha?
- Free things to do in Omaha
Housing costs in Omaha
Omaha housing prices sit about in the middle of what you’d pay across the state. Overall, costs are 17.1 percent below the national average, which is slightly more than you’ll pay in Lincoln, but 5 percent less than you’ll pay in Hastings.
With this cost of living being relatively low, even with rising rent prices, you still won’t be paying a ton to live in Omaha. One-bedroom apartment prices are up 12 percent, but the average unit only costs $1,082 per month. Two-bedroom apartments are seeing a slightly higher increase at 14 percent, but the average monthly rent is only $1,460.
If you’re moving on from renting to becoming a homeowner — congratulations. Omaha also has an affordable housing market for you. The median sale price in Omaha for homes is $257,000, up 12.5 percent over last year.
Apartment hunting in Omaha
One of the biggest benefits of living in Omaha is the affordability across all the best neighborhoods in the city. Even though there are definitely some that will cost more than others, you can find communities with excellent reviews at any price point.
For those will a little extra in their budget, Aksarben-Elmwood Park tops the neighborhood list. Here, the average one-bedroom apartment will cost you $1,512 per month. What you get for that price though is a charming, tree-filled community that’s full of history and character. Elmwood Park has an excellent golf course as well.
If you’d like to stick closer to the average one-bedroom price when it comes to renting, check out Benson and Downtown Omaha. Slightly above, Benson’s one-beds average out at $1,157 a month. However, its combination of quiet residential streets with a happening nightlife district makes it a favorite spot. It’s sometimes referred to as “the heart of Omaha.”
Downtown Omaha has one-bed rents that are almost exactly the same as the city-wide average. Here, you’ll pay $1,065 per month, on average, in rent. All that, and you get to live downtown with its large assortment of activities, parks and professional opportunities. This area is a huge draw for singles, couples without kids and young professionals.
When you need a neighborhood in Omaha with the least expensive price tag, look into Dundee. An extremely walkable spot, just a short way from Downtown, Dundee is beautiful, clean and safe, with a lot of local businesses that have been around for decades. You’ll only pay $675 per month, on average, for a one-bedroom apartment; what a deal!
Food costs in Omaha
Although New Yorkers may say something different, Omahans maintain that the Reuben sandwich was invented right here. The Plush Horse restaurant features the sandwich on menus dating back to the mid-1940s. Additionally, the area has a reputation for its steakhouses and restaurants featuring farm-grown produce and homemade cheeses. The city is also full of coffee shops.
It’s always great to live somewhere with so many food options, and with costs that are 2.8 percent lower than the national average, it’s all pretty affordable, too.
When it comes to your grocery list, making your own steakhouse dinner at home won’t break the bank. On average in Omaha, steak is $14.86 a pound and potatoes are $3.74 a pound. If you want to start off your dinner with a loaf of fresh bread, you’ll pay $4.17 on average, and a bottle of wine to wash it all down will cost $7.53.
Utility costs in Omaha
A city of extremes when it comes to weather, Omaha is warm and humid in the summer and freezing and snowy in the winter. It’s also cloudy quite frequently. This combination of weather gives you well-defined seasons, but it also means your AC and your heater are probably going to work pretty hard at certain times of the year.
For that reason, even though utility costs in Omaha are still 6.1 percent below the national average, the city has the highest rates in Nebraska. Your average energy bill here is $153.93, which is about $34 more than what you’d pay in both Lincoln and Hastings.
Transportation costs in Omaha
Among all the pieces that make up the cost of living in Omaha, transportation is the highest. It’s only 0.8 percent below the national average. The good news? This is a 2.6 percent drop over the previous year.
Another positive about transportation in Omaha is that you have options. While you’ll most likely use a car to get around, the city has a high enough walk (62) and bike (53) score, that you might not always need it.
Omaha also has a decent bus system. The Metro runs through Omaha with service to outlying areas as well. There are 20 fixed routes, with a few express routes that only run on weekdays. A one-way fare is $1.25, a 10-pack of passes is $12.50 and a 30-day pass is $55.
If you do decide to drive your own car around town, metered parking is available throughout Downtown and Midtown. Rates will vary based on a time limit, but most meters charge $1.25 per hour. There are also affordable garages and surface street parking.
Healthcare costs in Omaha
Omaha has the lowest average healthcare costs in the state. Overall, this piece to your cost of living in Omaha is 6.8 percent below the national average. Lincoln and Hastings both have averages a few points above what others pay across the country.
While everyone’s healthcare expenses are different and based on individual well-being, pre-existing conditions and other factors, this number means that visits to local health professionals shouldn’t hit your budget too hard. The average visit to a doctor in Omaha, without insurance, is $144.33. For the dentist, it’s $84.67, and for the eye doctor, it’s $119.50. These prices can change dramatically based on your insurance coverage.
Goods and services costs in Omaha
Beyond all the necessities, like food and a home, goods and services round out your monthly budget and bring the fun. They’re anything you like doing, or want to do, that you could live without if money got tight.
In Omaha, goods and services costs are 6.7 percent below the national average, and 5.7 percent lower than in nearby Lincoln. If you budget well, this most likely means you’ll be able to keep all your extras in each month without impacting your bottom line.
However, goods and services can break out differently based on priorities. If it’s a night out you’re looking to plan, complete with pizza ($10.49) and a movie ($11.62), you may be able to budget for this more than once a month as long as your errands aren’t too costly. In Omaha, you could pay $19.83 for a haircut, $17.60 for a yoga class or $14.40 at the dry cleaners.
Taxes in Omaha
When it comes to sales tax in Omaha, the city adds to the statewide rate of 5.5 percent. Even with the extra bit, you’re only paying 7 percent in sales tax — still lower than in many other U.S. cities.
For those who like to shop, or are spending big to furnish their first Omaha apartment, this rate means that for every $1,000 you spend, $70 goes straight to taxes.
How much do I need to earn to live in Omaha?
Given that housing prices in Omaha are so reasonable, you most likely won’t have to stress about income. It’s also nice that you have solid neighborhood options at the lower end of the rent scale since housing is your largest cost of living expense.
The experts suggest you put 30 percent of your total income toward rent, and while you can figure out what’s ideal for you using our rent calculator, it’s also safe to make some estimates using averages.
With the average one-bedroom renting for $1,080 per month, you’d need to earn at least $43,200 a year to meet the 30 percent rule. Luckily, the median household income in Omaha is $62,213.
Free things to do in Omaha
It’s not likely that you’ll feel strapped for cash often living in Omaha. Its reasonable cost of living helps with that a lot. Should money ever get tight, you don’t have to just sit at home and wait for the bucks to roll back in though. Omaha offers plenty of activities that don’t cost a thing.
If you need a break from spending, check out these special spots:
- Bob Kerrey Pedestrian Bridge or The Bob — This 3,000 foot, cable-stay bridge actually connects Nebraska to Iowa. If you position yourself right, you can stand with a foot in each state.
- Lewis and Clark National History Trail — Winding through 16 states, you can walk along a portion of this trail right in Omaha.
- Hot Shops Art Center — Making art in front of your eyes, this unique (and free) spot lets you look in on artists working with glass, metals, ceramics and iron to create masterpieces.
- OPPD Arboretum — Learn how trees and shrubs help to conserve energy as you walk through greenery native to southeast Nebraska.
Parks are also front-and-center throughout Omaha — and free. You can wander through Kenefick Park and catch sight of two powerful locomotives, or walk down the riverfront, stopping to see the sculpture at Lewis and Clark Landing. Turner Park features live music in the summer, and Memorial Park has military monuments as well as the All-American Rose Society Garden.
Living in Omaha
Surprised Omaha has so much to offer at a reasonable cost of living? Don’t be. This great city, with its vibrant green spaces and lakes, bustling downtown and charming neighborhoods, could be your perfect place to live. It seems like the price could be right too, but what do the numbers tell you?
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 October 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