Cost of Living in Omaha, NE
Omaha is about 9% cheaper than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Omaha at a Glance
On the median income of $71,640, state income tax is roughly $4,184/year.
Sources: Census ACS 2024, Tax Foundation.
Omaha is Warren Buffett's hometown, and like Buffett, it offers exceptional value without flashiness. The largest city in Nebraska has a cost of living about 8.5% below the national average, a diversified economy anchored by Berkshire Hathaway, Mutual of Omaha, and Union Pacific, and a food scene that has earned national recognition. The median home price of about $250,000 makes homeownership accessible. The Old Market district has genuine character.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Omaha
The corporate presence is disproportionate for a city of 490,000: five Fortune 500 companies call Omaha home. The job market in insurance, finance, and logistics is stable. The Old Market's cobblestone streets have restaurants, galleries, and independent shops. The Henry Doorly Zoo is consistently ranked among the best in the world. The food scene, particularly the steak tradition, is a point of civic pride. The College World Series brings national attention annually.
Neighborhoods
The Old Market is the walkable historic core. Dundee is the charming residential neighborhood near UNO and the zoo. Aksarben Village is a newer mixed-use development. Benson has become the hipster bar and music district. West Omaha and Elkhorn are suburban growth areas. For affordable options, South Omaha has character and lower prices.
Things to Consider
Nebraska's property taxes (1.61%) are above average and the state's biggest tax complaint. Winters are cold with significant wind. The landscape is flat. The city is smaller and more conservative than many transplants expect. Cultural diversity is improving but more limited than larger metros. The isolation from other major cities (Kansas City is 3 hours, Denver is 7 hours) can feel real.
Frequently Asked Questions About Omaha
For value-conscious professionals and families, excellent. Five Fortune 500 companies provide career stability rare for a city this size. Housing is affordable ($250,000 median). The zoo is world-class. The Old Market has genuine urban character. The honest trade-offs: cold winters, high property taxes, and a scale that limits cultural diversity and career options outside the major industries.
Buffett has lived in the same Omaha house since 1958, which he bought for $31,500 (now worth about $1.4 million, a bargain by billionaire standards). He values the Midwestern common sense, lack of pretension, and distance from Wall Street groupthink. His presence has attracted global attention to Omaha and inspired civic investment. The annual Berkshire Hathaway shareholders meeting turns the city into a financial pilgrimage destination.
Anchored by five Fortune 500 companies: Berkshire Hathaway, Mutual of Omaha, Union Pacific, Kiewit, and ConAgra Brands. Insurance, finance, railroad logistics, construction, and food processing are the major sectors. Offutt Air Force Base adds military employment. The job market is stable and diversified for a city of this size, though smaller than comparable metros in other regions.