What Is the Cost of Living in Nebraska?

The cost of living represents the total financial outlay required to maintain a certain standard of living in a particular place. This encompasses all regular expenses an individual or household incurs for goods and services. Nebraska is frequently recognized for its affordability, often cited as having a lower cost of living compared to the national average.

Understanding Major Household Expenses

Household expenses form the foundation of the cost of living, covering everything from shelter to daily necessities. Housing, transportation, food, healthcare, and utilities collectively account for the majority of a household’s budget.

Housing

Housing costs in Nebraska generally fall below the national average. The average rent across the state is approximately $1,094 per month, with variations based on apartment size. A studio apartment typically rents for around $986 monthly, while a one-bedroom unit averages $1,094, and a two-bedroom averages $1,363 per month. For those considering homeownership, the median home sale price in Nebraska was about $306,600 in July 2025.

Property Taxes

Property taxes in Nebraska are a notable component of homeownership costs, with the state having one of the higher effective rates nationally. The average effective property tax rate is around 1.61%, ranking among the top ten highest in the United States. Homeowners can expect to pay an average of $2,787 annually in property taxes, though this can vary significantly by county.

Food

Food expenses in Nebraska are generally comparable to, or slightly lower than, the national average. Grocery costs are approximately 1% less than the rest of the country. For instance, residents in Omaha might spend around $336 per month on groceries. While specific data for dining out varies, overall non-necessary expenses, which can include restaurant meals, are noted to be about 10% higher than the national average.

Transportation

Transportation costs in Nebraska are typically lower than the national average. The transportation index for the state stands at 76.1% of the national average. Gas prices contribute to this, with regular unleaded gasoline averaging around $2.39 per gallon. Car insurance costs vary, but full coverage averages approximately $1,320 annually, while minimum coverage averages about $471 per year.

Healthcare

Healthcare expenses in Nebraska tend to be higher than the national average. The healthcare cost index is approximately 131.3% of the national average. Average health insurance premiums for an individual can range from $550 to $743 per month, depending on the plan type and age. Bronze plans, for example, average about $472 per month.

Utility

Utility costs in Nebraska are generally below national averages. Overall utilities are about 13% lower than the national average. A typical household might expect to pay around $379 per month for combined utilities. This includes an average of $108.09 for electricity, $68 for natural gas, $23 for water, and $20 for internet services.

Miscellaneous Expenses

Beyond the primary household categories, miscellaneous expenses cover a range of other goods and services. These can include personal care, entertainment, and clothing. Nebraska’s miscellaneous expenses are estimated to be about 10% higher than the national average.

Comparing Nebraska’s Cost of Living

Nebraska distinguishes itself with a cost of living that is notably below the national average, providing residents with greater purchasing power. The overall cost of living in the state is approximately 12% to 13% less than the national benchmark. This means that a similar income in Nebraska can stretch further, allowing individuals and families to acquire more goods and services or save more money.

While many categories are more affordable, some expenses in Nebraska align closely with or exceed national averages. Groceries are typically just 1% lower than the national average. Healthcare costs, however, are an exception to the overall lower trend, with expenses for medical services and insurance premiums being higher than the national average. Similarly, miscellaneous expenses, covering items like personal care and entertainment, can be about 10% higher than the national average.

Differences Across Nebraska’s Regions

The cost of living within Nebraska is not uniform, with notable variations between its major metropolitan areas and its smaller towns or rural regions. Urban centers, particularly Omaha and Lincoln, generally exhibit higher living costs compared to the rest of the state. This difference is most pronounced in housing, which is often the largest household expense.

In Omaha, the median home sale price was approximately $285,000 in July 2025, and average rents for a one-bedroom apartment are around $1,005 per month. Lincoln also presents higher costs, with a median home sale price of about $295,000 in July 2025 and average rents for a one-bedroom apartment around $1,308 per month.

Conversely, rural areas and smaller towns across Nebraska typically offer more affordable housing options.