Omaha’s cost of living has historically been a bargain nationally. Per the Omaha World-Herald, it’s no longer as low as other Midwestern cities. The reason is simple: housing costs. A typical 2400 sq ft home averaged $227,000 in 2011. That same house is now averaged at $295,000 in 2018.
Omaha’s cost of living has historically been a bargain nationally. That situation seems to be changing.
Over the years, Omaha’s employers have paid relatively low wages to workers-lower than the national average. The same is true regarding wages paid by neighboring, regional competitors.
However, an extensive World-Herald analysis shows that is now problematic because of our growing cost of living.
Omaha can tout good schools, good entertainment offerings, low crime and a good place to raise a family. It also has a good startup culture and is the headquarters for 4 Fortune 500 companies.
However, our current No. 7 ranking in U.S. News & World Report, as “the best affordable place to live for housing” fell from No. 2 last year. The cost of both renting & buying has increased appreciably.
The supply & demand factor appears to be at work here. There’s good demand. However, the supply of available homes hasn’t kept pace. Omaha continues to be a bargain relative to big cities on the coast. We also remain below the National average. However, we’re slipping with our regional Midwestern competitors.
Kansas City, Oklahoma City & Des Moines, for example, have seen appreciably lower increases in the cost of living when compared to Omaha. That’s a problem when you’re recruiting both workers and entrepreneurs to the Midwest.
