Chicago vs Omaha: cost of living compared
Omaha is 28% cheaper than Chicago overall. State income tax tops out around 4.95% in IL vs 5.84% in NE.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Comparing Chicago and Omaha reveals a significant difference in overall cost of living. Omaha is noticeably more affordable across the board, with its overall index falling well below the national average. This substantial gap is primarily driven by housing costs, which are considerably lower in Omaha, making it a much more budget-friendly option for residents seeking to stretch their income further.
Housing
Housing presents the most dramatic cost difference. Both median home prices and typical one-bedroom rents are substantially lower in Omaha. Chicago's housing market, while below the national average for its index, still commands higher prices for both buying and renting. Omaha offers more accessible homeownership and rental options, often featuring a mix of single-family homes and some multi-unit dwellings, while Chicago's dense urban core includes many high-rise apartments and historic structures.
Taxes and everyday costs
Daily expenses also show Omaha as the more economical choice. Transportation costs are considerably lower in Omaha, and residents typically experience shorter commute times. Food, healthcare, and utility expenses are all more affordable there. While Nebraska's top marginal state income tax rate is slightly higher than Illinois', the overall lower cost for most goods and services in Omaha means daily spending will generally be less impactful on a household budget.
Lifestyle trade-offs
Beyond costs, these metros offer distinct lifestyles. Chicago is a major global city with extensive public transit, a dense urban environment, and a continental climate featuring cold winters and warm summers. Omaha, a smaller metropolitan area, relies more on personal vehicles, has a more relaxed pace, and experiences a similar climate with cold winters but often hotter summers and more frequent severe weather events like tornadoes. Chicago's density contrasts with Omaha's more spread-out feel.
Bottom line
Moving between Chicago and Omaha represents a significant shift in financial outlay. Omaha consistently offers a more affordable lifestyle, primarily due to its much lower housing and transportation costs. While Chicago's state income tax rate is marginally lower, the substantial savings on everyday necessities and housing in Omaha mean that a household's budget will generally go much further there, allowing for greater financial flexibility compared to the higher expenses found in Chicago.
| Measure | Chicago, IL | Omaha, NE |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 85 |
| Housing index | 97 | 67 |
| Transportation index | 121 | 80 |
| Food index | 105 | 88 |
| Healthcare index | 108 | 90 |
| Utilities index | 102 | 92 |
| Misc index | 108 | 82 |
| Median home price | $318,000 | $238,000 |
| Median 1-bedroom rent | $1,650/mo | $1,000/mo |
| Average commute | 34 min | 22 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Omaha home with the True Cost Calculator.