Denver vs Omaha: cost of living compared
Omaha is 34% cheaper than Denver overall. State income tax tops out around 4.4% in CO 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 Denver and Omaha reveals a significant difference in overall cost of living. Denver is noticeably more expensive across most categories, driven primarily by its much higher housing costs. Omaha, in contrast, offers a considerably more affordable lifestyle, with nearly every expense category falling well below the national average. This disparity means a substantial budget adjustment for anyone considering a move between these two cities.
Housing
Housing presents the most dramatic cost difference. Both buying a home and renting an apartment in Denver are considerably more expensive than in Omaha. Denver's median home prices are significantly higher, as are typical rents for a one-bedroom unit. While specific ownership costs like property taxes and insurance vary, the initial investment for housing is a much larger hurdle in Denver, where housing stock often includes a mix of older and newer construction, while Omaha offers a more accessible range of housing options.
Taxes and everyday costs
Daily expenses also show a clear distinction. Food, transportation, and healthcare are all noticeably cheaper in Omaha. Utilities are somewhat similar in both metros, but still slightly lower in Omaha. While Denver has a lower state income tax rate, the savings are often offset by the higher costs for nearly all other goods and services, making everyday spending considerably more economical in Omaha.
Lifestyle trade-offs
Beyond costs, lifestyle differences are notable. Denver offers a mountain climate with abundant outdoor recreation and a generally faster pace, while Omaha has a continental climate with hot summers and cold winters, known for its friendly atmosphere and Midwestern charm. Commute times are somewhat shorter in Omaha. Denver's urban density is higher, with more public transit options, whereas Omaha typically relies more on personal vehicles for getting around.
Bottom line
Moving from Omaha to Denver would require a substantial increase in household income to maintain a similar standard of living, primarily due to Denver's much higher housing expenses. Conversely, a move from Denver to Omaha could free up significant financial resources, allowing for greater savings or discretionary spending. The decision ultimately hinges on prioritizing either Denver's mountain lifestyle and amenities or Omaha's considerably more affordable cost of living.
| Measure | Denver, CO | Omaha, NE |
|---|---|---|
| Overall cost of living (US avg = 100) | 128 | 85 |
| Housing index | 146 | 67 |
| Transportation index | 104 | 80 |
| Food index | 105 | 88 |
| Healthcare index | 108 | 90 |
| Utilities index | 98 | 92 |
| Misc index | 108 | 82 |
| Median home price | $548,000 | $238,000 |
| Median 1-bedroom rent | $1,950/mo | $1,000/mo |
| Average commute | 28 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.