Omaha vs Phoenix: cost of living compared
Phoenix is 20% more expensive than Omaha overall. State income tax tops out around 2.5% in AZ 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
Moving from Omaha to Phoenix generally means a higher cost of living. Omaha is noticeably more affordable across most categories, with its overall expenses being significantly lower than the national average. Phoenix, on the other hand, is slightly above the national average. This difference is largely driven by housing costs, which present the most substantial gap between the two metros, making up a considerable portion of the overall disparity.
Housing
Housing costs are considerably lower in Omaha, whether you are looking to buy a home or rent an apartment. The median home price in Omaha is substantially less than in Phoenix, and rental prices for a one-bedroom unit also show a significant difference. Phoenix's housing market is more expensive, reflecting its larger metropolitan status and growth. Both areas offer a mix of housing types, but the financial commitment for shelter is much greater in Phoenix.
Taxes and everyday costs
Daily expenses vary, with Omaha generally offering more savings. Food, healthcare, and miscellaneous goods and services are all more affordable in Omaha. While transportation costs are lower in Omaha, Phoenix residents face higher utility bills, especially for cooling during its hot climate. A notable difference is state income tax, which is considerably lower in Arizona, potentially offsetting some other cost differences for higher earners.
Lifestyle trade-offs
Life in Omaha typically involves four distinct seasons, including cold winters, while Phoenix offers a desert climate with very hot summers and mild winters. Commute times are generally shorter in Omaha. Phoenix is a much larger, more sprawling metropolitan area, often requiring more driving. Omaha has a more Midwestern pace and character, while Phoenix offers a vibrant, rapidly growing urban environment with extensive outdoor recreation opportunities in its surrounding desert landscape.
Bottom line
For a household budget, moving from Omaha to Phoenix will likely mean a substantial increase in overall expenses, primarily due to housing. While Phoenix offers a lower state income tax and a different climate and lifestyle, the higher costs for housing, utilities, and many everyday goods mean that a larger income will be necessary to maintain a similar standard of living. Omaha provides a more budget-friendly option across most spending categories.
| Measure | Omaha, NE | Phoenix, AZ |
|---|---|---|
| Overall cost of living (US avg = 100) | 85 | 102 |
| Housing index | 67 | 105 |
| Transportation index | 80 | 100 |
| Food index | 88 | 96 |
| Healthcare index | 90 | 98 |
| Utilities index | 92 | 112 |
| Misc index | 82 | 92 |
| Median home price | $238,000 | $388,000 |
| Median 1-bedroom rent | $1,000/mo | $1,450/mo |
| Average commute | 22 min | 28 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Phoenix home with the True Cost Calculator.