Cost of Living in Lincoln, NE

With a cost of living index of 84, Lincoln, NE is a very affordable place to live. Living here is 16% cheaper than the national average and 12% above the Nebraska state average of 72. As a major city with a population of 291,932, Lincoln offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Lincoln's cost of living. The median monthly rent is $1,045 (21% below the US median of $1,319), and the median home value sits at $248,200 (19% below the national median of $304,900). At current prices, the median home costs roughly 3.5x the median household income — a moderately affordable ratio by today's standards.

The median household income in Lincoln is $69,991, which is 7% lower than the national median of $75,149. Residents spend roughly 18% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Lincoln. The area sees an average annual temperature of 52.3°F, with summers averaging 76°F and winters around 28°F. Annual rainfall totals 29.3 inches spread over roughly 95 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Everyday prices in the Lincoln, NE (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.