Lincoln Cost of Living

What living in Lincoln costs

Lincoln carries a cost index of 0.89x the national baseline, placing it above 6 of the 99 metros tracked and below 91. Rent runs about $950 monthly; the median home is near $260,000.

The price-to-rent ratio here is roughly 23, which is high. Above about 20, renting and investing the down payment usually beats buying over a normal holding period — the purchase price is steep relative to what the same property earns as a rental.

Working and living here

Lincoln is a metro of roughly 0.3M and growing steadily, running on government/state capital, higher education, insurance. Larger employers include University of Nebraska-Lincoln, State of Nebraska, Nelnet.

Nebraska taxes income at the state level, and Lincoln adds no separate city tax. Cost-of-living indexes exclude income tax entirely, so compare after-tax figures rather than index ratios when weighing this metro against one in a no-income-tax state.

Getting around: Lincoln is effectively car-dependent. Budget for a car — around $9,000 a year all-in once insurance, fuel, maintenance and parking are counted, a cost the index assumes but does not itemise.

Climate: January highs near 34°F/lows near 14°F; July highs near 88°F/lows near 66°F, with significant swings and occasional severe storms.

As Nebraska's capital and home to its flagship university, the local economy is unusually insulated from national recessions due to heavy government and education employment.