Omaha's low cost of living was once its economic superpower. That's no longer true

[Uffda]

Article in the Sunday OWH

Omaha's low cost of living was once its economic superpower. That's no longer true

https://www.omaha.com/money/plus/omaha- ... ece8f.html

Omaha has long paid relatively lower wages to workers — lower than the national average and some of its neighboring competitors — but could fall back on the low cost of living to sell the pay. Now, figures analyzed by The World-Herald show Omaha offers relatively lower pay — with a growing cost of living.

[Cermak]

It’s disturbing that our home prices are going up fast while our incomes remain below the national avg. While cities like Des Moines on the contrary have good income growth with slower growing home prices. This scenario erodes away at Omahans disposable income and our quality of life. Not good.

[Doctor Fate]

I live in Salt Lake City right now and did some research on wages for various jobs related to what I do (I'm a business systems analyst for Zions Bancorporation, one of the only Fortune 1000 companies out here). The average job in SLC paid on average only $3,000 more than in Omaha. But a 3,500 sq ft home costs about $100,000 more out here.

[Busguy2010]

I cite the increase in the city's size, the number of newer and bigger subruban homes, and the increase of super-high-rent apartments in the core as validation for this article. Also there appears to be more young people who don't know that living "hard" is an option, i.e eating simply, driving an affordable vehicle, living in an affordable house or apartment, not buying your kids unnecessary shiot. Although America as a whole is living well beyond their individual means.

There's way too much status material being distributed, and I really do believe that is distracting people from what really matters. Every person and their family is able to live comfortably in a sub $100,000 house, driving two sub $20,000 cars, feeding on less than $200 every paycheck. I think our perceptions of "comfortable" and "cost of living" have changed more than anything of reality.

For perspective, the idea of "lack of disposable income" to me is way out there. What the heck is lack of disposable income? "Ugh, I don't have enough money to buy stuff I don't need"... What a world we live in.

[Uffda]

Where are you finding livable sub 100k houses? I bought my 1100 sq ft house in 2003 for 122k, which is what the houses in the neighborhood was averaging. Houses in the neighborhood are now selling for over 160k.

[ita]

I cite the increase in the city's size, the number of newer and bigger subruban homes, and the increase of super-high-rent apartments in the core as validation for this article. Also there appears to be more young people who don't know that living "hard" is an option, i.e eating simply, driving an affordable vehicle, living in an affordable house or apartment, not buying your kids unnecessary shiot. Although America as a whole is living well beyond their individual means.

There's way too much status material being distributed, and I really do believe that is distracting people from what really matters. Every person and their family is able to live comfortably in a sub $100,000 house, driving two sub $20,000 cars, feeding on less than $200 every paycheck. I think our perceptions of "comfortable" and "cost of living" have changed more than anything of reality.

For perspective, the idea of "lack of disposable income" to me is way out there. What the heck is lack of disposable income? "Ugh, I don't have enough money to buy stuff I don't need"... What a world we live in.

If everyone had that mentality, sub $100k houses prices would be in such high demand that they would no longer be sub $100k, and we have seen that here haven't we? In any case, I agree with your points. I need to read the article still, but having a lack of disposable income is an odd metric. However, for some people that is essential. They want to have extra money to be able to experience new things, travel, etc. Maybe this article is to scare away those kinds of people from moving to Omaha? Also, in my niche occupation, base salaries have gone up over the last few year I have been here, and I know are much higher than they were several years back.

[Uffda]

If everyone had that mentality, sub $100k houses prices would be in such high demand that they would no longer be sub $100k, and we have seen that here haven't we?

I do know that houses in the range of $125k-200k have been in high demand and if in good shape when they go up for sale, they are sold quickly.

[ita]

If everyone had that mentality, sub $100k houses prices would be in such high demand that they would no longer be sub $100k, and we have seen that here haven't we?

I do know that houses in the range of $125k-200k have been in high demand and if in good shape when they go up for sale, they are sold quickly.

Yes, that is right. Granted sharp, for Omaha at least, increases in home prices because of new development, or people pouring in, have been primarily on a neighborhood by neighborhood basis. I have seen it in my neighborhood, our old neighborhood downtown. Also, since I have lived here, Benson and Askarben neighborhoods have seen big increases in home prices due to demand, where many sub $100k homes are well over $100k over the course of 8-10 years.

[Busguy2010]

Where are you finding livable sub 100k houses? I bought my 1100 sq ft house in 2003 for 122k, which is what the houses in the neighborhood was averaging. Houses in the neighborhood are now selling for over 160k.

All over the place. There have been sub $100,000 houses all around me throughout the years near Benson, though, more people are finding them, driving the prices up recently. Just a couple years ago, someone I work with bought a house in Millard for less than $90,000. It was dated and had a few issues but definitely livable... He has fixed them on his own on the cheap (he waited to do the roof till he found enough clearanced out bundles of shingles). Took a while, but he got it done. Then there's the plethora of sub $100k or even sub $80k houses hidden all throughout areas of north and south Omaha and midtown east of Saddle Creek. No, they're not pretty, but they are in good enough shape to live in. They tend to be in the 800 to 1000 square foot range.

[Uffda]

Where are you finding livable sub 100k houses? I bought my 1100 sq ft house in 2003 for 122k, which is what the houses in the neighborhood was averaging. Houses in the neighborhood are now selling for over 160k.

No, they're not pretty, but they are in good enough shape to live in. They tend to be in the 800 to 1000 square foot range.

So people have to buy and then spend $1000s to fix it up to make it worth living in.

[ScrattyB]

I've lived in Omaha all my life. I think the past 5 to 10 years, prices have really shot up. Restaurants are not so cheap like they used to be, a glass of Bud Light is now $3+ at many bars, and rent is getting out of control.
It doesn't effect me personally though, I just stay home.

But what does affect me is wondering how people can afford all of this. How can Matthew Hansen from omaha.com afford to go out and have $11+ cocktails often? I can't imagine the newspaper pays him that much. How can my younger friends afford to live downtown in a $1200 a month studio? How are people buying all these new $30k+ cars and $50k+ trucks? How can some of my friends live WAY out west and pay $13k+ in annual property taxes?

Where are these people getting all this money?

[Busguy2010]

So people have to buy and then spend $1000s to fix it up to make it worth living in.

That's funny, but no. It just depends on your "standard of living". If impressing people is important to you, then yeah, a 90K house is going to end up costing you 120K. Or you can just live in a 90K house and fix it up as needed. I've seen it done... The Jones's don't live everywhere.

[iamjacobm]

Total household debt has hit 2008 levels again finally. The stack isn't as mortgage based like last time though, auto debts have risen for 9 consecutive years and is at an all time high, student loan debt is obviously skyrocketed over the past 15 years.

Other than student loans(which are their own animal) auto loan payments have been increasingly delinquent for a few years now, mortgage and credit card debt delinquencies have been trending down or flat. Plenty of research to show there is an auto bubble coming.

[TitosBuritoBarn]

Man, living in pricier cities the past decade or so has apparently put me out of touch with Omaha cost of living...

[ita]

I've lived in Omaha all my life. I think the past 5 to 10 years, prices have really shot up. Restaurants are not so cheap like they used to be, a glass of Bud Light is now $3+ at many bars, and rent is getting out of control.
It doesn't effect me personally though, I just stay home.

But what does affect me is wondering how people can afford all of this. How can Matthew Hansen from omaha.com afford to go out and have $11+ cocktails often? I can't imagine the newspaper pays him that much. How can my younger friends afford to live downtown in a $1200 a month studio? How are people buying all these new $30k+ cars and $50k+ trucks? How can some of my friends live WAY out west and pay $13k+ in annual property taxes?

Where are these people getting all this money?

I can't answer all of your questions, but despite the increase of cost of living in Omaha, it is still below national average, particularly when considering home and rents costs. If you are thinking are are all these young people affording relatively expensive things, there are several considerations. Even if Omaha's wages are growing as fast as we would like it, if you are YP earning $50-60k a year, that is decent money for Omaha, if your spending habits are not outrageous, you can afford a nice apartment and have some nice stuff. If you are married YP's earning about $50-60k each and you have no children, then you can afford nice things. Those kind of wages, though low for the coasts, goes a long way in a city like Omaha and is not uncommon for YP's or workers with some experience. It's not world changing money, but it's more than enough to live comfortably.

[Garrett]

I've lived in Omaha all my life. I think the past 5 to 10 years, prices have really shot up. Restaurants are not so cheap like they used to be, a glass of Bud Light is now $3+ at many bars, and rent is getting out of control.
It doesn't effect me personally though, I just stay home.

But what does affect me is wondering how people can afford all of this. How can Matthew Hansen from omaha.com afford to go out and have $11+ cocktails often? I can't imagine the newspaper pays him that much. How can my younger friends afford to live downtown in a $1200 a month studio? How are people buying all these new $30k+ cars and $50k+ trucks? How can some of my friends live WAY out west and pay $13k+ in annual property taxes?

Where are these people getting all this money?

I can't answer all of your questions, but despite the increase of cost of living in Omaha, it is still below national average, particularly when considering home and rents costs. If you are thinking are are all these young people affording relatively expensive things, there are several considerations. Even if Omaha's wages are growing as fast as we would like it, if you are YP earning $50-60k a year, that is decent money for Omaha, if your spending habits are not outrageous, you can afford a nice apartment and have some nice stuff. If you are married YP's earning about $50-60k each and you have no children, then you can afford nice things. Those kind of wages, though low for the coasts, goes a long way in a city like Omaha and is not uncommon for YP's or workers with some experience. It's not world changing money, but it's more than enough to live comfortably.

God, I live in NYC and 50-60k would be great here even for my standard of living.

[Louie]

I've lived in Omaha all my life. I think the past 5 to 10 years, prices have really shot up. Restaurants are not so cheap like they used to be, a glass of Bud Light is now $3+ at many bars, and rent is getting out of control.
It doesn't effect me personally though, I just stay home.

But what does affect me is wondering how people can afford all of this. How can Matthew Hansen from omaha.com afford to go out and have $11+ cocktails often? I can't imagine the newspaper pays him that much. How can my younger friends afford to live downtown in a $1200 a month studio? How are people buying all these new $30k+ cars and $50k+ trucks? How can some of my friends live WAY out west and pay $13k+ in annual property taxes?

Where are these people getting all this money?

I can't answer all of your questions, but despite the increase of cost of living in Omaha, it is still below national average, particularly when considering home and rents costs. If you are thinking are are all these young people affording relatively expensive things, there are several considerations. Even if Omaha's wages are growing as fast as we would like it, if you are YP earning $50-60k a year, that is decent money for Omaha, if your spending habits are not outrageous, you can afford a nice apartment and have some nice stuff. If you are married YP's earning about $50-60k each and you have no children, then you can afford nice things. Those kind of wages, though low for the coasts, goes a long way in a city like Omaha and is not uncommon for YP's or workers with some experience. It's not world changing money, but it's more than enough to live comfortably.

God, I live in NYC and 50-60k would be great here even for my standard of living.

Whats 50-60k look like as far as housing goes there?

[Garrett]

I've lived in Omaha all my life. I think the past 5 to 10 years, prices have really shot up. Restaurants are not so cheap like they used to be, a glass of Bud Light is now $3+ at many bars, and rent is getting out of control.
It doesn't effect me personally though, I just stay home.

But what does affect me is wondering how people can afford all of this. How can Matthew Hansen from omaha.com afford to go out and have $11+ cocktails often? I can't imagine the newspaper pays him that much. How can my younger friends afford to live downtown in a $1200 a month studio? How are people buying all these new $30k+ cars and $50k+ trucks? How can some of my friends live WAY out west and pay $13k+ in annual property taxes?

Where are these people getting all this money?

I can't answer all of your questions, but despite the increase of cost of living in Omaha, it is still below national average, particularly when considering home and rents costs. If you are thinking are are all these young people affording relatively expensive things, there are several considerations. Even if Omaha's wages are growing as fast as we would like it, if you are YP earning $50-60k a year, that is decent money for Omaha, if your spending habits are not outrageous, you can afford a nice apartment and have some nice stuff. If you are married YP's earning about $50-60k each and you have no children, then you can afford nice things. Those kind of wages, though low for the coasts, goes a long way in a city like Omaha and is not uncommon for YP's or workers with some experience. It's not world changing money, but it's more than enough to live comfortably.

God, I live in NYC and 50-60k would be great here even for my standard of living.

Whats 50-60k look like as far as housing goes there?

I share an updated 3 bedroom in a decently nice neighborhood in Brooklyn about 20-30 minutes from Manhattan via different subway lines and I pay $1,100

[bigredmed1]

I've lived in Omaha all my life. I think the past 5 to 10 years, prices have really shot up. Restaurants are not so cheap like they used to be, a glass of Bud Light is now $3+ at many bars, and rent is getting out of control.
It doesn't effect me personally though, I just stay home.

But what does affect me is wondering how people can afford all of this. How can Matthew Hansen from omaha.com afford to go out and have $11+ cocktails often? I can't imagine the newspaper pays him that much. How can my younger friends afford to live downtown in a $1200 a month studio? How are people buying all these new $30k+ cars and $50k+ trucks? How can some of my friends live WAY out west and pay $13k+ in annual property taxes?

Where are these people getting all this money?

There are debt piles that are not disclosed. There are people who have more money from inheritances. There are a lot of people who lived downtown and finally just couldn't take it anymore so they reprioritized their budgets and moved out west. The cars are often leased to keep up with the Joneses. Lots of what appears is not what it appears to be.

That said, it really is still true that Omaha is a lot cheaper than many other cities and that restaurant critics get a budget or often comp'd meals.

[Louie]

I've lived in Omaha all my life. I think the past 5 to 10 years, prices have really shot up. Restaurants are not so cheap like they used to be, a glass of Bud Light is now $3+ at many bars, and rent is getting out of control.
It doesn't effect me personally though, I just stay home.

But what does affect me is wondering how people can afford all of this. How can Matthew Hansen from omaha.com afford to go out and have $11+ cocktails often? I can't imagine the newspaper pays him that much. How can my younger friends afford to live downtown in a $1200 a month studio? How are people buying all these new $30k+ cars and $50k+ trucks? How can some of my friends live WAY out west and pay $13k+ in annual property taxes?

Where are these people getting all this money?

I can't answer all of your questions, but despite the increase of cost of living in Omaha, it is still below national average, particularly when considering home and rents costs. If you are thinking are are all these young people affording relatively expensive things, there are several considerations. Even if Omaha's wages are growing as fast as we would like it, if you are YP earning $50-60k a year, that is decent money for Omaha, if your spending habits are not outrageous, you can afford a nice apartment and have some nice stuff. If you are married YP's earning about $50-60k each and you have no children, then you can afford nice things. Those kind of wages, though low for the coasts, goes a long way in a city like Omaha and is not uncommon for YP's or workers with some experience. It's not world changing money, but it's more than enough to live comfortably.

God, I live in NYC and 50-60k would be great here even for my standard of living.

Whats 50-60k look like as far as housing goes there?

I share an updated 3 bedroom in a decently nice neighborhood in Brooklyn about 20-30 minutes from Manhattan via different subway lines and I pay $1,100

So based on my math, $3300 for a 3 bedroom in Brooklyn? That's not as outrageous as I assumed. Still pretty high, though.