Dakota City, NE
Population 2,980 · Nebraska
About Dakota City, NE
Dakota City is a small town located in Nebraska with a population of 2,980 residents according to the latest US Census Bureau American Community Survey data. The median household income is $80,433 per year, which is 7% above the national median of $75,149. The median age of 28.6 years is notably younger the US median age of 38.9 years, indicating a younger, often more dynamic population base.
Housing Market Overview
The housing market in Dakota City features a median home value of $170,200, which is 31% below the national median of $244,900. This positions Dakota City in a moderately priced market relative to the rest of the country. Median monthly rent is $1,046, 10% below the national average of $1,163/month. Of the 794 total housing units, 83% are owner-occupied (642 units) and 17% are renter-occupied (131 units). The high homeownership rate suggests a stable, established residential community.
Economy & Employment
The local economy in Dakota City shows an unemployment rate of 6.2%, which is significantly above the national rate of 3.7%, suggesting economic challenges in the area. The poverty rate stands at 8.7%, below the national average of 12.4%, reflecting generally favorable economic conditions. Workers in Dakota City have an average one-way commute time of 13.8 minutes, one of the shorter commutes in the region.
Education & Demographics
12.8% of Dakota City residents aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The lower educational attainment rate may reflect the area's industry mix, with more employment in trades, manufacturing, or agricultural sectors. The community's demographic composition includes 37.7% White, 6.4% Hispanic or Latino, 0.0% Black or African American, and 5.1% Asian residents, with 16.6% of the population being foreign-born.
Cost of Living in Dakota City, NE
Compared to national averages, Dakota City has a median household income of $80,433 (7% above the national median of $75,149). Home values average $170,200, which is 31% below the national median. Monthly rent at $1,046 is 10% below the US average of $1,163. Within Nebraska, Dakota City's income is 22% above the state average of $65,895, and home values are 35% above the state median of $125,824.
Why Live in Dakota City, NE?
Dakota City offers a strong local economy with a median household income of $80,433, well above the national average, and affordable housing with a median home value of $170,200, below the US average of $244,900, and rent that’s lower than the national average at $1,046/month. Additionally, the city features a low poverty rate of 8.7%, better than the national average, and short commute times averaging just 13.8 minutes.
Dakota City has a population of 2,980 with a median age of 28.6 years. Compare Dakota City with other cities to see how it stacks up, or explore all cities in Nebraska.
Similar Cities Near Dakota City
Cities in Nebraska with a similar population size.
| City | Population | Median Income | Home Value | |
|---|---|---|---|---|
| David City | 3,013 | $66,585 | $158,800 | Compare |
| Minden | 3,020 | $64,846 | $188,100 | Compare |
| Central City | 3,039 | $62,012 | $158,300 | Compare |
| Ashland | 3,083 | $80,948 | $229,100 | Compare |
| Valley | 3,113 | $106,750 | $515,100 | Compare |
| Hickman | 2,834 | $104,219 | $294,200 | Compare |
| Milford | 2,656 | $80,997 | $225,200 | Compare |
| Valentine | 2,632 | $53,438 | $135,600 | Compare |
Demographics
Racial & Ethnic Composition
Economy & Education
Housing
Other Cities in Nebraska
Data source: US Census Bureau ACS 5-Year Estimates. Last updated: 2026-04-05.
Compare Dakota City With Other Cities
Frequently Asked Questions about Dakota City
What is the population of Dakota City, NE?
The population of Dakota City, NE is 2,980 according to the latest US Census Bureau American Community Survey estimates. This makes it a small town in Nebraska.
What is the median household income in Dakota City?
The median household income in Dakota City, NE is $80,433 per year, which is 7% above the national median of $75,149.
What is the median home value in Dakota City?
The median home value in Dakota City, NE is $170,200, which is 31% below the national median of $244,900. The majority of housing units are owner-occupied.
What is the average rent in Dakota City?
The median monthly rent in Dakota City, NE is $1,046, which is 10% below the national average of $1,163/month.
What is the unemployment rate in Dakota City?
The unemployment rate in Dakota City, NE is 6.2%, compared to the national average of 3.7%. Job seekers may want to research the dominant industries in the area.
Is Dakota City, NE a good place to live?
Dakota City offers above-average incomes, affordable housing, and growing employment opportunities. With a population of 2,980 and a median age of 28.6, the city appeals to young professionals and families.
How educated is Dakota City, NE?
12.8% of residents in Dakota City aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The educational profile reflects the area's industry mix and employment landscape.
What is the cost of living in Dakota City?
Key cost-of-living indicators for Dakota City, NE: median home value is $170,200 (31% below national), median rent is $1,046/month, and median household income is $80,433. The home-value-to-income ratio is 2.1x, indicating relatively affordable housing relative to local incomes.
What is the poverty rate in Dakota City?
The poverty rate in Dakota City, NE is 8.7%, compared to the national average of 12.4%. This below-average poverty rate reflects generally favorable economic conditions in the community.
How diverse is Dakota City, NE?
Dakota City's population is 37.7% White, 6.4% Hispanic or Latino, 0.0% Black or African American, 5.1% Asian, and 0.2% two or more races. 16.6% of residents are foreign-born.