A Tale of Two Midwestern Cities: What Omaha Can Learn from Des Moines

Note: This is the final blog post by Jakob Myers, the Platte Institute’s intern for the last year. Jakob has made great contributions to important policy areas for us since coming on board. This blog post is adapted from a research paper he wrote for one of his courses this spring and kicks off a series of posts we have planned on Nebraska’s demographic and workforce challenges. This fall, Jakob will be attending the University of Nebraska College of Law in Lincoln. 

Des Moines’ Rise in the Midwest

For years, Omaha and Des Moines have occupied similar places in the Midwest economy. Both are regional business hubs with strong financial sectors, affordable costs of living, and reputations as good places to build careers and raise families. Yet increasingly, the two cities are moving in different directions. While Omaha has remained relatively stable, Des Moines has emerged as one of the Midwest’s fastest-growing metro areas, attracting businesses, young professionals, and college graduates at an impressive pace. As Nebraskans and Nebraska leaders grow increasingly concerned about the “brain drain” and the loss of young talent, the contrast between the two cities warrants attention.

In my recent class through the University of Nebraska Omaha, Urban/Regional Development, I conducted an economic analysis report on the city of Des Moines, Iowa, based on labor and output data from the Bureau of Labor Statistics. The report focused on the growth of Des Moines as compared to Omaha over the previous two decades. In particular, I found that the Des Moines metro area has experienced an employment growth of 18.4% over the last decade, roughly five percentage points higher than the national average, along with a population growth of 6.7% since 2020. Such drastic conditions can likely be attributed to the city’s low unemployment rate of 3.2%, a full percentage below the national average, and its low cost of living, which sits 17% below the U.S. average. Basic economic data of this variety speaks to why Des Moines is one of the fastest-growing major metro areas in the Midwest. However, we should be left wondering, why is this the case?

Why Des Moines Is Attracting Talent

Des Moines has been able to successfully reinvent itself over the past several decades. Once rooted in mining and manufacturing, the city has transformed into a modern economy centered on insurance, finance, and professional services. Today, companies such as Principal Financial Group and Wells Fargo help anchor a professional ecosystem that continues to attract educated workers and new investment. My report found that Des Moines’ strongest “base industry” by far is Financial Activities, reinforcing the city’s reputation as the “Hartford of the West.”

What makes Des Moines especially notable is not simply its growth, but its adaptability. In my report, I found that the city has consistently expanded into industries that are increasingly competitive at the national level. Des Moines posted positive competitive effects in 10 out of 12 industries measured through shift-share analysis based on data from the Bureau of Labor Statistics, suggesting broad-based economic momentum rather than growth concentrated in only one sector. Thus, rather than relying entirely on legacy sectors, Des Moines has built momentum in finance, healthcare, education, and business services. In addition to a strong Base Multiplier and economic Diversity Index, the data reflects that while the city has become increasingly specialized in finance and insurance, it still retains a fairly balanced economy overall.

Such a perception of balance is crucial in a growing city. Young professionals increasingly choose cities not only based on salary opportunities, but also on whether a city feels energetic, modern, and full of long-term potential. Des Moines has been able to cultivate that image. Its combination of affordability, job growth, and expanding professional industries has made it a destination for graduates looking to stay in the Midwest without sacrificing career opportunities.

Omaha’s Challenge

Omaha, Nebraska, remains an economically important city with major strengths of its own. The presence of companies such as Berkshire Hathaway, along with strong transportation, healthcare, and education sectors, has helped Omaha maintain a stable and diverse economy. In my report, Omaha showed a larger number of “base industries” than Des Moines, demonstrating the city’s broad economic foundation.

But the comparison with Des Moines reveals an important distinction: Omaha increasingly appears stable, while Des Moines appears dynamic. My analysis found that Des Moines outperformed Omaha in several measures tied to economic competitiveness and growth potential. Des Moines posted a Base Multiplier roughly one point higher than Omaha’s and generated approximately six percent more Export Employment, indicating that its strongest industries are producing larger spillover effects throughout the local economy.

Perhaps most importantly, the competitive industry analysis in my report suggested that Des Moines is building momentum in industries that are outperforming national averages, while Omaha appears more reliant on maintaining existing strengths. While stability is valuable, younger workers often prioritize cities they perceive as growing and evolving. Des Moines has managed to become a destination for workers across the country, including Nebraska, pitching itself as a place that offers strong career trajectories and great economic energy.

What Omaha Can Learn

Omaha has many of the ingredients needed to compete successfully with Des Moines in economic terms. It has strong universities, major employers, affordable living, and an improving urban core. But retaining talent will require a more intentional focus on growth industries, stronger connections between universities and employers, and continued investment in creating a vibrant urban environment that appeals to younger generations.

The comparison between Omaha and Des Moines should not be viewed as a story of failure versus success. Instead, it is a reminder that cities must continually adapt in order to compete. One of the clearest conclusions from my report was that Des Moines has spent decades evolving its economy and positioning itself as a city with momentum. The data strongly suggests that both businesses and workers increasingly want to participate in its economy. If Omaha and Nebraska hope to slow brain drain and retain more of their young talent, they must focus not only on preserving stability but also on building a stronger sense of growth, opportunity, and long-term momentum for the next generation.