Falls City, Nebraska, a small community in Richardson County, has been named the poorest town in the state according to a 2023 analysis by 24/7 Wall St. This designation is based on several key economic indicators, most notably median household income, poverty rates, and the proportion of residents relying on government assistance.
Economic Profile of Falls City
Falls City has a population of just over 4,000 people, with recent estimates putting the number at around 4,009 for 2025.. The town’s economic challenges are evident in its median household income, which, according to various sources, ranges from $37,712 to $45,750. Even at the higher end of this range, Falls City’s median income falls well below Nebraska’s state median of approximately $66,644. This significant income gap highlights the financial struggles many residents face.
Poverty is a persistent issue in Falls City. The poverty rate is reported to be between 11.4% and 12.5%, with 8.2% of families living below the poverty line. Additionally, about 10.3% of households receive government aid, underscoring the reliance on public assistance for basic needs.
Demographic and Social Context
Falls City’s population is predominantly White (over 90%), with small percentages of residents identifying as two or more races, Hispanic, or Native American. The median age hovers around 40.6 years, and the community has a relatively balanced gender split. Educational attainment is modest, with only 8% of residents holding a master’s degree or higher and 16% holding a bachelor’s degree. A significant portion of the population (42%) has a high school diploma as their highest level of education.
Income distribution in Falls City further illustrates economic hardship: nearly a quarter of households earn less than $25,000 per year, and another 25% fall in the $25,000–$44,000 range5. Only 9% of households report incomes above $150,000.
Economic Development and Future Prospects
Despite these challenges, Falls City is not without hope for economic revitalization. Recently, the town received an ‘A’ rating for its Bioeconomy Development Opportunity (BDO) Zone, signaling strong potential for growth in the bioeconomy sector. This rating has already attracted major investment, such as the establishment of the world’s largest decarbonized plastics production facility by Citroniq Chemicals LLC. Local leaders are optimistic that these developments will create jobs and stimulate the local economy, potentially improving the financial outlook for many residents.
Context Within Nebraska
While Falls City is recognized as the poorest town by median household income among communities with 1,000 to 25,000 residents, other Nebraska cities such as Wayne and Beatrice also face significant economic challenges, with higher poverty rates in some cases. However, the combination of low median income, notable poverty rates, and a high reliance on government assistance sets Falls City apart as the most economically disadvantaged town in the state.
Falls City’s designation as the poorest town in Nebraska is rooted in its low median household income, elevated poverty rates, and substantial reliance on public assistance. While the town faces significant economic hurdles, recent investments in the bioeconomy sector offer a glimmer of hope for future improvement and job creation. For now, Falls City remains a stark example of rural economic struggle within the Cornhusker State.
Sources
[1] https://www.iheart.com/content/2023-11-13-nebraska-town-named-the-poorest-in-the-entire-state/
[2] https://worldpopulationreview.com/us-cities/nebraska/falls-city
[3] https://www.nebraska-demographics.com/falls-city-demographics
[4] https://nebraskaagconnection.com/news/falls-city-wins-top-bioeconomy-rating
[5] https://www.niche.com/places-to-live/falls-city-richardson-ne/residents/