Cost of Living in Minnesota

Minnesota has a cost of living index of 82, making it 18% less expensive than the national average. The statewide median household income is $74,079 (1% below the US median of $75,149). Across 880 cities tracked in Minnesota, costs vary widely depending on location, proximity to metro areas, and local housing markets.

Housing drives most of the variation. The average median rent across Minnesota cities is $965/mo (27% below the national median of $1,319), and the average median home value is $205,661 (33% below the national figure of $304,900). There is a 131-point spread between the most affordable city, International Falls (index 63), and the most expensive, Minnetrista (index 194) — an enormous range that reflects dramatic differences in housing markets within the state.

Minnesota stands out as a strong value destination: the lower-than-average cost of living paired with near-average or above-average incomes means residents' dollars stretch further here than in most states.

The largest cities in Minnesota by population are Minneapolis (index 105, pop. 426,845), St. Paul (index 97, pop. 307,762), Rochester (index 96, pop. 121,638), Bloomington (index 111, pop. 88,838), and Duluth (index 80, pop. 86,863). Cost of living varies considerably even among these major population centers, highlighting the importance of comparing individual cities rather than relying on the state average alone.

Data: US Census Bureau (ACS 2023), Zillow, HUD, BEA Regional Price Parities. Updated monthly.