Cost of Living in Two Harbors, MN

With a cost of living index of 73, Two Harbors, MN is one of the most affordable cities in the country. Living here is 27% cheaper than the national average and 10% below the Minnesota state average of 82. Two Harbors is a small community of 3,598 residents.

Housing costs are the biggest factor in Two Harbors's cost of living. The median monthly rent is $879 (33% below the US median of $1,319), and the median home value sits at $187,100 (39% below the national median of $304,900). At current prices, the median home costs roughly 3x the median household income — well within traditional affordability guidelines.

The median household income in Two Harbors is $62,885, which is 16% lower than the national median of $75,149. Residents spend roughly 17% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Two Harbors. The area sees an average annual temperature of 40.6°F, with summers averaging 65°F and winters around 15°F. Annual rainfall totals 31.2 inches spread over roughly 133 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Everyday prices in the Duluth, MN-WI (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.