What is the Average Cost of Living in Minnesota in 2025?

Considering a move to Minnesota? With its diverse economy and vibrant regions like Minneapolis-Saint Paul, Minnesota offers more than just beautiful lakes. The average cost of living in Minnesota is about 5% below the national average, making it an attractive option for many.

However, expenses can vary widely across different categories. Here’s a closer look at what to expect in housing, utilities, and other living costs across the state.

Understanding Minnesota’s Average Cost of Living

The average cost of living in Minnesota reflects a moderate and manageable level of expenses. To maintain a middle-class lifestyle, residents generally need an annual income of around $56,489, which is slightly above the state’s average salary of $52,043.

Typical monthly expenses in Minnesota include an average rent of $1,525 and utilities costing about $631 per month. Grocery prices are slightly above the national average, at 102.1%, while healthcare expenses average around $820 monthly.

Transportation costs in Minnesota are competitive compared to regional peers. However, it’s important to note that costs tend to be higher in metro areas like Minneapolis-Saint Paul compared to smaller towns.

Housing and Rental Market in Minnesota

Minnesota’s housing market is a key factor in the state’s cost of living, directly impacting residents budgets. While prices are reasonable compared to the national average, housing options vary widely.

• Minnesota’s average rent is $1,525/month.
• The median home price stands at $344,191.

Compare this to nearby states:

• Wisconsin rent is about 14.8% lower; the median home price is 4.9% lower.
• North Dakota offers rents roughly 25% lower and homes 19% cheaper.
• Iowa has even more affordable housing, with rents 24–26% lower and homes 26–34% less expensive.
• Illinois is more expensive, with rents 21% higher and home prices 3.7% pricier.

Major urban centers like Minneapolis-Saint Paul see higher housing costs but provide more jobs and amenities. Cities such as Rochester and Duluth offer some relief with more affordable housing and an appealing quality of life.

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Utilities and Other Living Expenses in Minnesota

Utility costs can add up, especially during Minnesota’s cold winters. The average monthly utility bill is about $631, primarily due to heating needs.

• Wisconsin’s utility costs are nearly the same (+0.3%).
• North Dakota is much cheaper, with utilities about 19% below the national average.
• Iowa’s utilities fall 12% below national averages.
• Illinois utilities are slightly below average (-3%).

Groceries in Minnesota are about 2% above the national average, while transportation costs remain competitive regionally. Public transport use is growing, especially in metro areas, helping reduce commuting expenses.

Healthcare is a notable expense, with average yearly costs around $9,839. Insurance premiums are rising sharply (9%-27%), similar to neighboring states.

Income and Job Market in Minnesota

The average salary in Minnesota is $52,043, which is modestly higher than in Wisconsin and Iowa. However, it is lower than North Dakota’s $60,570 average.

To live comfortably, workers typically require around $56,489 annually. This salary reflects Minnesota’s strong and diverse economy, especially in healthcare, technology, and manufacturing sectors centered in Minneapolis, Rochester, and Duluth.

Is Minnesota Expensive?

Overall, the state isn’t too costly. It combines reasonable expenses with a comfortable standard of living.

• Overall costs are 5% below the national average.
• Housing and groceries are somewhat higher than in nearby lower-cost states.
• Utilities and healthcare costs are stable but rising.

The strong economy, good amenities, and quality services make Minnesota a worthwhile place to live for many.

Regional Insights

Different parts of Minnesota come with different price tags.

• Twin Cities (Minneapolis-Saint Paul): Economic and cultural hub with higher salaries and living costs.
• Rochester: Healthcare center with moderate costs and job opportunities.
• Northern Minnesota (Duluth and others): Lower housing costs and outdoor lifestyle appeal.

When relocating, check local market conditions and salary opportunities to match your budget.

Final Thought on Minnesota’s Cost of Living

The average cost of living in Minnesota is competitive and balanced. It is more affordable than many parts of Illinois and slightly higher than affordable neighbors like North Dakota and Iowa. Minnesota offers economic opportunities, reasonable housing, and a high quality of life for a moderate price.

For anyone considering relocation in the Upper Midwest, Minnesota is a compelling choice that combines affordability with a strong local economy.

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FAQs About Minnesota’s Average Cost of Living