Slightly lower than the national average, the cost of living in Minnesota has increased over time but is still middle-of-the-road compared to the rest of the nation. In Minnesota, a single adult should make at least $33,708 to live comfortably.

If you love shopping ‘til you drop or prefer the wilderness, Minnesota has everything you could need and more. Whether you want to get out on the lake, hike through the forest, or get lost in America’s largest mall, with Minnesota’s lower cost of living, you can ideally afford it all.

To learn what you’ll need to earn living in Minnesota, Jerry, the licensed broker and

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How high is the cost of living in Minnesota?

Compared to the rest of the nation, Minnesota’s cost of living is middle-of-the-road. While it isn’t the most expensive, it isn’t the cheapest either.

When looking at the cost of living index in the U.S., 100 is the national average. Over 100 indicates a higher cost of living, and under 100 has a more affordable cost of living.

Minnesota’s cost of living is 97.2, making it the 26th most expensive or least expensive state, depending on how you look at it! That said, it’s right on par with its neighboring states, with South Dakota, Wisconsin, and North Dakota, taking up spots 23 to 25 on the list.

With a slightly lower cost of living, you’re likely wondering what everyday needs would cost if you chose to move to Minnesota. To compare with the national average, we’ll explore the costs of essentials in Minnesota, like food, healthcare, housing, and transportation.

Food: $347 to $822 per month

When looking at the cost of food in Minnesota, we’re talking about essentials, meaning groceries and necessities, not take-out.

According to Minnesota’s Employment and Economic Development

Cost of Living Tool

, the average cost of food per month in the state is $347 to $822, depending on family size, age, location, and income. Based on this, a single adult under 50 would spend $359 on groceries each month, while a single adult over 50 would spend $347. The average Minnesota family of three would pay $822 a month.

The Bureau of Labor Statistics says that the average U.S. household will spend $411 a month on groceries as of 2020.

That said, remember this amount doesn’t include non-essentials, so your afternoon ice coffee or weekly breakfast sandwich isn’t included.

Healthcare: $157 to $561 per month

The cost of healthcare for an individual or family is dependent on several factors, but on average, a single adult will spend between $157 to $196 per month on healthcare based on age. While a family of three can expect to spend at least $561 a month.

Nationally, U.S. residents spend an average of $477 per month on healthcare.

That said, if you have specialty prescriptions or above-average healthcare expenses, you’ll likely end up spending more than the national or state average.

Housing: $580 to $1,253 per month

As of June 2022, the median home price in Minnesota was $359,950. But how will that affect your monthly expenses? Based on the size of your home, here's how

HUD’s median rent data

breaks it down:

Average studio rent: $580

Average one-bedroom rent: $662

Average two-bedroom rent: $833

Average three-bedroom rent: $1,118

Average four-bedroom rent: $1,253

However, you may find you spend more or less, depending on where in the state you live, amenities you need, etc.

For example, the average rent for a one-bedroom apartment in the Minneapolis-St. Paul-Bloomington area is $1,136, and a two-bedroom is $1,410, making the area 96% more expensive. That said, it’s still less expensive to rent in Minnesota, as the U.S. average for a one-bedroom apartment is $1,769, and a two-bedroom apartment is $2,105.

Compared to the rest of the U.S., it’s also less expensive to buy a home in Minnesota, as the median home price in the U.S. is $428,700. If you purchase a home in Minnesota, the median monthly mortgage payment is $1,595.

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Transportation: $667 to $814

When looking at transportation, Minnesota is just under the national average. A single adult in Minnesota can expect to spend about $667 a month on transportation costs, while a family of four will spend closer to $814, right below the U.S. average of $818 per month.

As previously mentioned, these averages may fluctuate based on your location or access to various transportation options. Here are some examples of how much it costs to get around in Minnesota:

Average annual cost of car insurance in Maine: $1,417 to $1,780 (

liability car insurance

vs. full coverage car insurance, which includes comprehensive and collision.)

Average commute time: 23 minutes

Average cost per gallon of gas, July 2022: $4.59

Average cost of Go-To Card 31-day unlimited pass in Minneapolis: $36-$120

MORE:

Minnesota minimum car insurance laws

How much you need to live comfortably in Minnesota: $33,708 to $62,688

As a single adult in Minnesota, you’ll need to make at least $33,708 per year or $16.21 an hour to live comfortably. A family of four (two adults and two children) with a single income would need $62,688 per year or $30.14 an hour.

The minimum wage for small businesses in Minnesota is $8.42 an hour, and $10.33 an hour for large businesses. However, in cities like Minneapolis and St. Paul, the minimum wage is higher due to the increased cost of living. The minimum wage in St. Paul varies between $10.75 and $15.00, depending on the size of the company you work for.

Even with a higher minimum wage, it’s clear that it’s hard for many to make a living wage and live comfortably in Minnesota.

Here’s what you may spend on basic non-essentials items in Minnesota, compared to national averages:

Average cost of a date: $109.81 (U.S. average: $116)

Average cost of a night at the movies: $9.32 (U.S. average: $10.61)

Average cost of a Big Mac: $4.43 (U.S. average: $3.99)

Nickelodeon Universe + Sea Life Minnesota Aquarium tickets: $62.99 per person (U.S. average theme park ticket price: $91)

Average sales tax: 6.875%(U.S. average: 5.09%)

While it’s possible to live comfortably in Minnesota for under $33,708 a year, it all depends on your situation and what you need—everyone is different!

The Minnesota cities with the lowest cost of living

Although the cost of living is higher in most of Minnesota’s larger cities, there are plenty of smaller cities that have a lower cost of living—and access to all your big city needs.

Montevideo (COLI: 70.5): Nicknamed the “City of Parks,” Montevideo is an outdoor lovers' paradise located on the convergence point of the Minnesota and Chippewa Rivers.

Hibbing (COLI: 74): The birthplace of Bob Dylan and home to the world’s largest iron ore open pit, Hibbing is filled with culture, community, and industry.

New Ulm (COLI: 81): The “Most German City in America,” New Ulm is full of culture and history.

Owatonna (COLI: 84): Filled with history and only an hour outside of Minneapolis, Owatonna has everything you need—you can even visit Justin Bieber’s albino boa construction at the RAD Zoo.

Kasson (COLI: 93): A suburb of Rochester, Kasson has a small town feel with access to larger city amenities.

MORE:

The 10 biggest lakes in Minnesota

How to easily find home and car insurance in Minnesota

A lower cost of living doesn’t always mean everything is less expensive than the national average. Thankfully, if you find your home and car insurance costs in Minnesota starting to creep up, the

Jerry

app can help.

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