Minnesota cost of living
Prices in Minnesota run at 98.6 against a national average of 100, which makes it the 22th most expensive of the 51 jurisdictions. Housing is the part that separates states: rents there sit at 91.3.
Where the difference actually is
Minnesota sits at 98.6, which is as close to the national average as this series gets. That makes it a useful reference point: a salary quoted here means roughly what the same salary means nationally.
The parts move together here rather than pulling against each other: goods at 100.5, rents at 91.3, other services at 90.8. Goods are close to national almost everywhere, because most are shipped and priced nationally, so it is worth noticing when rents behave the same way.
Low prices only help if pay does not fall by more. Dividing the local median wage by 98.6 is how to check, and the wage pages carry that comparison.
The vertical line is the national average of 100. Source: U.S. Bureau of Economic Analysis, Regional Price Parities, SARPP, 2024.
What it costs, in actual money
Parities are ratios. These are the figures behind them for Minnesota, drawn from the other datasets on this site.
| Minnesota | |
|---|---|
| Median home value | $305,500 |
| Median gross rent | $1,235 a month |
| Median household income | $87,556 |
| Average electricity bill | $119 a month |
| Effective property tax | 1.04% |
Metro areas in Minnesota
Within a state, cities and rural areas diverge sharply. A statewide parity averages over that.
| Metro area | All items | Goods | Rents | Rank |
|---|---|---|---|---|
| Minneapolis-St. Paul-Bloomington | 104.8 | 103.1 | 111.8 | #31 |
| La Crosse-Onalaska | 91.8 | 93.8 | 69.4 | #250 |
| Mankato | 91.0 | 95.4 | 79.9 | #271 |
| Fargo | 90.9 | 95.7 | 81.1 | #273 |
| Rochester | 90.8 | 95.4 | 78.6 | #276 |
| Sioux Falls | 90.6 | 95.5 | 77.6 | #278 |
| Duluth | 88.8 | 95.3 | 71.1 | #317 |
| St. Cloud | 87.6 | 95.4 | 65.1 | #347 |
| Grand Forks | 86.7 | 95.6 | 59.7 | #357 |
Minnesota cost of living: common questions
Is Minnesota expensive to live in?
Prices overall are 1.4% below the national average, at a parity of 98.6 where 100 is the country as a whole. It ranks #22 of 51. Goods run at 100.5, rents at 91.3 and other services at 90.8.
What is a salary in Minnesota really worth?
The median wage there is $53,810. Adjusted for local prices that buys what $54,574 buys nationally. A state that pays well and costs more can leave a household no better off, and this is the arithmetic that shows it.
What is a regional price parity?
An official measure from the Bureau of Economic Analysis of what a dollar buys in one place against the national average, set at 100. It is built from the same price collection that underlies the consumer price index, extended to compare places rather than time periods. It is the only government measure of cost of living differences between states.
Why is housing treated separately?
Because it carries most of the difference. In Minnesota rents sit 7.3 points below the state's overall parity. Goods barely vary between states, since most of them are shipped nationally; services vary more; housing varies enormously. Any cost of living comparison that does not separate housing is mostly measuring housing anyway.