A
5%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
9%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Owatonna Minnesota National
Cost of living9599100
Goods & Services98100100
Groceries9998100
Health care111109100
Housing91100100
Transportation9597100
Utilities9293100

An Overview of Cost of Living in Owatonna, MN

Are you thinking about relocating, but curious about the potential cost of living in Owatonna? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Owatonna stands at 95, making it 5% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

The cost of living in Owatonna aligns closely with the national average when compared to other cities across the nation. Everyday essentials such as groceries, goods and services, health care and utility bills are priced at a level consistent with the average in similar urban areas. Owatonna residents can anticipate that their daily expenses won't be significantly higher than those in an average city, ensuring that the cost of living remains manageable.

Is Owatonna Affordable?

Is Owatonna an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Owatonna, the median home price is 7.2% lower than what most folks pay across the country, and monthly rent prices are 14.5% lower than the usual rates. Income levels in Owatonna come in at $66,037, which is 19.4% higher than the national average.

What Factors can Influence the Cost of Living in Owatonna?

Transportation: If public transportation is limited or not available, residents may need to own and maintain vehicles, which can add to the cost of living. Gas, insurance, regular maintenance and potentially lease or finance payments will all need to be paid on a monthly basis. In Owatonna, the transportation index is 5.5% lower than the national average.

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Where is the Data From?

The Owatonna cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Owatonna is 4% lower than the Minnesota average
  • The cost of living in Owatonna is 5% lower than the national average
  • Owatonna housing is 9% lower than the national average
  • Minnesota general sales tax is 35% higher than the national average
  • Minnesota state income tax is 106% higher than the national average

Most Affordable Places to Live in and Around Owatonna

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Compare Owatonna, MN Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$85,695$7,141$1,999$2,571
      Renters$35,451$2,954$827$1,064
      A good indicator of the general affordability of housing in Owatonna, MN, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Owatonna, the median monthly income is $85,695 for those who own their own homes. Under the standard rule, that income level would allow for $1,999 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $35,451, per the median income in the area. That would allow for renters to spend up to $827 on monthly rental expenses.

      Minnesota Sales Tax

      State General Sales Tax With Max Surtax
      Minnesota 6.875% 7.875%

      Minnesota Income Tax

      State Income Tax (Low) Income Tax (High)
      Minnesota 5.35% 9.85%

      Goods & Services

      Item Owatonna National avg. Difference
      Haircut $25.06$24.263.3%
      Beauty Salon $40.42$45.5611.3%
      Toothpaste $3.74$3.701.1%
      Shampoo $1.45$1.2813.5%
      Movie $10.06$12.1317.1%
      Bowling $15.00$18.0016.7%

      Groceries

      Item Owatonna National avg. Difference
      Ground Beef $5.78$5.841.1%
      Fried Chicken $1.41$1.5710.4%
      Milk $4.58$4.671.9%
      Potatoes $4.68$4.935.2%
      Pizza $12.97$12.097.3%
      Beer $9.18$10.4111.8%

      Health Care

      Item Owatonna National avg. Difference
      Optometrist $144.10$125.6814.7%
      Doctor $181.22$135.7833.5%
      Dentist $110.22$113.292.7%
      Ibuprofen $11.40$10.657.0%
      Lipitor $486.32$468.603.8%

      Housing

      Item Owatonna National avg. Difference
      Home Price $171,400.00$184,700.007.2%
      Avg. Mortgage Payment $1,813.63$2,346.6922.7%
      Apartment Rent $811.00$949.0014.5%

      Transportation

      Item Owatonna National avg. Difference
      Gasoline $3.31$3.464.2%
      Tire Balancing $54.83$59.928.5%

      Utilities

      Item Owatonna National avg. Difference
      All Electricity $169.27$193.9912.7%
      Phone $191.10$192.250.6%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Claremont, MN7738415.7%
      New Richland, MN1,0398415.6%
      Waseca, MN8,892909.6%
      Kenyon, MN1,865919.3%
      Morristown, MN959918.6%
      Owatonna, MN25,716954.5%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      White Bear Lake, MN25,7181076.6%
      Reedley, CA25,71011514.5%
      Laurel, MD25,73412525.5%
      Green, OH25,737990.5%
      Tecumseh, ON25,689n/a 
      Owatonna, MN25,716954.5%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.