An overview of the general cost of living index for Two Harbors, MN is displayed above for your reference. Residents in Two Harbors, MN enjoy a cost of living index of 96. This index is 6% lower than the Minnesota average, and 4% lower than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Two Harbors, MN, the average cost of goods and services is 5% higher than it is in Minnesota, and it is 12% higher than the national average.