| Index | Minneapolis | Minnesota | National |
| Cost of living | 114 | 100 | 100 |
| Groceries | 101 | 100 | 100 |
| Health care | 100 | 100 | 100 |
| Housing | 141 | 100 | 100 |
| Transportation | 105 | 100 | 100 |
| Utilities | 106 | 104 | 100 |
| Lifestyle & Entertainment | 105 | 100 | 100 |
| Household Items | 99 | 100 | 100 |
| Education & Childcare | 101 | 99 | 100 |
Getting a feel for the cost of living in Minneapolis is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Minneapolis is 114, which is 14% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.
Housing costs are a very significant part of the Minneapolis cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 40.6% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.
The real experts on a city are its residents. That's why we reached out to 51 locals to get their views on the cost of living in Minneapolis. We surveyed the residents and asked them if they felt like prices were affordable or out of reach. The results were as follows. 35% found it budget-friendly with decreasing prices, while 65% said it's simply not affordable as prices have continued to rise.
Is Minneapolis affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Minneapolis, for instance, where the median home price falls 51.8% higher than the national average, and monthly rent rates are 14.5% higher than usual. Additionally, median income levels contribute to the equation, with Minneapolis flaunting a median household income of $99,202, 22% higher than the national norm.
Groceries: Grocery expenditures have undergone notable escalation over the last 2-3 years. In some markets, the cost of food products has surged by more than 20%, while others have experienced only modest increments. These fluctuations in food costs can have a significant impact on the overall cost of living in any region. In Minneapolis, the groceries index registers 0.9% higher than the national average.
Housing: Elevated demand for housing within coveted locales has the propensity to escalate both property values and rental rates, thereby serving as a primary catalyst for an augmented cost of living. Conversely, areas witnessing diminished housing demand, particularly within less desirable environs, often experience an inversely proportional effect, leading to price reductions and subsequently contributing to a more modest cost of living. In Minneapolis, the housing index is 40.6% higher than the national average.
Utilities: Similar to the prices of any other goods or services, utility expenditures can exhibit substantial variability, influenced by factors such as climate, energy sources accessibility, geographical location and state regulations. Costs related to electricity, water, heating, and waste disposal can fluctuate, whether higher or lower, contingent on the city or state. In Minneapolis, the utilities index is 5.5% higher than the national average.
The Minneapolis cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $151,914 | $12,660 | $3,544 | $4,558 |
| Renters | $65,792 | $5,483 | $1,535 | $1,974 |
| State | General Sales Tax | With Max Surtax |
| Minnesota | 6.875% | 7.875% |
| State | Income Tax (Low) | Income Tax (High) |
| Minnesota | 5.35% | 9.85% |
| City | Population | Cost of Living Index | National Avg. |
| Landfall, MN | 819 | 72 | 27.9% |
| South End, MN | 66 | 78 | 22.1% |
| Hilltop, MN | 1,045 | 80 | 20.0% |
| St. Anthony city (Stearns County), MN | 108 | 84 | 16.4% |
| St. Paul Park, MN | 5,562 | 101 | 1.2% |
| Minneapolis, MN | 439,880 | 114 | 13.7% |
| City | Population | Cost of Living Index | National Avg. |
| Laval, QC | 445,050 | n/a | |
| Oakland, CA | 431,366 | 188 | 88.4% |
| Halifax, NS | 451,852 | n/a | |
| London, ON | 421,456 | n/a | |
| Virginia Beach, VA | 463,341 | 120 | 19.7% |
| Minneapolis, MN | 439,880 | 114 | 13.7% |
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