A+
8%
Overall NAT. AVG.
2%
Goods & Services NAT. AVG.
20%
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 New Ulm Minnesota National
Cost of living9299100
Goods & Services98100100
Groceries9998100
Health care111109100
Housing80100100
Transportation9597100
Utilities9293100

An Overview of Cost of Living in New Ulm, MN

Understanding the cost of living in New Ulm can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The New Ulm cost of living index is 92, which is 8% lower than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in New Ulm 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. New Ulm 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 New Ulm Affordable?

Is New Ulm 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 New Ulm, for instance, where the median home price falls 21.2% lower than the national average, and monthly rent rates are 18.4% lower than usual. Additionally, median income levels contribute to the equation, with New Ulm flaunting a median household income of $58,839, 6.4% higher than the national norm.

What Factors can Influence the Cost of Living in New Ulm?

Utilities: As with the prices of anything else, utility costs can exhibit significant variations, contingent on factors like climate, energy source availability, geographic location and state regulations. The expenses associated with electricity, water, heating, and waste disposal can fluctuate, either upward or downward, depending on the particular city or state. In New Ulm, the utilities index registers 8% lower 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 New Ulm, the housing index is 20.4% lower than the national average.

Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In New Ulm, healthcare costs are 11% higher than the national average.

Where is the Data From?

The cost of living data in New Ulm displayed above is sourced from the C2ER cost of living index, which serves as a practical tool for comparing living expenses across urban areas. Published on a quarterly basis, this index aggregates data from over 300 independent researchers, encompassing more than 60 goods and services, in 6 different categories. The weightings assigned to cost differences rely on government survey data that tracks the spending habits of professional and executive households. It's worth noting that the C2ER index excludes data on sales or income tax rates, while AreaVibes integrates tax rates into the overall cost of living evaluation for each region.

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Cost Of Living Quick Facts

  • The cost of living in New Ulm is 7% lower than the Minnesota average
  • The cost of living in New Ulm is 8% lower than the national average
  • New Ulm housing is 20% lower than the national average
  • Minnesota general sales tax is 35% higher than the national average
  • Minnesota state income tax is 137% higher than the national average

Most Affordable Places to Live in and Around New Ulm

See all the best places to live around New Ulm

Compare New Ulm, 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$75,181$6,265$1,754$2,256
      Renters$36,594$3,050$854$1,098
      A good indicator of the general affordability of housing in New Ulm, 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 New Ulm, the median monthly income is $75,181 for those who own their own homes. Under the standard rule, that income level would allow for $1,754 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $36,594, per the median income in the area. That would allow for renters to spend up to $854 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 New Ulm 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 New Ulm 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 New Ulm 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 New Ulm National avg. Difference
      Home Price $145,600.00$184,700.0021.2%
      Avg. Mortgage Payment $1,813.63$2,346.6922.7%
      Apartment Rent $774.00$949.0018.4%

      Transportation

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

      Utilities

      Item New Ulm 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.
      Hanska, MN4268218.3%
      Fairfax, MN1,1358218.2%
      Lafayette, MN5458614.3%
      Sleepy Eye, MN3,3788811.5%
      Lake Crystal, MN2,496946.2%
      New Ulm, MN13,209927.8%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Auburn, IN13,2099010.5%
      Wellington North, ON13,212n/a 
      Rochester, MI13,20312423.7%
      Verona, WI13,21512222.0%
      Lahaina, HI13,21618887.8%
      New Ulm, MN13,209927.8%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.