Minnesota Cost of Living
Can you afford to live in the North Star State?
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Relocating to Minnesota offers the promise of four distinct seasons, vibrant cities and access to beautiful lakes — but managing your budget in a new state is just as important as exploring its scenery. Whether you are drawn by a new job, family ties or Minnesota’s active communities, understanding the real costs of daily life is essential to making a confident transition.
To determine the cost of living in Minnesota, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Minnesota spend $56,489 each year on goods and services, on average.
Jump to insightThe median rent in Minnesota is $1,332, versus the national median rent of $1,639.
Jump to insightResidents in Minnesota spend $250.56 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.93 in Minnesota.
Jump to insightRecent data shows that employees in Minnesota pay $1,672 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Minnesota
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Minnesota was $56,489 in 2023. This number represents the typical outlay Minnesotans make each year on essentials such as housing, medical care, food, utilities and other personal needs.
Here’s a breakdown of the largest spending categories in Minnesota:
| Category | Annual per-capita cost in Minnesota |
|---|---|
| Housing and utilities | $10,031 |
| Health care | $9,839 |
| Food and beverages for off-premises consumption | $3,721 |
| Gasoline and other energy goods | $1,576 |
| All other personal consumption expenditures | $31,321 |
| Total cost | $56,489 |
Housing costs in Minnesota
Housing is one of the largest monthly expenses for most Minnesota families. Based on 2025 data from Apartments.com, the average rent in Minnesota is $1,332, while the national average is $1,639. Costs can shift depending on whether you settle in the Twin Cities or a rural area, and the size of your home will affect your budget as well. According to the U.S. Census Bureau’s 2023 survey, typical Minnesota rents are:
- One-bedroom rent: $1,127
- Two-bedroom rent: $1,326
- Three-bedroom rent: $1,622
- Four-bedroom rent: $1,813
For those looking to purchase property, the median home price in Minnesota is $371,600. The U.S. median home price is $446,638, so buyers may find Minnesota’s market more accessible than in some other states.
Property taxes are another key consideration. Minnesota sits at No. 16 for highest effective property tax rates in the U.S., averaging 0.99%.
» COMPARE: Best moving companies in Minnesota
Food costs in Minnesota
Grocery bills are an essential part of any household budget. The most recent U.S. Census figures show the average weekly grocery spend in Minnesota is $250.56, compared with the U.S. average of $270.21.
Your food expenses will change depending on your eating habits and where you live. Residents who shop at major supermarkets or discount grocers in cities may find deals, while those in rural areas often have fewer options and may pay a premium for certain goods. Families eating out regularly — especially in the Twin Cities or popular tourist areas — will see noticeably higher monthly totals than those who cook most meals at home.
Transportation costs in Minnesota
Getting around Minnesota, whether by car or public transit, requires planning for fluctuating transportation costs. The average price per gallon of regular gas in Minnesota is $2.93, which is a bit cheaper than the U.S. average of $3.13.
For car owners, insurance is another recurring expense. The average auto insurance premium in Minnesota is $1,062.78, while the national average is $1,258.
Health care costs in Minnesota
Minnesotans spend about the same on health care as most Americans. The average annual employee contribution for employer-sponsored health insurance in Minnesota is $1,672, with employers typically covering the remaining $6,683 out of the $8,355 total premium.
Nationally, employees pay an average of $1,640 out of a total premium of $8,182.
Utility costs in Minnesota
Utility costs in Minnesota can be a noticeable part of the monthly budget, especially during harsh winter months. The average monthly electric bill is $110.78, compared with $136.84 nationally.
Natural gas comes in at $11.07 per thousand cubic feet, compared with $12.92 for the U.S. average.
FAQ
Does Minnesota have a high cost of living?
No, Minnesota does not have a high cost of living compared with the national average. Housing and rent often cost less than in many other states. Minnesotans also spend less on utility bills than most Americans. Health care costs are just about average in Minnesota, and groceries are slightly less than in the rest of the U.S.
Is Minnesota a good place to live?
Yes, Minnesota is a good place to live if you value strong communities, access to nature and a mix of urban and rural environments. Many people are choosing to move here, and Minnesota’s low cost of living also comes with a high quality of life and plenty of professional opportunities.
Plus, Minnesota is one of the best states for homeownership among young people.
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Is Minnesota good for renters?
Yes, Minnesota is good for renters. Rent typically costs less than the U.S. median, and there are a variety of rental options available throughout the state. However, renters should be aware that tenant protections are weaker than in some other states, and the quality of life for renters depends on local amenities and property management practices.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
