Cost of Living in Minneapolis, MN [2025]

Minneapolis, Minnesota, boasts a vibrant arts scene, a thriving music culture, and a renowned park system, making it an attractive city for many. However, a common question for potential residents is: "Can I afford to live in Minneapolis?"

Compared to major coastal cities like New York or San Francisco, the average cost of living in Minneapolis is significantly lower. This affordability allows residents to enjoy a comfortable lifestyle with more disposable income. While known for its cold winters, the city provides a robust public transportation system and a wealth of indoor entertainment options to keep residents comfortable throughout the year.

In this guide, we will delve deeper into the various aspects of the cost of living in Minneapolis, including housing, transportation, groceries, and healthcare. We'll also explore the city's affordability compared to other major Midwestern cities and provide valuable insights as you contemplate your move to the City of Lakes.

Cost of Living in Minneapolis

What Is the Cost of Living in Minneapolis?

As a major metropolitan area, the average cost of living in Minneapolis, MN can vary significantly depending on your lifestyle and chosen neighborhood. Overall, Minneapolis is approximately 5% less expensive than the average U.S. city. Average monthly spending in Minneapolis is $4,303. This lower cost of living can be attributed to factors like competitive housing markets in some areas and a strong local economy.

So, just what is the cost of living in Minneapolis, Minnesota? Best Places offers the following cost of living breakdown:

Neighborhoods within Minneapolis exhibit significant cost variations. Downtown Minneapolis offers high-rise living and proximity to entertainment, commanding a premium. Uptown, known for its vibrant nightlife and trendy boutiques, also has a higher cost of living. More affordable options can be found in Northeast Minneapolis, known for its arts and music scene, or South Minneapolis, which offers a wide range of residential areas with varying price points.

Where is the Cost of Living Highest in Minneapolis, MN?

Edina, a popular suburb known for its excellent schools and upscale shopping, is one of the most expensive areas in the Minneapolis metropolitan area. Rents in Edina can be quite high, with the average rent for a one-bedroom apartment exceeding $1,900 per month.

To better understand Edina's cost of living, let's compare it to the state and national averages. The following chart provides a breakdown of key cost of living categories in Edina:

Where is the Cost of Living Most Affordable in Minneapolis, MN?

Hopkins, MN, while slightly more expensive than living within Minneapolis city limits, is often considered among the most affordable suburban neighborhoods in the Minneapolis metropolitan area. With a median rent for a one-bedroom apartment around $1,749, Hopkins offers a more budget-friendly option compared to many other affluent suburbs like Edina.

The following chart compares the cost of living in Hopkins to Minneapolis and the national average across key expense categories:

How Much Is Rent in Minneapolis, MN?

According to Apartment List's database, as of January 2025, the median rent in Minneapolis is $1,343 per month. This places Minneapolis as the 57th most expensive large city in the United States. Notably, Minneapolis rents are currently 0.9% lower year-over-year, indicating a slight cooling in the rental market.

Here's how rent prices break down by bedroom size for apartments currently listed on our website:

The national median rent for a 1-bedroom is $1,203, while in Minneapolis, it's $1,213. Similarly, the national median for 2-bedrooms is $1,356, compared to $1,570 in Minneapolis. Overall, the national median rent is $1,370, making Minneapolis 2.0% more affordable at $1,343.

When considering the broader Minneapolis metro area, the median rent rises to $1,443. This means that living within Minneapolis proper offers a slight cost advantage, with rents 6.9% lower than the metro-wide average.

How Much is a 1-Bedroom Apartment in Minneapolis, MN?

To rent a one-bedroom apartment in Minneapolis, expect to pay a median of $1,213. One-bedroom rental prices can change based on neighborhood, so here are a few examples of starting rent prices in different Minneapolis neighborhoods:

How Much is a 2-Bedroom Apartment in Minneapolis, MN?

Across Minneapolis, the median rent for currently available listings is $1,570 a month. However, the following chart shows that starting rent prices for a two-bedroom apartment can vary widely by neighborhood:

How Much Is Housing in Minneapolis, MN?

The Minneapolis housing market offers a diverse range of options, from charming historic homes to modern condos. However, like many major cities, homeownership can be a significant investment. As of January 2025, the median listing home price in Minneapolis was $294,200. This figure provides a general overview, but it's important to remember that home prices can vary significantly depending on factors such as location, size, age, and condition.

Compared to other major Midwest cities, Minneapolis offers a relatively varied range of housing prices. While it may be more expensive than cities like Des Moines, Iowa, or Omaha, Nebraska, it generally falls below the median home prices in cities like Chicago, Illinois, and Milwaukee, Wisconsin.

While homeownership in Minneapolis can be challenging, there are strategies for finding more affordable options. Exploring neighborhoods further from the city center, considering fixer-uppers, and searching for alternative housing options like townhomes, condos, or duplexes can offer more affordable entry points into the housing market.

What Salary Do I Need to Live in Minneapolis, MN?

A common rule of thumb for budgeting is to spend no more than 30% of your gross monthly income on rent. This allows for sufficient funds for other essential expenses like groceries, transportation, utilities, and entertainment.

To afford the median rent of $1,343 in Minneapolis, following the 30% rule, you would need a gross monthly income of approximately $4,477. This translates to an annual salary of roughly $53,720.

For a more comprehensive perspective, consider MIT's living wage calculation. In Minneapolis, the living wage for a single adult is $26.63 per hour, or $55,358 per year. For a family of four with two working adults, the living wage is $33.24 per hour combined, translating to an annual income of approximately $69,139.

The median household income, according to the U.S. Census Bureau, in Minneapolis is $80,269. This suggests that a significant portion of the population can comfortably afford the median rent based on the 30% rule and meet the living wage requirements.

To help you find apartments within your budget, use our Rent Affordability Calculator Tool. Simply enter your desired budget and preferred neighborhood, and our tool will display a list of apartments that match your criteria.

How Much is Transportation in Minneapolis, MN?

Living in Minneapolis, a single adult can expect to spend around $9,577 annually on transportation, while a family of four may spend closer to $16,065. Despite a well-developed public transportation system that includes a light rail and extensive bus network, car ownership remains common, contributing to traffic congestion during peak hours.

Minneapolis boasts a Walk Score of 71, a Bike Score of 83, and a Transit Score of 55, reflecting its moderate walkability, strong bike-friendliness, and decent public transit availability. Neighborhoods like Downtown Minneapolis, Uptown, and Northeast Minneapolis stand out for their high walk, bike, and transit scores, making them ideal for alternative transportation options such as biking, walking, and rideshares.

For those relying on public transit, the Minneapolis Metro Transit offers cost-effective options, with bus fares starting at $2.00 and all-day passes available for $4.00. Ride-sharing services like Uber and Lyft provide flexibility but can be pricier. Car ownership, while convenient, adds costs for gas, insurance, maintenance, and parking, particularly downtown. Exploring options like biking, walking, and public transit can not only lower transportation expenses but also support a more sustainable and eco-friendly lifestyle in Minneapolis.

How Much Are Groceries in Minneapolis, MN?

Minneapolis is a foodie paradise with a tasty culinary scene, but balancing dining out with grocery expenses is key to managing your budget. Grocery costs in Minneapolis are 1.57% lower than the U.S. average, making home cooking an economical option. A single adult spends an average of $4,371 annually on food, while a family of four can expect to spend around $12,847, according to MIT’s Living Wage estimates. Shopping smart—such as purchasing fresh, seasonal produce at local farmers’ markets or exploring the city’s many ethnic grocery stores—can further stretch your budget while adding variety to your meals.

Dining out in Minneapolis is a delightful experience, with options to fit diverse tastes. Meals at an inexpensive restaurant typically start at $18, while a three-course meal for two at a mid-range restaurant can cost around $90 plus tip. The city’s rich culinary offerings feature everything from traditional American fare to global influences. Explore Scandinavian favorites like lutefisk, lefse, and Swedish meatballs; Somali dishes such as sambusa and bariis iskukaris; or authentic Asian cuisines including Japanese, Chinese, Korean, Vietnamese, and Thai. Minneapolis also offers exceptional Mexican cuisine, with numerous taquerias and restaurants throughout the city.

Balancing home cooking with dining out is a smart way to enjoy the city’s food scene while keeping costs in check. Cooking at home not only saves money but also lets you explore new ingredients and flavors, making use of the city’s unique grocery options to create delicious, budget-friendly meals.

How Much Is Child Care in Minneapolis, MN?

Childcare is a significant expense for most families, often second only to housing costs. In Minneapolis, childcare costs can vary greatly depending on the type of care, the age of the child, and the provider.

According to MIT's latest data, a family of four with two working adults can expect to spend around $30,100 per year on childcare. Factors like location, caregiver wages, and the availability of childcare options can significantly impact these costs.

To mitigate expenses, consider exploring alternative childcare arrangements such as nanny shares, part-time preschool programs, or after-school care programs.

How Much Is Healthcare in Minneapolis, MN?

Healthcare costs can vary significantly in Minneapolis, influenced by factors like age, health conditions, and insurance coverage. According to MIT, a single adult will spend approximately $2,481 on healthcare annually, while a family of four can expect to spend around $8,093.

Minnesota offers a variety of health insurance options, including private plans, government-sponsored programs like Medicare and Medicaid, and the state-run health insurance marketplace, MNsure.

How Much Are Utilities in Minneapolis, MN?

Utility costs in Minneapolis can vary significantly depending on factors like apartment size, energy efficiency, and individual usage habits. On average, renters can expect to pay around $132.06 per month for utilities, including electricity, water, gas, and fuel. That’s less than both the Minnesota and National averages.

Minneapolis, with its cold winters, can have higher energy costs, particularly during the heating season. To minimize expenses, inquire about the energy efficiency of the apartment unit before signing a lease.

Beyond basic utilities, consider the costs of mobile service, which typically average around $50.88 per month, and internet service, which usually costs around $60.44 per month.

By carefully considering your energy consumption habits and exploring energy-efficient options, you can help to manage your utility costs in Minneapolis.

Minneapolis, MN Fitness & Entertainment

Minneapolis offers residents a dynamic lifestyle with abundant opportunities for fitness, entertainment, and culture. The city’s extensive park system features miles of trails for walking, running, biking, and cross-country skiing, while the Chain of Lakes provides kayaking, canoeing, and stand-up paddleboarding. Fitness enthusiasts can also take advantage of the city's many gyms, studios, and yoga centers, with an average gym membership costing around $51.25.

Culturally, Minneapolis thrives with world-class museums like the Minneapolis Institute of Art, which houses an extensive collection spanning thousands of years, and the Walker Art Center, renowned for its contemporary and modern works. Theater enthusiasts can enjoy performances at the Guthrie Theater, known for its stunning architecture and top-tier productions, or the historic Orpheum Theatre, which hosts Broadway shows, concerts, and comedy acts.

The city’s lively music scene offers something for every taste, from intimate jazz clubs and lively nightclubs to iconic venues like First Avenue, a launchpad for legendary artists. Throughout the year, Minneapolis comes alive with events such as the Minnesota State Fair, drawing visitors with its eclectic food and entertainment, the Twin Cities Pride Festival celebrating diversity and inclusion, and the Minneapolis Aquatennial, a summer tradition featuring fireworks, parades, and water activities.

For sports fans, Minneapolis is home to several professional teams, including the Minnesota Twins (MLB), Vikings (NFL), Timberwolves (NBA), and Lynx (WNBA). Ticket prices vary, with Twins tickets averaging $64, Timberwolves at $102.31, Vikings at $151, and Lynx at $97, ensuring a range of options for game-day excitement.

How Much Are Taxes in Minneapolis, MN?

Minnesota has a progressive state income tax with rates ranging from 5.35% to 9.85% for top earners. This, combined with the state sales tax of 6.875%, contributes to the overall cost of living. In Minneapolis, the combined state and local sales tax rate is 9.875%, with the city of Minneapolis contributing 0.5%.

Property taxes in Minnesota vary depending on the property's value and location. The average effective property tax rate in Minnesota is 1.05% of the property's value.

Minneapolis’s Job Market

Minneapolis boasts a robust and diverse job market, driven by key industries such as healthcare, finance, technology, and education. The Minneapolis metro area is home to several Fortune 500 companies, including Target, 3M, and Best Buy, offering a range of corporate and retail career opportunities. The renowned Mayo Clinic, along with major healthcare systems like Allina Health and Fairview Health Services, makes Minneapolis a hub for medical professionals and researchers. Additionally, the city’s growing tech sector, supported by startups and established firms, continues to attract innovation and investment.

The presence of top-tier educational institutions such as the University of Minnesota contributes to workforce development and provides jobs in academia and research. Minneapolis also has a strong manufacturing and logistics sector, with companies like Cargill and General Mills playing a significant role in the local economy. While this economic strength fosters job growth and stability, it also influences the cost of living, as demand for housing and amenities rises. With a relatively low unemployment rate of 2.90% and competitive salaries, Minneapolis remains an attractive destination for professionals looking for career advancement in a thriving metropolitan environment.

Find Your Next Apartment in Minneapolis, MN

Minneapolis offers a dynamic and energetic lifestyle at a more affordable cost compared to many other major U.S. cities. With its renowned park system, thriving arts and entertainment scene, and a strong job market, the city offers something for everyone.

Ready to join the Minneapolis community? Start your apartment search today using our easy-to-use quiz. We'll help you find the perfect apartment that fits your budget and lifestyle.

FAQs: What to Know About the Cost of Living in Minneapolis [2025]

What is a livable wage in Minneapolis?

A livable wage in Minneapolis, MN, is approximately $26.63 per hour, or $55,358 per year for a single adult. This income level accounts for basic necessities like housing, food, healthcare, and transportation. To comfortably afford the median one-bedroom rent of $1,213 while following the 30% rule for housing expenses, an individual should earn at least $53,720 annually. This means a salary in the mid-$50,000 range is generally considered sufficient for a reasonable standard of living in the city.

Is it cheaper to live in Chicago or Minneapolis?

Minneapolis generally offers a lower cost of living than Chicago. Residents in Minneapolis spend an average of $4,303 per month, while Chicago residents spend $6,757. Housing costs reflect this difference, with a median one-bedroom rent of $1,213 in Minneapolis compared to $1,542 in Chicago. However, the "cheaper" city ultimately depends on individual factors like income, lifestyle preferences, and chosen neighborhoods within each city.

How expensive is it to live in Minneapolis?

Minneapolis offers a relatively affordable cost of living compared to many other major U.S. cities. Currently, our databases show that it costs $4,303 per month to live in Minneapolis.

What is the population of Minneapolis?

According to the U.S. Census Bureau, the population of Minneapolis is 429,954.