What’s the Cost of Living in Minneapolis-St. Paul, MN?

Located in the heart of the Midwest, Minneapolis-St. Paul region, or the Twin Cities, is a dynamic blend of urban excitement and picturesque charm. With its thriving arts scene, countless lakes, and a strong sense of community, it’s no wonder so many people are drawn to the area. But how much does it really cost to make this metro area your home? 

Whether you’re considering a move or just intrigued by what life in the Twin Cities looks like financially, we break it down in this guide. From housing and transportation to dining and recreation, here’s everything you need to know about residing in one of the country’s most diverse and livable metros.

Summary:

• Cost of Living in Minneapolis-St. Paul, MN

• Comparing Average Home Prices and Rent Costs in Minneapolis-St. Paul

• Other Living Expenses in Minneapolis-St. Paul, MN

  • Grocery Shopping and Dining Out in Minneapolis-St. Paul

  • Transportation Options and Fuel Costs in Minneapolis-St. Paul

  • Healthcare and Insurance Costs in Minneapolis-St. Paul

  • Utilities, Internet, and Phone Expenses in Minneapolis-St. Paul

  • Tax Rates in the Minneapolis-St. Paul Area

  • Recreation Costs in Minneapolis-St. Paul, Minn

• Average Salary in Minneapolis-St. Paul, MN

• Minneapolis-St. Paul Cost of Living Comparison

• Average Cost of New Construction Homes in Minneapolis-St. Paul by Neighborhood

• Cost of Living in Minneapolis-St. Paul, MN, Conclusion

Cost of Living in Minneapolis-St. Paul, MN

The Twin Cities offer a rare balance of big-city amenities and relative affordability. According to September 2024 data from RentCafe®, the average cost of living in Minneapolis-St. Paul is 2% lower than the state average and 6% lower than the national average. 

Housing dominates the cost of living discussion. With housing being 14% lower than the national average per RentCafe, Minneapolis often sees higher rental and home prices compared to its counterpart, St. Paul. Both cities, however, present a range of options for every budget—from trendy apartments downtown to cozy homes in community-oriented neighborhoods. 

Transportation is also affordable and surprisingly convenient, with public transit and bike-friendly paths complementing the local driving scene. Meanwhile, groceries, dining out, and recreation are refreshingly reasonable, and the region’s outdoor activities and cultural events make it easy to have fun without emptying your wallet. While costs vary depending on personal preferences, Minneapolis-St. Paul can offer great value for its quality of life.

Housing Costs in Minneapolis-St. Paul, MN

Housing in the Twin Cities comes with options galore, whether you’re a young professional searching for a sleek downtown loft or a growing household looking for a charming single-family home. Minneapolis tends to lean on the pricier side, especially in neighborhoods like Uptown or the North Loop, where modern apartments and condos reign supreme. Zillow® finds the average home value in Minneapolis to be in the upper $313Ks as of December 2024. St. Paul, on the other hand, offers charming historic homes and slightly more affordable options, particularly in areas like Highland Park or Mac-Groveland. The average home value in St. Paul is in the mid $279Ks per Zillow. 

Renters and buyers alike will find choices that run the gamut in price and style, and while housing costs have risen in recent years, they remain much more approachable than larger metros like Chicago or San Francisco. Apartments.com® reports that monthly rent for a one-bedroom apartment runs about $1,373 in Minneapolis and $1,250 in St. Paul. 

Offering a competitive market, but not an out-of-reach one, the Twin Cities housing scene is as diverse as its residents.

Other Living Expenses in Minneapolis-St. Paul, MN

While housing often takes the spotlight, a good budget should also account for other essential expenses—like groceries, transportation, and utilities. Thankfully, Minneapolis-St. Paul is known for being fairly wallet-friendly when it comes to day-to-day living.

Grocery Shopping and Dining Out in Minneapolis-St. Paul

Your grocery run in the Twin Cities can fit any budget, thanks to popular chains like Target® and Cub Foods® and premium stores like Lunds & Byerlys®. If you prefer farm-fresh produce, the weekend farmers' markets during warmer months are a treasure trove of local goods. Per RentCafe, overall grocery costs in the region are 1% lower than the national average. 

Dining out is where this metro really shines, boasting a foodie scene that caters to every taste and price point. The North Loop in Minneapolis is a hot spot for trendy, chef-driven restaurants, while St. Paul’s Grand Avenue offers a cozy mix of cafes and neighborhood gems. Whether you’re grabbing tacos from a food truck or savoring a multi-course fine dining experience, there’s plenty here to satisfy your cravings without overspending. According to Numbeo® (February 2025), you can grab an inexpensive meal for around $19 or splurge on a three-course dinner for two, which could cost about $90. 

Transportation Options and Fuel Costs in Minneapolis-St. Paul

Getting around the Twin Cities is refreshingly versatile. Gas prices are typically in line with the national average—AAA® finds a gallon of regular unleaded averages $3.02 as of February 2025—but snowy winters can drive up car maintenance costs. 

That said, Metro Transit’s buses and light rail provide a reliable and affordable option for commuters, with fares for adults starting at $2 and reduced fees for seniors and children. Minneapolis’s love affair with cycling is showcased in its extensive network of bike paths, like the iconic Midtown Greenway. And for those leaning toward more eco-friendly commutes, options like electric scooters are available. The Twin Cities make it easy to get from point A to point B, no matter your transportation preference.

Healthcare and Insurance Costs in Minneapolis-St. Paul

Healthcare costs in the Twin Cities are generally consistent with national averages but are about 7% lower than the state average per RentCafe as of September 2024. Plus, residents benefit from exceptional access to quality care. With reputable networks like Mayo Clinic Health System and Allina Health offering services ranging from general medicine to cutting-edge specialty care, you’re in good hands. 

For health insurance, ValuePenguin® finds monthly premiums average $451 in Minnesota. While medical costs vary based on your provider and insurance plan, they’re well-matched by the region’s emphasis on wellness and preventative care. It's the type of healthcare environment that puts both your health and budget in a good spot.

Utilities, Internet, and Phone Expenses in Minneapolis-St. Paul

Utilities in the Twin Cities are fairly predictable, though winters can hike up heating costs. Overall, these expenses are about 5% lower than the national average, according to RentCafe, with energy bills running about $183 monthly as of September 2024. Reliable internet options are abundant; plan to spend $50 to $80 a month for high-speed connections from companies like Xfinity® or CenturyLink®. Meanwhile, phone plans are competitively priced, with affordable unlimited data options easy to find.

Tax Rates in the Minneapolis-St. Paul Area

Minnesota may lean toward the higher side for taxes, but it balances this with excellent public services. Per the Tax Foundation’s 2025 data, the state income tax ranges from 5.35% to 9.85%, depending on your earnings, while the combined state and local sales tax is 8.04%. Property tax rates are around 0.98%, aligning with the national average. To ease the burden for homeowners, the state offers property tax refunds and credits for those who qualify. While taxes are an extra cost, residents here benefit from quality education, infrastructure, and community programming.

Recreation Costs in Minneapolis-St. Paul, Minnesota

Outdoor enthusiasts and culture buffs alike find plenty to love in the Twin Cities—and it doesn’t have to break the bank. From kayaking on Lake Harriet to biking the Chain of Lakes trails, many outdoor attractions are free or low-cost. Cultural outings, too, are reasonably priced compared to other big cities. Whether it’s catching a show at the Guthrie Theater, where tickets may start as low as $34, or a concert at First Avenue, the arts are refreshingly accessible. Add in unique offerings like the Mall of America’s indoor amusement park and seasonal festivals, and you’ve got something for every budget.

Average Salary in Minneapolis-St. Paul, MN

Earnings in the Twin Cities outpace the national average, thanks to a solid economy and diverse job market, with an average salary of $67K annually, according to ZipRecruiter® as of January 2025. Industries like healthcare, tech, manufacturing, and finance dominate, with major employers, such as 3M®, UnitedHealth Group®, and Target® calling the area home. The growing tech scene brings competitive companies in software development and IT, while the low unemployment rate promotes steady wage growth. Combine this with moderate living costs, and Minneapolis-St. Paul becomes a magnet for professionals seeking opportunity and balance.

Minneapolis-St. Paul Cost of Living Comparison

With an overall cost of living 6% lower than the national average compared to other major metros like Chicago (14% higher per RentCafe as of September 2024) or Denver (10% higher), Minneapolis-St. Paul often comes out ahead in affordability.  

In this metro region, housing costs are competitive without sacrificing quality, and transportation, groceries, and recreation all lean toward budget-friendliness. This metro offers a sweet spot for those who want the perks of urban living without the jaw-dropping price tags of coastal cities.

Average Cost of New Construction Homes in Minneapolis-St. Paul by Neighborhood

Building a new construction home in the Minneapolis-St. Paul area is an opportunity to create the perfect space tailored to your needs in a region buzzing with appeal. With competitive pricing typically ranging from $150 to $250 per square foot, according to Houzeo®.com for 2025, it’s easier than you might think to design a home that blends quality with affordability. Homes here often feature energy-efficient designs, open-concept layouts, and stylish finishes that match today’s modern lifestyles. The Twin Cities offer so much to love—with a strong economy, quality schools, and beautiful parks and green spaces, it’s no wonder households of all kinds are drawn to this area. 

Highland Park

Highland Park in St. Paul is the kind of neighborhood that makes you feel right at home as soon as you arrive. Its tree-lined streets offer a classic charm, while the mix of local shops, restaurants, and cozy coffee spots gives it an undeniably modern energy. You can grab a latte from a corner café and meander to one of the nearby parks for a little fresh air. Speaking of parks, the trails along the Mississippi River are a treasure for outdoor enthusiasts, perfect for morning jogs or leisurely bike rides. Add in the quality schools, and it’s easy to see why locals love it here. Whether you’re raising kids or just looking for a dynamic, welcoming spot, Highland Park has a way of feeling like home.

According to NewHomeSource®, the typical price for a new construction home in St. Paul is in the upper $600Ks as of December 2024. Explore our selection of new construction homes in St. Paul, MN, with prices beginning in the low $600Ks.

Woodbury

Woodbury combines the best of both worlds—sprawling green spaces and all the modern conveniences you could ask for. Miles of trails wind through scenic parks like Colby Lake and Powers Lake, perfect for everything from bike rides to peaceful walks. The city boasts quality schools, while its restaurants, cafés, and shopping hot spots, like Woodbury Lakes, make it easy to keep busy and entertained. Whether you’re admiring nature or indulging in a little retail therapy, Woodbury’s warm, inviting vibe helps make it a place you’ll never want to leave.

The average price for a new build home in Woodbury is in the lower $500Ks, based on NewHomeSource December 2024 estimates. Discover our available new construction homes in Woodbury, MN, with starting prices in the high $300Ks.

Rosemount

Rosemount is one of those cities that charms you quietly but undeniably. It has a small-town feel paired with conveniences that make everyday life a breeze. Parks like Central Park and Schwarz Pond Park provide the perfect backdrop for picnics, fishing, and outdoor adventures. With quality schools, fun activities for all ages, and a growing number of restaurants and local shops, Rosemount offers something for everyone. Whether you’re exploring community trails or enjoying a neighborhood event, Rosemount gives you the space to slow down and enjoy all the comforts of home with the perks of city living nearby.

As of December 2024, NewHomeSource reports that new construction homes in Rosemount generally average in the upper $400Ks. Take a look at our listings of new construction homes in Rosemount, MN, starting in the upper $300Ks.

Lakeville

If you’re looking for a city that feels like it was designed for building a life, Lakeville has you covered. The community here is warm and tight-knit, with plenty of events that bring neighbors together and parks like Antlers Park and Ritter Farm Park that help make it an outdoor lover’s paradise. Whether you’re hiking, picnicking, or just spending a lazy afternoon by the water, Lakeville’s natural beauty sets it apart. The downtown area offers small-town charm alongside great restaurants and shopping options, making it the perfect balance of quaint and convenient. It’s simply a place that makes you feel like you belong.

For Lakeville, new homes typically cost around the mid $500Ks, according to NewHomeSource as of December 2024. Browse our collection of new construction homes in Lakeville, MN, with entry-level prices in the higher $300Ks.

Maple Grove

Last but certainly not least, Maple Grove is a shining example of suburban life done right. It offers something for everyone, from quality schools to an amazing array of parks and trails. Elm Creek Park Reserve stands out with its opportunities for summer fun and winter recreation, making it a year-round destination for outdoor enthusiasts. Love shopping? The Shoppes at Arbor Lakes combine big-name stores with charming boutiques for a shopping experience that feels just right. Whether you have a growing household or are looking for a fresh start, Maple Grove’s perfect blend of convenience, greenery, and community spirit makes it an ideal place to call home.

Homes in Maple Grove average in the upper $500Ks, as noted by NewHomeSource for December 2024. Check out our array of new construction homes in Maple Grove, MN, with starting prices in the upper $300Ks.

Cost of Living in Minneapolis, MN, Conclusion

Living in Minneapolis-St. Paul is all about balance. The Twin Cities deliver an enviable mix of urban energy, natural beauty, and affordability. Housing is varied, transportation is versatile, and the food and recreation scenes make it easy to savor life without stressing over your budget. Add in a thriving economy, and it’s no surprise the area consistently ranks among the best places to live. Whether you’re drawn to the arts, the lakes, or the incredible sense of community, Minneapolis-St. Paul is a place where your quality of life truly shines. If you’re ready to call the Twin Cities home, they’re ready to welcome you.

Explore new construction homes in the Twin Cities, MN, today, or browse more Pulte® blogs. 

Written By: PJ Cushing, Director of Marketing for PulteGroup Minnesota and Resident of St. Paul

Last Updated: 6/5/2025