Minnesota is one of the best places to live in the United States. Minnesota has the tenth-best natural resources and ninth-best infrastructure in the United States. But if you are thinking of moving to this state, you should first consider the cost of living in Minnesota and whether you can afford it.
Knowing the cost of living in Minnesota will help you decide if this is the place you should move to. In this article, we will dive deeper into what is a good salary to earn in this state and the average rent in Minnesota. We will also conduct a salary comparison by city to help you find the best area to live.
What to Know Before Moving to Minnesota
Before you decide to move to Minnesota, consider the standard of living you would like to have when you move there. To begin, you should learn about the local culture, which includes religion, food, and other aspects. Cultural understanding will help you interact with others better. There are also many Christian denominations in Minnesota, and Roman Catholicism is the dominant religion in this state.
Another important factor you should consider is the unemployment rate, which will help you determine the health of Minnesota’s economy. Minnesota had a 2.0 percent unemployment rate as of May 2022. In terms of the quality of its public schools, Minnesota has the 17th-best education system in the United States according to US News & World Report. Minnesota also experiences cold winters, snowy weather, and windy autumns and springs.
What Is the Cost of Living in Minnesota?
Minnesota’s average cost of living is $44,403 according to the Bureau of Economic Analysis. Categories of consumer expenditures include food, transportation, healthcare, housing, taxes, and other necessities. Minnesota’s average family size is three people. Family size affects the annual cost of living because the larger the family, the higher the monthly expenses.
How Is Cost of Living Calculated?
A person’s or a family’s cost of living can be calculated by determining the price range of commodities, services, and other essentials. Based on the prices, the average cost may be estimated by calculating how much money would be spent on such necessities every year.
This data is gathered for each location, allowing you to compare the cost differences of several areas or states. You can also use any free cost of living calculator available on the Internet. This type of tool can help you estimate your expenditures when you move to another city or state.
What Contributes to Cost of Living in Minnesota?
Average Rent in Minnesota
The average monthly rent in Minnesota is $603 for a one-bedroom apartment. If you’re new to the city, still getting your bearings, and adjusting to a new way of life, the best option is to rent a studio apartment, which can cost around $561. Rental prices tend to fluctuate, so be patient when looking for a place to live.
Average Transportation Costs in Minnesota
Transportation costs can be as high as $4,581 per year for a single person, roughly $381 per month. Gas prices in the state as of July 2022 were $4.70 per gallon. You can use public transportation, such as the light trail and public transit buses, to reduce your transportation expenses. The Metro Transit bus fares range from $2 to $2.50. Metro Transit is the public transportation system that serves Minnesota’s Twin Cities, Minneapolis and St. Paul.
Average Food Costs in Minnesota
Food prices are another important factor affecting the total cost of living in Minnesota. The average food cost in Minnesota is $3,500 per year, which is around $290 per month. Some factors that affect monthly food costs are weather conditions, supply and demand, natural disasters, and disease outbreaks. St. Cloud, Minneapolis, and St. Paul are some of the cities in Minnesota with the highest grocery prices.
Average Healthcare Costs in Minnesota
Minnesota residents spend $1,109 of their own money on medical costs. Medicare insurance is $11,375 per year, medical assistance costs $11,699, MinnesotaCare is $5,551, and private health insurance costs $5,947 per year. Population growth and inflation are factors that greatly affect healthcare spending in Minnesota. In the year 2019, Minnesota’s healthcare spending reached $56.6 billion.
Average Utility Costs in Minnesota
The average utility costs in Minnesota are around $293 per month. This is lower than the national average, which is $328. Moreover, Minnesota residents spend $110 per month on cable and satellite TV and around $109 on monthly mobile phone bills.
Other Expenses to Consider in Minnesota
Aside from the previous major expenses that highly contribute to the cost of living in Minnesota, there are other monthly costs you should consider. These include entertainment costs, parking fees, private and public school costs, and Minnesota income taxes.
The annual cost for private school tuition is $7,121 on average in Minnesota. The better the school quality and school district, the higher the tuition is going to be. Colleges and universities offer scholarships and financial aid for students to cover the cost of private tuition.
Should I Buy or Rent in Minnesota?
To determine if purchasing a house or renting an apartment is better, we need to compare the average home value and the average cost of renting an apartment. The median price for a house in Minnesota is $302,300, and the average fixed rate for a mortgage loan is around 4.3 percent. The average rent in Minnesota is around $1,000. These prices may change over time, so it is always good to check the real estate market before deciding which route to pursue.
Your decision to rent or own a house depends on housing costs and your preferences. Buying a house at the median home price is more expensive than renting an apartment. The typical renter’s insurance policy is also cheaper than a typical one for homeowners, and utility costs are lower. If you can find a way to buy property, however, you will be able to make money on Airbnb by renting out your house. This can improve your financial security.
What Is the Average Salary in Minnesota?
The average annual salary in Minnesota is $60,480 according to the Bureau of Labor Statistics. However, salary ranges depend on job types and the location of your company. Some of the highest-paying cities in Minnesota are Bloomington, Minneapolis, Duluth, and St. Cloud. Each of these places is a beautiful town with a strong sense of community.
Salary Comparison by City in Minnesota
What Is a Good Salary?
A good salary will be higher than the cost of living in Minnesota. The average annual income in Minnesota is $60,480, while the estimated cost of living in the state is $44,403. Many cities, including the ones mentioned above, also offer a much higher salary than the national average. If you decide to move to Minnesota, you should choose a city with a high average salary.
Given the estimated value of the cost of living in Minnesota, you want your median household income to be $40,000 per year or higher. Several tech positions in Minnesota offer competitive salaries and benefits. If you want to become a web developer, software engineer, or data scientist, you can easily earn upwards of $70,000 per year.
Can You Afford the Average Cost of Living in Minnesota?
You can afford the average cost of living in Minnesota if you earn an average income of $40,000 per year. The cost of living data and your skills will help you determine what kind of job you should get if you live in Minnesota or can see yourself moving there. The more qualified you are, the higher your chances of getting a well-paid job.
The factors you should consider when choosing a city in this state are the average rent in Minnesota or the monthly housing costs, the healthcare cost, and utility costs like water and electricity bills. Aside from the cost of living in Minnesota, you should also consider the job opportunities, the weather conditions, the education quality, and the culture.
Cost of Living in Minnesota FAQ
Minnesota is known for its outstanding education system. Some of the best schools in Minnesota are the University of Minnesota, the University of St. Thomas, and St. Catherine University. These schools are among the top universities in the US. There are also accredited online colleges in Minnesota that are worth checking out.
Minnesota is also known for its Twin Cities, Minneapolis and Saint Paul. Each of these is an amazing town with tons of amenities, cool historical buildings, and loads to do.
Yes, Minnesota is a good place to live in terms of cost of living and quality of life. It has one of the lowest poverty rates and unemployment rates in the United States. It also has an excellent education system, an abundance of opportunity, and friendly people. City dwellers who love nature can visit the Gunflint Trail, the North Shore of Lake Superior, Minneopa State Park, Minnehaha Falls, and other nice parks and hiking trails.
The largest companies in Minnesota come from the healthcare, finance, and technology industries. Some of these are Target, Best Buy, US Bank, Medtronic, and UnitedHealth Group.
There are plenty of jobs in demand in Minnesota across industries. Some of these are retail sales workers, customer service representatives, bookkeepers, nurses, and information clerks.
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