The cost of living in Minneapolis is on the rise, but it’s still affordable given the big city amenities it offers residents. More than 420,000 people call this Midwest city home.
Right now, the average rent in Minneapolis for a one-bedroom apartment is 1.88 percent higher on average than in Chicago. While the cost of living is 5.1 percent above the national average, this is quickly changing as housing demand increases with newcomers.
Photo source: Meet Minneapolis
Housing costs in Minneapolis
Minneapolis’ housing market — whether you’re renting or buying — has remained relatively steady over the past year. The average rent in Minneapolis has gone up 0.2 percent to $1,444 per month for a one-bedroom in the past year. This average rent fluctuates dramatically per neighborhood and amenities offered.
Living in Cedar Isles – Dean and North Loop is among the most expensive. The average rent for a one-bedroom in Cedar Isles – Dean is $2,759 while living in North Loop is in the $1,800 a month range. Neighborhoods closer to the average range in Minneapolis include Corcoran, Loring Park and Lyn-Lake.
If you’re looking to stay within Minneapolis and save a little on rent, you can find an apartment in Como and Elwells for about $900 a month on average or South St. Paul for $851 per month.
The average home price in Minneapolis at this time is $325,000. However, this is mainly dependent on the neighborhood. As of April 2021, home prices are up 7.6 percent compared to last year, according to Redfin. Most homes sell in fewer than 12 days.
Photo source: Meet Minneapolis
Food costs in Minneapolis
From its walleye to Scandinavian dishes, Minneapolis is known for everything from its comfort food and food trucks to fine dining restaurants.
Minneapolis’s cost of living for groceries is 2.6 percent above the national average. Expect to see eggs for $1.81, ground beef for $4.40 a pound and bread for $2.31.
Dining out at an inexpensive restaurant is about $16 a person while a pint of domestic beer is around $6, not including tip.
Utility costs in Minneapolis
Minneapolis tends to have warm and wet summers while winters are freezing and windy with snowy days and nights.
Minneapolis’ utility prices are 2.8 percent below the national average. You can expect your total energy costs of around $160.63 each month.
For the internet, the city has a limited amount of providers, but your bill will hover around $61.97 a month.
The state of Minnesota’s electric and natural gas utilities offer some rebates and incentives for customers if homeowners or renters want to make their spaces more energy-efficient. The Weatherization Assistance Program (WAP) provides assistance for income-qualified households with free home energy upgrades for homeowners and renters.
Photo source: Meet Minneapolis
Transportation costs in Minneapolis
Minneapolis ranks No. 77 as the most congested city in the United States. Drivers lose about nine hours a year and $133.71 sitting in traffic. The average commute is 27 minutes, according to a recent study. If you have to park, expect to spend $7.36 for a two-hour parking spot, on average.
Luckily, it’s easy to get around Minneapolis without a car. The city is in a grid layout and several buses crisscross the city. The Minneapolis METRO Light Rail offers 43 stops, including the Mall of America and terminals 1 and 2 of the MSP Airport. Buses offer even more coverage, with over 120 bus routes in the Twin Cities and surrounding area.
Its Nice Ride program is a fun, easy and affordable way to get around on two wheels. For just $2.50 a ride or $89 a year membership, more than 3,000 bikes or scooters are available at 400 stations.
Minneapolis‘ walk score is 75 but its bike score is a healthy 83 thanks to many neighborhoods with great paths and bike lanes. Its transit score is 57.
All in all, the cost of living for transportation in Minneapolis is right in line with the national average.
Healthcare costs in Minneapolis
Abbott Northwestern Hospital is nationally ranked in two adult specialties. As a teaching hospital, it’s also rated high performing in six adult specialties and 10 procedures and conditions, according to U.S. News and World Report.
Minneapolis healthcare costs are 2.2 percent higher than the national average.
While it’s tough to share an average for overall healthcare since each person’s healthcare needs will be different, a regular doctor visit costs $147.85 on average while a prescription drug can set you back $437.87 on average (without insurance of some kind).
You can pick up ibuprofen at your local pharmacy for $11.90 on average.
Goods and services costs in Minneapolis
Beyond essential bills, Minnesotans can expect to spend 11.2 percent above the national average on goods and services across different categories.
While many neighborhoods throughout Minneapolis are pet-friendly, expect to spend around $65.82 on average for vet services.
Enjoy practicing yoga? A pop-in yoga class is around $22.57, although you can save money by buying in bulk or becoming a member.
There are also plenty of exercise facilities throughout the city and some apartment buildings offer a fitness facility on their properties as an amenity.
Taxes in Minneapolis
The Minnesota state sales tax rate is currently 6.875 percent and depending on local municipalities, the total tax rate gets as high as 8.375 percent. In Minneapolis, the sales tax rate is 8.025 percent, broken down as follows: Minnesota State: 6.875 percent; Hennepin County: 0.150 percent; Minneapolis: 0.500 percent; Hennepin County Transit: 0.500 percent.
For example, a laptop computer on sale for $1,000 will cost 1080.25 with taxes.
Minnesota’s income tax is a graduated tax with four rates currently: 5.35 percent, 7.05 percent, 7.85 percent and 9.85 percent. Rates apply to income brackets — varying by filing status.
How much do I need to earn to live in Minneapolis?
Most financial advisors recommend keeping your rent payment at 30 percent of your gross income or less. You would need to make at least $57,800 annually to afford a one-bedroom apartment in Minneapolis. Currently, a one-bedroom costs $1,445 per month on average.
For perspective, an average Minneapolis resident makes around $71,000 a year. Want to know where you stand with your current budget? Use our rent calculator to get a high view of how it would change after moving to Minneapolis.
Living in Minneapolis
Minneapolis residents enjoy living in an affordable city and having easy access to nature and the outdoors as well as great food, a vibrant indie music scene and big-city amenities.
If Minneapolis is calling your name, you can find great apartments for rent or homes to buy here today.
Cost of living information comes from The Council for Community and Economic Research.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments in April 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Source: rent.com