Cost of Living in Minneapolis, MN 2023

There's no denying that Minneapolis is a city with tons to offer. As home to major sports teams, an incredible art scene, and the best park system in the US, the City of Lakes is a great place to call home.

But is moving to Minneapolis right for you? Most importantly, can you afford to live in Minneapolis?

If you're not sure whether you’re financially prepared to live in Minneapolis, don't worry! This guide will break down everything you need to know about the cost of living in Minneapolis. Let's dive in!

What Is the Cost of Living in Minneapolis?

Minneapolis is considered a major city of Minnesota, making up the “Twin Cities” with neighbor St. Paul. The average cost of living in Minneapolis is 5% higher than the national average.

Be sure to remember these figures provide an average across the popular city. After all, the cost of living can vary drastically.

Highest Cost of Living in Minneapolis

The Minneapolis suburb with the highest cost of living is Edina. The average cost of living in Edina is 27.6% higher than the national average.

Lowest Cost of Living in Minneapolis

On the opposite end of the spectrum you have Hale, a small suburb on the southern edge of the city. The average cost of living in Hale is 17.6% lower than the national average.

Minneapolis Housing Costs

The current median rate for a one-bedroom apartment in Minneapolis sits at $964, while the median cost for a two-bedroom unit is $1,246. While rent prices are on the rise, the city has only seen a 0.4% increase, year-over-year.

Keep an eye out for rent specials in Minneapolis, which are becoming increasingly common.

Learn more about average rent prices in Minneapolis.

Those looking to purchase a home will also find similar trends. The current median home value in Minneapolis is $330,700, down 4.3% year-over-year.

Minneapolis Food Costs

According to data pulled from the MIT's living wage data tool, the monthly food costs for a single individual under the age of 51 is $285. For two individuals, that cost rises to $522.

Data from Numbeo shows that a meal at an inexpensive restaurant for one would come to just under $20. However, if you want to enjoy a meal with someone else at a mid-range restaurant, expect to pay $67 plus tip for a three-course meal.

Minneapolis Healthcare Costs

Data suggests that the out-of-pocket healthcare premium cost for individuals under the age of 51 is $146 monthly. For those over the age of 51, that cost rises to $212.

Low-income individuals and families can look to Minnesota Health Care Programs for affordable health insurance options. This program offers free or low-cost care in which individuals may pay a small portion of expenses or a copay.

For example, the MinnesotaCare program requires individuals over the age of 21 to pay a $75 copay for ER visits and a $25 copay for eyeglasses.

Minneapolis Transportation

You'll spend $5,305 on transportation if you're a single adult. That cost rises to $14,456 if you're a family of four. There are ways to save on transportation around Minneapolis, especially if you take public transportation.

A light rail system and other typical modes of transportation such as buses and taxis make up the public transportation options offered through Minneapolis Metro Transit. Bus fares cost $2.00 to $3.25 depending on the time of day.

However, Minneapolis has gone above and beyond by offering residents a plethora of transportation options. Of course, popular ride-sharing options like Uber and Lyft are available. Zipcar users can simply rent a nearby car for the day.

For those who prefer using their own steam to get around, the Nice Ride bike-sharing system with e-bikes and scooters offers options to get around at the low price of $2 for a single ride. Designated bike lanes run throughout the city, which is known for its walk- and ride-ability.

If you're getting around in your own vehicle, expect to pay parking fees when you arrive downtown.

Minneapolis Utilities

Utility costs for a Minneapolis apartment unit can vary greatly. However, based on data collected from renter, the average utility bill in Minneapolis sits at $147.19 per month. That includes water, cooling, heating, garbage, and electricity.

Minnesota is known for its very cold winters. For most individuals, this just means accounting for higher costs during the colder months. Be sure to ask about energy efficiency before signing a lease agreement to avoid huge bills in the winter.

Estimating utility costs can be challenging, as these costs can depend on a few factors. Those factors include individual preferences, whether the unit has been upgraded to be energy-efficient, and yearly climate. In short, there are a host of factors that you should consider before trying to come up with a number.

Fitness and Entertainment

Enjoying all the things that Minneapolis has to offer means exploring fitness and entertainment options in the Twin Cities. It's important to know how these costs will affect your wallet in the long run.

Here's a breakdown of Minneapolis fitness and entertainment costs to consider.

Fitness

The average cost of a single gym adult membership in Minneapolis is just over $69.38. For a fully equipped gym, a pool, and other amenities, the YMCA offers an adult membership for $30 and a $50 enrollment fee.

That said, it’d be a mistake to underutilize the comprehensive parks system that spans the city. Whether you’re looking to take an outdoor run braving the snow in the cold months or want to take a leisurely bike ride by the water, there is something for everyone. Better yet, it's completely free.

Sports

For any sports fans, Minneapolis is a dream city. With major basketball, baseball, and football teams, fans have their pick of the lot. Ticket prices vary greatly between these sports. Here's a quick breakdown of the average ticket prices for each team:

• Minnesota Lynx: $101
• Minnesota Timberwolves: $58
• Minnesota Twins: $32.68
• Minnesota Vikings: $108.79

Some Minneapolis teams have been consistent performers over the past couple of years, while others on the rise. There's a lot to look forward to in Minneapolis sports in the next few years.

Shopping

A shoppers paradise? A family entertainment station? A place to get a good bite to eat? The Mall of America is all of this and more.

As the largest mall in the country and among the biggest in the world, there’s no shortage of activities to do at the mall. These activities include visiting the Nickelodeon Universe, spending a day at the aquarium, or catching a new flick at the movie theater.

However, shoppers are going to get the most bang for their buck when they visit the mall. Housing over 520 stores, the mall is the place to find anything from the newest tech to gorgeous stationery. Whatever’s on your wishlist, you'll certainly find it there.

Minnesota State Taxes

Taxes can be hard to calculate. But DEED estimates that a single individual will pay up to $399 in taxes monthly based on Minnesota’s 6.875% state sales tax.

Other Expenses to Consider in Minneapolis

When it comes to making the move to a new city, it pays (quite literally) to know exactly what you should expect to pay in the so-called "hidden costs" of Minneapolis.

Though these costs aren't a secret, people commonly miss them when budgeting. They can leave people scrambling to cover the unexpected costs.

Here are some other expenses to consider in Minneapolis.

• Childcare: Raising a family can be tough on your bank account. This is largely due to childcare costs, which in Minneapolis can be as much as $1,200 per month for full-day private daycare.
• Internet and Phone Service: Both are now considered basic living necessities. On average, the cost of internet service alone is around $60. However, that’ll increase when you get better service.

What Salary Do I Need to Live in Minneapolis?

The established rule of thumb is to follow the 30% rule. This rule states that an individual shouldn’t pay more than 30% of their pre-tax income toward housing costs.

The median rent for a one-bedroom apartment in Minneapolis is $964. This means that an individual should make at least $3,213 monthly or $38,560 annually to live comfortably in Minneapolis.

Keep in mind, this is simply a rule of thumb. If you're looking to cut costs, a studio apartment or a roommate can help you save big on an awesome apartment. Just make sure you put in the work to find a great roommate.

Final Thoughts

Minneapolis is a genuinely great city with so much to love. From the park system to the entertainment opportunities, there's truly something for everyone. That's why the city is home to such a diverse group of residents.

If you want to join that group, you'll have to do your due diligence. That means ensuring that you can afford to live in the city comfortably. In short, you'll need to ensure that your budget is airtight.

Ready to find your next home in Minneapolis? Start your apartment search using our quiz!

FAQs: What to Know About the Cost of Living in Minneapolis 2023

How expensive is an apartment in Minneapolis?

A one-bedroom apartment in Minneapolis costs $964. If you want more space, a two bedroom apartment in Minneapolis costs $1,246.

What is the cheapest rent in Minneapolis?

The cheapest rent in Minneapolis is a one-bedroom apartment, with an average rent of $964.

How expensive is it to live in Minneapolis?

In Minneapolis, rent averages $964 per month for a one-bedroom apartment. Monthly food costs run $285 for an individual or $839 for a family of four. An inexpensive restaurant costs around $20, and a meal at a mid-range restaurant for two costs $67 plus a tip for a three-course meal.

How far is Minneapolis from Seattle?

Minneapolis to Seattle is 1,656 miles and takes about 24-hours to drive. It takes about 2 hours and 45 minutes to fly from Minneapolis to Seattle.

How far is Minneapolis from Chicago?

Driving from Minneapolis to Chicago is 409 miles and takes just over 6 hours. Amtrack also runs from Minneapolis to Chicago and takes about eight hours.

What is the population of Minneapolis?

According to the U.S. Census Bureau, there are 425,336 people living in Minneapolis. The population of Minnesota is 5,717,184.

What is a good salary in Minneapolis?

To comfortably live in a one-bedroom apartment in Minneapolis, you should earn at least $38,560 a year. According to the U.S. Census Bureau, the median income in Minneapolis is $70,099, giving a little extra room in your budget.