Is Minnesota Now One of the Most Affordable States in America? It Depends.

Is Minnesota actually a budget-friendly place to live? With prices for, well, everything going up (housing, groceries, gas), it’s a fair question.

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Let’s take a look at the state from a couple of different angles and see if the Land of 10,000 is really one of the most affordable states in the U.S. (Spoiler: It kinda depends on who you ask and how you look at it.)

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Minnesota’s Affordability Ranking: The Good News

According to a study from GoBankingRates, Minnesota ranks #4 on the list of most affordable states for middle-class families. That’s pretty solid! Here’s what they say:

• Average home value: $336,241
• Annual cost of living: $57,585
• Median middle-class income: $87,556
• Leftover savings after expenses: $29,971

Not too shabby, right? Compared to other Midwestern states, we’re looking pretty good. But before you start celebrating, there’s another side to the story.

But Wait… The Other Numbers Tell a Different Story

Some other reports, like this one from Minnesota Now using data from MIT’s Living Wage Calculator, suggest that Minnesota is actually more expensive than the national average.

Here’s the kicker: The average cost for a family of four in the North Star State is $108,327 per year, which is 6.71% higher than the national average of $101,514.

And if you live in one of Minnesota’s big metro areas, buckle up. The annual expenses for a family of four climb well above the $100K mark.

• Twin Cities metro: $127,391
• Rochester metro: $126,858
• Duluth metro: $103,625
• St. Cloud metro: $117,247
• Mankato metro: $105,867

So, yeah, while Minnesota has a lot going for it, it’s not exactly a cheap place to live.

Why Minnesota Still Gets a Thumbs Up for Affordability

Okay, so if Minnesota isn’t exactly cheap, why did it rank so high in the GoBankingRates study? Here are a few reasons why:

With a median middle-class income of $87,556, Minnesota salaries tend to be higher than in a lot of other states. That helps balance out the cost of living.

In Minnesota, we get more bang for our bucks. Great public schools, solid healthcare, and a strong economy make the cost of living feel more worth it compared to other places.

Minnesota also currently has a solid job market, ranked 3rd best in the country, especially in industries like healthcare, technology, and manufacturing. More jobs = more financial stability.

So… Is Minnesota Affordable or Not?

Honestly, it depends on how you look at it. If you’re only looking at expenses, Minnesota is more expensive than the national average. But if you take income into account, it’s actually one of the best places for middle-class families to live comfortably without feeling completely squeezed.

If you’re earning a decent paycheck, Minnesota offers a good balance of income and expenses. But if you’re on a tighter budget, it might feel a little pricey.

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Minnesota might not be the absolute cheapest place to live, but it appears to still be one of the best bang-for-your-buck states. So if you’re looking for a place that offers financial stability, job opportunities, and a great quality of life, Minnesota is still a pretty great option. Just maybe don’t expect your grocery bill to magically shrink anytime soon.