Minnesota is ranked as the 5th best state to live in 2024. The rankings are based on affordability, healthcare, and overall economic structure. Also, the housing costs in the state are 14% cheaper than the national average.
Apart from affordable living, the North Star State offers excellent job opportunities. On average, the state has created 9,500 new jobs every month in the past year.
3 Reasons to Live in Minnesota 🏔️
- Flourishing Job Market: Minnesota has one of the most stable job markets in the country. More than 80% of the people aged between 25 to 54 are employed in the state.
- Quality Education: Minnesota is ranked as the 7th best state in the country, in terms of education. Carleton College, Macalaster College, and Olaf College are among the highly rated institutes.
- Excellent Climatic Conditions: Minnesota is one of the few in the country with 4 different seasons. The summer is pleasent, autumn is full of colors, and winter presents a perfect Christmas vibe.
7 Best Places to Live in Minnesota
| # | City | Population | Median Home Price | Monthly Expenses | Unemployment Rate | Community Well-Being Score |
|---|---|---|---|---|---|---|
| 1. | Hibbing | 16,077 | $136,285 | $8,554 | 2.2% | 85/100 |
| 2. | Albert Lea | 18,428 | $141,536 | $7,856 | 1.80% | 70/100 |
| 3. | Austin | 26,225 | $161,273 | $8,187 | 1.70% | 68/100 |
| 4. | St. Cloud | 68,818 | $228,482 | $8,264 | 2.10% | 87/100 |
| 5. | St. Paul | 307,193 | $271,813 | $9,616 | 1.90% | 87/100 |
| 6. | Marshall | 13,641 | $271,813 | $7,446 | 1.40% | 72/100 |
| 7. | Rochester | 121,465 | $304,713 | $10,400 | 1.40% | 85/100 |
1. Hibbing
| Home Value | ⬆️ 6.2% |
| Median Income | $29,803 |
| Monthly Expenses | $8,554 |
| Unemployment Rate | 2.2% |
Hibbing is a perfect option for those moving on a budget. The median home price in the city is $136,285, which is quite affordable. Moreover, the cost of living is 14% lower than the national average.
Hibbing is ideal for young professionals and the job market in the city is projected to grow by 10.68% in the coming decade. It is known for its top-rated education system. The Hibbing Public School District is the largest in Minnesota.
» Homes for Sale in Hibbing, MN: Find your dream home in this beautiful city.
2. Albert Lea
| Home Value | ⬆️ 4.3% |
| Median Income | $28,410 |
| Monthly Expenses | $7,856 |
| Unemployment Rate | 1.80% |
The median home price in Albert Lea is $141,536. The city’s cost of living is 21% less than the national average. Also, Abert Lea has a booming job market, with a monthly average salary range of $3,976.
Albert Lea is considered one of the safest places in the state. The city’s crime rate is 15% lower than the state average. Moreover, the city scores A+ in the air quality metrics.
» Homes for Sale in Albert Lea, MN: View the best properties in Albert Lea online.
3. Austin
| Home Value | ⬆️ 6.2% |
| Median Income | $27,320 |
| Monthly Expenses | $8,187 |
| Unemployment Rate | 1.70% |
The median home price in Austin is $161,273. The cost of living in the city is 16% lower than the state average. Moreover, Austin has a stable job market with an unemployment rate of 1.70%, which is less than the national average.
Austin created 50,900 new jobs in 2023. Walmart, Mayo Clinic, and Hormel Foods are the major employers. Also, the city scores A+ in the air quality metrics.
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4. St. Cloud
| Home Value | ⬆️ 2.7% |
| Median Income | $26,242 |
| Monthly Expenses | $8,264 |
| Unemployment Rate | 2.10% |
The median home price in St. Cloud is $228,482. The average rent for a 916 sq. ft. apartment is $1059. Also, the city is home to the prestigious St. Cloud State University which is ideal for higher education.
The cost of housing in St. Cloud is 2% lower than the state average. Moreover, the city’s job market is projected to grow by 22.78% in the next ten years. Woodcraft, Capital One, Essilor of America, and Grede are some of the major employers.
» Homes for Sale in St. Cloud, MN: View the best luxurious properties for sale in St. Cloud.
5. St. Paul
| Home Value | $271,813 |
| Median Income | $31,435 |
| Monthly Expenses | $9,616 |
| Unemployment Rate | 1.90% |
The median home price in St. Paul is $271,813. The cost of living in the city is 2% lower than the national average. Moreover, the city has a great educational setup. It’s home to the prestigious Macalester University and the University of St. Thomas.
St. Paul is home to big corporations like U.S. Bank, 3M, Best Buy, and Optum. The city’s unemployment rate is 1.90%, decreasing steadily.
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6. Marshall
| Home Value | ⬆️ 0.4% |
| Median Income | $30,564 |
| Monthly Expenses | $7,446 |
| Unemployment Rate | 1.40% |
The median home price in Marshall is $271,813. The average rent for a 2-bedroom apartment in the city is $850, which is quite affordable. Moreover, the cost of living is 22% lower than the national average.
Marshall has a booming job market, with a steady annual growth rate of 15.38%. Over the years, the city’s economy has flourished in sectors like health sciences, transportation, and retail marketing.
» Homes for Sale in Marshall, MN: View thousands of properties for sale in Marshall.
7. Rochester
| Home Value | ⬆️ 2.8% |
| Median Income | $40,247 |
| Monthly Expenses | $10,400 |
| Unemployment Rate | 1.40% |
The median home price in Rochester is $304,713. The cost of living in the city is 1% lower than the national average. However, Rochester is 13.8% cheaper than Minneapolis when it comes to daily expenses.
Rochester is ideal for job seekers, with over 63,000 employees. The city is home to big tech giants like IBM, Spectrum, Crenlo, and Benchmark Corporation.
» Homes for Sale in Rochester, MN: Find the best properties in Rochester.
Best Places to Live in Minnesota for Young Adults
Here are the best cities to live in Minnesota for young adults:
- Minneapolis: The average salary in Minneapolis is $79,000. The job market is projected to increase by 51.22% in the next ten years, higher than the national projection.
- Blaine: The average salary in the city is $68,220. The job market in Blaine is projected to grow by 29% over the next decade.
Bottom Line
Minnesota is one of the best places to live in the US due to its thriving job market and low cost of living. Other things that contribute are its excellent education system and vibrant city life.
The Gopher State’s current population is 5.7 million, projected to increase by 27% by 2030. Moreover, the state is ranked 1st in terms of the best infrastructure in the country.
In some cities, the median home price is around $140,171, whereas in cities like Rochester, it can go up to $304,713. So, you must do your research before you move to Minnesota. To start your home search, browse properties online
» Free Home Value Estimator: Get an estimate of property values with Minnesota’s most accurate home value estimator.
Browse Homes For Sale in Minnesota by Price and Type
Research Methodology
We considered different regions to rank the best places in Minnesota. Comparison criteria for the best cities to live in Minnesota and the information sources are as follows:
- Population: Minnesota Demographics Report [1]
- Median Home Price: Zillow[2] and Redfin[3]
- Median Household Income: United States Census Bureau[4]
- Monthly Expenses: Economic Policy Institute[5]
- Unemployment Rate: US Bureau of Labor Statistics[6]
- Community Well-Being Score: Community Well-Being Index by Sharecare[7]
Additionally, we have listed the good cities to live in Minnesota for varying demographics. These include the best places to live for families, young adults, retirees, and working professionals.
Frequently Asked Questions
Which is the best place to live in Minnesota?
Hibbing is the best place to live in Minnesota. The city's cost of living is low and has a flourishing job market.
Which is the best place to live in Minnesota for retirees?
St. Cloud is the best place to live for retirees. The city has excellent connectivity and great climate.
Which is the cheapest place to live in Minnesota?
Albert Lea is the cheapest place to live in Minnesota. The home prices and cost of living in the city are lowest in the state.
