Cost of Living in the Twin Cities: What You Need to Know in 2025

Thinking about moving to the Twin Cities? Whether you’re relocating for work, family, or lifestyle, understanding the cost of living in Minneapolis–St. Paul is key. The good news: compared to other major metros, the Twin Cities remain an affordable and high-quality place to call home.

Housing Costs in Minneapolis–St. Paul

Housing is the biggest factor in cost of living. The median home price in the Twin Cities is still lower than in cities like Denver, Seattle, or Chicago.

• South Minneapolis & Lake Nokomis: Bungalows and updated classics range from $300K–$600K.

• Edina & Southwest suburbs: Upscale homes and top schools, often $600K–$1M+.

• Richfield & Bloomington: Affordable family-friendly options, many under $400K.

For renters, expect $1,400–$2,000 for a two-bedroom apartment depending on location and amenities.

Transportation & Commuting

The Twin Cities has one of the best commute times of any metro its size. Gas prices run close to the national average, and parking in downtown Minneapolis is far cheaper than coastal cities. Many residents bike or use light rail, especially near the Nokomis, Longfellow, and downtown corridors.

Groceries & Dining

Groceries in the Twin Cities are slightly below the national average. Local co-ops and farmers markets (like the Nokomis Farmers Market) make fresh food affordable. Dining out is accessible too — from casual spots like Heather’s in South Minneapolis to fine dining in North Loop.

Utilities & Healthcare

Utilities (electricity, heat, water, internet) are very manageable, with most households spending $150–$250/month. Winters increase heating costs, but overall utility expenses stay in line with national averages. Healthcare is a strength here, with world-class hospitals like Mayo and Fairview, while insurance premiums are similar to national averages.

Lifestyle & Recreation

One of the biggest “hidden savings” in the Twin Cities is recreation. Free parks, lakes, and trails — like Lake Nokomis, Minnehaha Creek, and the Chain of Lakes — mean endless activities without spending a fortune. Sports, arts, and culture are strong here too, offering major-league entertainment at reasonable prices.

Bottom Line

The cost of living in Minneapolis–St. Paul is balanced: affordable housing compared to many metros, reasonable everyday expenses, and priceless access to parks and community life. Whether you’re buying your first home in South Minneapolis, upgrading in Edina, or relocating for work, the Twin Cities delivers lifestyle and value.

About the Author

I’m Arne Johansson, a Realtor, builder, and investor based in South Minneapolis. With 300+ homes sold and a background in construction and investing, I help buyers, sellers, and families make smart moves in the Twin Cities market.

📲 Call/text me at 612-423-0202 or email arne.johansson@exprealty.com to learn more about buying or selling in Minneapolis–St. Paul.