Marshall and Hibbing are some of the best places to live in Minnesota. The state ranked as the 5th best state to live in 2024 based on affordability, healthcare, and overall economic structure. Plus, the housing is 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. Certain cities are standing out more than others. Let’s explore which ones lead the pack.
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7 Best Places to Live in Minnesota in 2025
Here’s our ranking of the best cities to live in Minnesota. We’ve evaluated each city based on community well-being, affordability, and housing trends. If you’re considering Minnesota real estate, these locations offer strong home values and a great quality of life.
| # City | Median House Price | Median Income | Cost of living | Liveability Score | Crime Score | Improvement in Ranking |
|---|---|---|---|---|---|---|
| 1. Marshall | $232K | $74K | 5.4% ⬇️ | 82 | 51 | 5 ⬆️ |
| 2. Hibbing | $157K | $79K | 4.5% ⬆️ | 77 | 61 | 1 ⬇️ |
| 3. Austin | $177K | $80K | 9.8% ⬆️ | 83 | 21 | 0 |
| 4. Albert Lea | $162K | $74K | 9.8% ⬆️ | 71 | 16 | 2 ⬇️ |
| 5. St. Paul | $288K | $91K | 13.5% ⬆️ | 81 | 6 | 0 |
| 6. Rochester | $328K | $109K | 10.7% ⬆️ | 76 | 24 | 1 ⬆️ |
| 7. St. Cloud | $249K | $76K | 2.2% ⬆️ | 83 | 5 | 3 ⬇️ |
1. Marshall
- Median House Price: $232K
- Cost of Living: 5% ⬇️than the national average.
- Crime Score: Safer than 51% of U.S. cities.
- Unemployment: 3.1%
- Walkability Score: 70; Very walkable.
The median home price in Marshall is $232K. The average rent for a 2-bedroom apartment in the city is $850, which is quite affordable. Moreover, the cost of living is 5.4% 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. Which makes it one of the best places to live in Minnesota for families.
2. Hibbing
- Median House Price: $147K
- Cost of Living: 4.5% ⬆️than the national average.
- Crime Score: Safer than 61% of U.S. cities.
- Unemployment: 4.9%
- Walkability Score: 25; Car-dependent city.
Hibbing is a perfect option for those moving on a budget. The median home price is $147K, which is quite affordable. Moreover, the cost of living is 4.5% higher than the US average. This makes it one of the best towns to live in Minnesota for retirees.
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.
3. Austin
- Median House Price: $177K
- Cost of Living: 9.8% ⬆️than the national average.
- Crime Score: Safer than 21% of U.S. cities.
- Unemployment: 3.5%
- Walkability Score: 56; Somewhat walkable.
The median home price in Austin is $177K. The cost of living in the city is 9.8% higher than the state average. Moreover, Austin has a stable job market with an unemployment rate of 1.70%, which is far less than the national average.
Moreover, this economy added 50,900 new jobs in 2023. Walmart, Mayo Clinic, and Hormel Foods are the major employers. An abundance of opportunities and affordable housing makes it one of the best places to live in Minnesota for young adults.
4. Albert Lea
- Median House Price: $162K
- Cost of Living: 9.8% ⬆️than the national average.
- Crime Score: Safer than 16% of U.S. cities.
- Unemployment: 5.1%
- Walkability Score: 83; Very walkable.
The median home price in Albert Lea is $162K. The city’s cost of living is 9.8% higher than the national average. The city’s crime rate is 15% lower than the state average. This makes it 1st choice for people who want peaceful and quiet living experience.
Albert Lea is considered one of the safest places in the state. Moreover, the city scores an A+ in the air quality metrics. Affordable housing, low cost of living, and a good crime safety rating make it one of the best places to live in minnesota for retirees.
5. St. Paul
- Median House Price: $288K
- Cost of Living: 13.5%⬆️ than the national average.
- Crime Score: Safer than 6% of U.S. cities.
- Unemployment: 5%
- Walkability Score: 89; Very walkable.
The median home price in St. Paul is $288K. The cost of living in the city is 13.5% higher 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. With its top notch education and booming job market it is one of the best cities to live in Minnesota for young adults.
6. Rochester
- Median House Price: $328K
- Cost of Living: 10.7% ⬆️ than the national average.
- Crime Score: Safer than 24% of U.S. cities.
- Unemployment: 3.7%
- Walkability Score: 89; Very walkable.
The median home price in Rochester is $328K. The cost of living in the city is 10.7% higher 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. Which makes it one of the best places to live in Minnesota.
7. St. Cloud
- Median House Price: $249K
- Cost of Living: 2.2%⬆️ than the national average.
- Crime Score: Safer than 5% of U.S. cities.
- Unemployment: 7.1%
- Walkability Score: 34; Car-dependent city.
The median home price in St. Cloud is $249K. 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. making it ideal location for young adults and students.
The cost of housing in St. Cloud is 2.2% higher 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.
Best Places to Live in Minnesota for Young Adults
We have researched the best places to live in Minnesota for single families, young professionals, and retirees. The cities are ranked on parameters like education, employment opportunities, and healthcare facilities.
| Demographic | #1 | #2 |
| Single Families | Marshall | Austin |
| Young Professionals | Rochester | St. Paul |
| Retirees | Albert Lea | Hibbing |
Is Minnesota a Good Place to Live?
Minnesota ranks among the best places to live in the US for its job growth, affordability, and top-rated education. Minnesota’s 5.7M population is set to grow 27% by 2030—backed by the nation’s best infrastructure, it’s clearly built for the future.
Whether you’re drawn to the urban energy of St. Paul or the medical hub of Rochester, Minnesota offers diverse lifestyles. Explore listings, compare prices, and make offers online with just a few clicks on Houzeo, Minnesota’s best home buying website.
Research Methodology
This study ranks cities using a weighted average scoring model based on eight parameters. We’ve linked the resources used in our study of the best places to live in MN:
- Zillow[1]: Median House Price
- Zipatlas[2]: Population, Median Income, Expenses, Unemployment Rate
- Salary[3]: Cost of Living
- Areavibes[4]: Livability Score
- Neighborhoodscout[5]: Crime Index Score
The total score for each city combines a weighted score for its rank. Here’s the weightage: population (10%), home price (20%), income (20%), expenses (15%), unemployment (15%), cost of living (10%), crime index (5%), and well-being (5%).
Additionally, we have listed the best areas to live in Minnesota for varying demographics. These include the best places to live for families, young adults, and retirees.
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