The median home price in Minnesota is $324,215 which has increased by 1.6% since the last year. The Minnesota housing market has witnessed a 4.2% year-over-year decline in the number of homes listed. With only a 2-month supply left, the tight inventory is expected to drive an increase in the median sale price.
As per our research, home prices are relatively higher in inland cities near St. Cloud, MN. On the other hand, as you move towards the border areas of the North Star state like Moorhead, you can find cheaper housing options.
4 Reasons to live in Minnesota 🦋
- Cheaper Houses: The median home sale price in Minnesota is ~324K. But you can get houses between $142K and $224K in cities like Hibbing, Austin, and Marshall.
- Tax Benefits: Minnesota provides pre-tax benefits for state employees, allowing them to contribute to eligible expenses through different plans.
- Affordable Healthcare: Healthcare in cities mentioned in this blog is up to 19% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than the national average. You can save up to $650 per month in rent.
Cheapest Places to Live in Minnesota in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of the cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Hibbing | $52,881 | $228,540 | 16,052 | 4.8% | 14.2% |
| Albert Lea | $56,347 | $260,848 | 18,396 | 4.4% | 10.8% |
| Fairmont | $56,744 | $280,035 | 10,260 | 2.7% | 13.9% |
| Austin | $61,667 | $281,816 | 26,208 | 2.5% | 14.4% |
| Crookston | $52,557 | $290,423 | 7,323 | 4.9% | 15.3% |
| Worthington | $58,690 | $330,829 | 13,743 | 3.7% | 15.4% |
| Marshall | $60,532 | $356,820 | 13,680 | 2.0% | 16.4% |
7 Cheapest Places to Live in MN
The annual population growth of 7.6% since 2010 is reflective of people’s intention to move to Minnesota. If you’re considering shifting to Minnesota, here are some cities that offer affordable living options:
1. Hibbing
| 🟢 Cost of Living Compared to National Average | 15.3%⬇️ |
| 🏡 Median Home Price | $142,425 |
| 💲 Median Rent | $850 |
| 🌅 Known For | Hibbing Historical Society Museum |
Hibbing is an affordable place to live in Minnesota. Its median house rent ranges from $495 – $1,350. It also offers affordable healthcare which is 13.7% lower than the national average.
Hibbing is recognized as the “Iron Capital of the World,” and has a strong mining industry. However, recently the median household income saw a 5.7% growth. This indicates an increase in job opportunities and financial stability for the city’s residents.
» Homes for Sale in Hibbing, MN: Find your dream home in this city.
2. Albert Lea
| 🟢 Cost of Living Compared to National Average | 25.8%⬇️ |
| 🏡 Median Home Price | $145,263 |
| 💲 Median Rent | $995 |
| 🏞️ Known For | State Park |
Albert Lea is one of the most budget-friendly rental destinations in Minnesota with an average home rent ranging from $400 – $1,395. It also offers affordable grocery which is 6% lower than the national average.
Albert Lea is known for providing excellent quality of life and longevity. The city has embraced the Blue Zones Vitality City Project. This project emphasizes factors contributing to well-being, such as healthy living environments and active lifestyles.
» Homes for Sale in Albert Lea, MN: Browse thousands of property listings in Albert Lea.
3. Fairmont
| 🟢 Cost of Living Compared to National Average | 27.6%⬇️ |
| 🏡 Median Home Price | $155,255 |
| 💲 Median Rent | $850 |
| 🏖️ Known For | U.S. Headquarters of Avery Weigh-Tronix |
With rental costs below the national average, Fairmont stands as one of the most affordable cities to live in Minnesota. The house rent price is between $850 – $2,200.
Fairmont boasts of excellent livability, with residents enjoying a high quality of life. The city ranks 74 out of 100 points due to its low crime rate and advanced educational facilities. This makes it an appealing location for people looking to move to Minnesota.
» Homes for Sale in Fairmont, WA: View all the properties for sale in this city.
4. Austin
| 🟢 Cost of Living Compared to National Average | 23.7%⬇️ |
| 🏡 Median Home Price | $163,757 |
| 💲 Median Rent | $825 |
| 🏖️ Known For | Hormel’s Corporate Headquarters |
Austin offers budget-friendly living with a median rent that is $1,175 lower than the national median. With utility costs being 3.9% lower than the national average, the city stands out as one of the most inexpensive places to live in Minnesota.
Austin’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in America. Moreover, residents enjoy some of Austin’s famous tourist attractions like the Spam Museum and St. Augustine’s Catholic Church.
» Homes for Sale in Austin, MN: Browse through thousands of affordable properties.
5. Crookston
| 🟢 Cost of Living Compared to National Average | 17.2%⬇️ |
| 🏡 Median Home Price | $170,564 |
| 💲 Median Rent | $755 |
| 🎨 Known For | Sugar Beets |
Often referred to as the ‘Rural City,’ Crookston’s cost of living is 14.4% lower than the state average. The utility expenses are 7.3% lower than the national average.
Crookston is home to several educational institutes. The University of Minnesota Crookston and Crookston High School provide higher education opportunities. It also contributes to the city’s cultural and academic vibrancy.
» Homes for Sale in Crookston, MN: Browse through thousands of properties in this flagship city.
6. Worthington
| 🟢 Cost of Living Compared to National Average | 27.6%⬇️ |
| 🏡 Median Home Price | $210,549 |
| 💲 Median Rent | $635 |
| 🏫 Known For | Lake Okabena |
The house rent in Worthington is between $100 – $1,350. With an average household income of $58,690, you can comfortably live in this city.
Worthington is a compelling real estate choice for outdoor enthusiasts seeking affordable living in Minnesota. The annual cost for housing, food, health care, and other essentials for a single adult in Worthington is $36,438.
» Homes for Sale in Worthington, MN: Find a home in one of the cheapest places to live in Minnesota.
7. Marshall
| 🟢 Cost of Living Compared to National Average | 24.3%⬇️ |
| 🏡 Median Home Price | $224,177 |
| 💲 Median Rent | $1,350 |
| 🖼️ Known For | Schwan Food Company |
Marshall is indeed one of the best places to live in Minnesota, with a slight year-over-year median home price decline of 1.7% in December 2023. The annual expenditure on food for an individual amounts to $3,101. This makes it one of the most budget-friendly options across the country.
Marshall is renowned for its stunning natural beauty. The city has a strong connection to agriculture, food production, and bioscience, which are integral to its history, culture, and economy.
» Homes for Sale in Marshall, MN: Get yourself a home in this vibrant town.
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Bottom Line
The cost of living in Minnesota is 3% lower than the national average. Nevertheless, it is still home to some of the most expensive cities in America. However, if you want to shift to Minnesota, you can find affordable housing in cities like Hibbing, Albert Lea, and Crookston.
Cities like Fairmont and Worthington have a slightly expensive cost of living but provide better job opportunities. You must research the city’s home prices and living costs before relocating.
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Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for the population, median household income, poverty rate, and unemployment rate in these cities.
To compile this list of the cheapest areas to live in Minnesota, we have drawn data from the Economic Research Institute, World Population Review, Rent Cafe, and Zillow, Best Places.
Frequently Asked Questions
Where is the cheapest place to live in Minnesota?
The cheapest place to live in Minnesota is Hibbing. It offers one of the most affordable utilities in the state, which is 12.8% lower than the national average.
» 7 Cheapest Places to Live in Minnesota: Find out the other cheapest places to live in Minnesota!
What makes Minnesota the cheapest place to live in?
No, it is not. The median home value is $324,215. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
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