Austin vs Minneapolis: cost of living compared
Minneapolis is 8% cheaper than Austin overall. Austin (TX) has no state income tax; MN tops out around 7.05%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Moving between Austin and Minneapolis presents a noticeable shift in overall cost of living. Austin is generally more expensive, driven primarily by its housing market. While some categories are roughly similar, the significant difference in shelter costs makes Austin the pricier option. This overall gap suggests that a household budget will stretch further in Minneapolis compared to Austin.
Housing
Housing is where the cost difference between these two metros is most pronounced. Both buying a home and renting an apartment are considerably more expensive in Austin. Minneapolis offers a more affordable housing landscape, with both median home prices and typical rental costs being substantially lower. This disparity in housing expenses is a major factor for anyone considering a move.
Taxes and everyday costs
Daily expenses vary between the two cities. Minneapolis has a state income tax, which is absent in Texas, impacting take-home pay. Transportation costs are somewhat higher in Austin, though commute times are broadly similar. Food expenses are roughly comparable, but healthcare is a bit more expensive in Minneapolis. Utility costs are also somewhat higher in Austin, contributing to daily spending differences.
Lifestyle trade-offs
Beyond costs, a move involves distinct lifestyle changes. Austin offers a warm climate with hot summers and mild winters, while Minneapolis experiences four distinct seasons, including cold, snowy winters. Austin is known for its vibrant cultural scene and a generally faster pace. Minneapolis, with its extensive park system and urban lakes, offers a different recreational focus and a slightly more relaxed urban feel.
Bottom line
For households weighing a move, the financial implications are clear: Austin generally demands a larger budget, largely due to its significantly higher housing costs. While Minneapolis has a state income tax, its more affordable housing, transportation, and utilities can result in substantial overall savings. Understanding these core differences is crucial for planning your financial future in either metro.
| Measure | Austin, TX | Minneapolis, MN |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 108 |
| Housing index | 132 | 94 |
| Transportation index | 109 | 98 |
| Food index | 102 | 102 |
| Healthcare index | 102 | 105 |
| Utilities index | 112 | 108 |
| Misc index | 102 | 98 |
| Median home price | $498,000 | $328,000 |
| Median 1-bedroom rent | $1,750/mo | $1,450/mo |
| Average commute | 30 min | 27 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Minneapolis home with the True Cost Calculator.