Birmingham vs Minneapolis: cost of living compared
Minneapolis is 38% more expensive than Birmingham overall. State income tax tops out around 5% in AL vs 7.05% in MN.
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
Comparing Birmingham and Minneapolis reveals a significant difference in overall cost of living. Birmingham is noticeably more affordable across the board, with housing being the primary driver of this distinction. While other categories like transportation, food, and healthcare also contribute to the gap, the cost of shelter stands out as the most impactful factor when considering a move between these two metros.
Housing
Housing costs present a stark contrast. Both buying a home and renting an apartment are considerably more expensive in Minneapolis than in Birmingham. Birmingham generally offers a more traditional Southern housing stock, often with more land, while Minneapolis features a mix of historic and modern urban dwellings. Property taxes and insurance costs will also reflect the difference in home values.
Taxes and everyday costs
Daily expenses vary considerably. Beyond housing, Birmingham offers lower costs for transportation, groceries, and healthcare. Utility costs are also more favorable in Alabama. Additionally, Minnesota has a higher state income tax burden compared to Alabama, which will impact take-home pay and overall discretionary spending for residents in Minneapolis.
Lifestyle trade-offs
Lifestyle differences extend beyond price. Birmingham experiences a humid subtropical climate with hot summers and mild winters. Minneapolis has a continental climate, known for cold, snowy winters and warm summers. Getting around in Birmingham is largely car-dependent, while Minneapolis offers more robust public transit options and a more walkable urban core, especially downtown.
Bottom line
For those weighing a move, the financial implications are clear: Birmingham offers a substantially lower cost of living, primarily due to much more affordable housing. While Minneapolis provides a different urban experience and climate, households will find their budgets stretch further in Birmingham, making it a more economical choice for daily expenses and long-term housing costs.
| Measure | Birmingham, AL | Minneapolis, MN |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 108 |
| Housing index | 58 | 94 |
| Transportation index | 88 | 98 |
| Food index | 85 | 102 |
| Healthcare index | 88 | 105 |
| Utilities index | 92 | 108 |
| Misc index | 75 | 98 |
| Median home price | $198,000 | $328,000 |
| Median 1-bedroom rent | $925/mo | $1,450/mo |
| Average commute | 25 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.