Chicago vs Minneapolis: cost of living compared
Minneapolis is 8% cheaper than Chicago overall. State income tax tops out around 4.95% in IL 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
Overall, Minneapolis presents a more affordable cost of living compared to Chicago, with its total expenses noticeably lower. This difference is largely driven by significantly higher transportation costs in Chicago, along with generally higher prices for food, healthcare, and miscellaneous goods and services. While housing costs are somewhat similar, other spending categories contribute to Chicago's higher overall index.
Housing
When considering housing, median home prices are quite close between the two metros, with Minneapolis showing a slightly higher median. However, renting a one-bedroom apartment is noticeably more expensive in Chicago. Both cities offer a mix of housing types, from urban apartments to single-family homes, but the cost of entry for renters is more favorable in Minneapolis. Property taxes and insurance costs can vary significantly by location within each metro.
Taxes and everyday costs
Daily expenses for transportation, food, and healthcare are generally higher in Chicago. Commuting takes longer on average in Chicago, and its transportation costs are considerably elevated compared to Minneapolis. While utilities are slightly more expensive in Minneapolis, this is often offset by Chicago's higher costs for other daily necessities. State income tax is also a factor, with Minneapolis having a higher rate.
Lifestyle trade-offs
Both cities experience cold winters, but Chicago is known for its more expansive urban density and a faster pace of life, offering extensive public transit options. Minneapolis, while also a major city, often feels a bit more spread out with a slightly shorter average commute time. Its climate is similar, with cold winters and warm summers. Both metros provide a wide array of cultural and recreational opportunities.
Bottom line
Moving from Chicago to Minneapolis generally means a reduction in overall living expenses, primarily due to lower costs for transportation, food, and miscellaneous goods, despite a higher state income tax rate. Renters will likely find more affordable options in Minneapolis, while home buyers will see relatively similar median prices. The decision often balances Chicago's larger city amenities against Minneapolis's more moderate cost profile.
| Measure | Chicago, IL | Minneapolis, MN |
|---|---|---|
| Overall cost of living (US avg = 100) | 118 | 108 |
| Housing index | 97 | 94 |
| Transportation index | 121 | 98 |
| Food index | 105 | 102 |
| Healthcare index | 108 | 105 |
| Utilities index | 102 | 108 |
| Misc index | 108 | 98 |
| Median home price | $318,000 | $328,000 |
| Median 1-bedroom rent | $1,650/mo | $1,450/mo |
| Average commute | 34 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.