Denver vs Minneapolis: cost of living compared
Minneapolis is 16% cheaper than Denver overall. State income tax tops out around 4.4% in CO 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 Denver and Minneapolis reveals a significant difference in overall cost of living. Denver is noticeably more expensive, with its higher housing costs being the primary factor driving this disparity. While some categories show similar spending, the cumulative effect of higher expenses in Denver means a household budget will stretch further in Minneapolis. This difference is a key consideration for anyone weighing a move between these two metropolitan areas.
Housing
Housing costs present a substantial contrast. Both median home prices and typical one-bedroom rents are considerably higher in Denver than in Minneapolis. Denver's housing market is notably more expensive, reflecting its mountain-adjacent location and robust growth. Minneapolis offers more affordable options for both renters and prospective homeowners, with a diverse housing stock that includes historic homes and newer developments, generally making homeownership more accessible.
Taxes and everyday costs
Daily expenses also vary, though less dramatically than housing. State income tax is higher in Minneapolis, which impacts take-home pay. However, transportation, food, healthcare, and miscellaneous costs are generally higher in Denver. Utilities are an exception, being somewhat higher in Minneapolis, likely due to colder winters. Overall, routine spending on essential goods and services will typically be more budget-friendly in Minneapolis.
Lifestyle trade-offs
Beyond costs, these cities offer distinct lifestyles. Denver boasts a high-altitude, semi-arid climate with abundant sunshine and proximity to the Rocky Mountains, attracting outdoor enthusiasts. Minneapolis experiences a continental climate with cold, snowy winters and warm summers, known for its extensive park system and lakes. Both cities have developed public transit options, but Denver's car-centric sprawl contrasts with Minneapolis's more compact, walkable core and bike-friendly infrastructure.
Bottom line
For those considering a move, the financial implications are clear: a household budget will generally go much further in Minneapolis than in Denver. While Minneapolis has a higher state income tax, its significantly lower housing costs, combined with generally cheaper everyday expenses, create a substantial overall savings. Denver's appeal lies in its mountain access and climate, but it comes with a noticeably higher price tag for nearly all aspects of living.
| Measure | Denver, CO | Minneapolis, MN |
|---|---|---|
| Overall cost of living (US avg = 100) | 128 | 108 |
| Housing index | 146 | 94 |
| Transportation index | 104 | 98 |
| Food index | 105 | 102 |
| Healthcare index | 108 | 105 |
| Utilities index | 98 | 108 |
| Misc index | 108 | 98 |
| Median home price | $548,000 | $328,000 |
| Median 1-bedroom rent | $1,950/mo | $1,450/mo |
| Average commute | 28 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.