5 affordable places to live in Minnesota
If you're looking for a low-cost place to purchase your Minnesota home, here are five cities and towns recognized for their affordability.
1. Rochester
Rochester is the Minnesota city with the lowest cost of living. It ranks 68th on Niche's list of the most affordable cities in the United States, and it's also been ranked second-best U.S. city in which to buy a house. Around 69% of residents own in this attractive urban area, and homes here have a median value of $188,000 -- just above the national median of $184,700. However, Olmsted County does have some of the highest property taxes in the U.S., averaging 1.09% of a property's assessed fair market value, according to Tax Rates.org.
2. St. Paul
St. Paul is number 108 in all of America in terms of cost-of-living. It's also one of the most diverse cities, and has been recognized as a great place for young professionals. It offers attractions such as the Como Park Zoo and Conservatory and the Science Museum of Minnesota. The low cost of homeownership is also part of why the city is so attractive, with a median price of $196,500. Property taxes in St. Paul also come in a bit below those in Rochester, with an average rate of 1.05% of the assessed fair market value of homes.
3. Minneapolis
Minneapolis is the eighth-best city for young professionals, but its residents, unlike those of other cities in our list, tend to rent their homes -- just 47% own their homes. The high median home value of $235,900 is one reason there are fewer owners than renters, along with the relatively high property tax rate of 1.14% of assessed fair market value in Hennepin County.
4. Hibbing
Though it's not quite a city, Hibbing is a large town, with a population of 16,106. Although it's ranked 885th for lowest cost of living in America, it comes in at 7 out of 475 places in Minnesota for this metric. Its median home value is much lower than the other places on this list, coming in at $103,000 -- which helps explain why 71% of residents own their own homes. Property taxes in St. Louis County are also lower at 0.78%, which makes becoming a homeowner here much cheaper.
5. New Ulm
The town of New Ulm has a population of just over 13,000, and has been recognized as an affordable place to live, as well as one of the top places in the U.S. to retire. The median home value here is $133,900, and 73% of residents own their homes rather than renting them. Taxes are a bit higher here than in the other town on this list -- Brown County has an average property tax rate of 1.03% of a property's assessed fair market value. Residents may be willing to pay the higher taxes to enjoy the attractions that New Ulm offers, including Flandrau State Park and the Herman Monument Society, where you can take in the views and enjoy exciting historical exhibits.
While many factors go into deciding where to buy a home, cost of living is definitely worth considering. Buying in a less-expensive area means your money stretches farther. This could translate to borrowing less, qualifying for a mortgage loan at a better rate, lower monthly payments, and paying less over time to purchase your home. Check out our mortgage calculator to help you estimate your monthly payment, including principal, interest, insurance, taxes, and PMI.
