Best Affordable Places to Live in Minnesota in 2025

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A charming mid-sized city spanning three counties and located just 90 minutes southwest of Minneapolis, Mankato has a lot going for it — in addition to a cost of living about 11% lower than the American average. Outdoorsy adventurers will enjoy excursions to Minneopa Falls and the Mount Kato ski bowl, while historic homes, parks, breweries, and more mean there’s never a shortage of things to do in town.

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The (slightly) smaller twin of Minnesota’s Twin Cities, not to mention the state’s capital, St. Paul beckons for a variety of reasons — not least of which are its affordable housing and bustling downtown. Residents can enjoy easy access to the Science Museum of Minnesota and the Como Park Zoo, as well as diverse neighborhoods speckled with character-filled historic architecture.

Thinking of buying a property? It can be helpful to research which type of mortgage loan will suit you best.

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The largest city in Minnesota, Minneapolis is a metropolis that boasts plenty of job opportunities across fields ranging from health care to finance to manufacturing. Plus, as home to the University of Minnesota, the city provides ample educational opportunities for anyone looking to brush up on their skills or get a new start. The presence of the college also brings plenty of art and culture through the city, and the international airport here serves as a portal to the rest of the world.

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Families may appreciate that Maple Grove has well-regarded public schools, in particular those in the Wayzata Public School District. Beyond that, the suburb is within easy reach of Minneapolis and all its many to-dos, as well as outdoorsy adventures outside the city.

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Another Minneapolis suburb located on the other side of town, Eagan ranks high on our list. Families may be drawn to the solid public schools, as well as the fact that it has plenty of playgrounds and outdoor recreation options suited for children.

With affordable home values, there’s opportunity for would-be homeowners, no jumbo mortgage needed.

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For parents who believe life is better on the lake, Duluth offers ample opportunities to raise a family in an affordable setting. A mid-sized city tucked close to other communities, Duluth has lots of opportunities for kids and adults alike, including educational yet fun attractions like the Great Lakes Aquarium and Glensheen Mansion. The yearly Duluth Airshow will keep little engineers gazing upwards, while job opportunities in health care, education, and hospitality will keep parents gainfully busy.

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All of the action of Minneapolis at a more affordable price tag — and meanwhile, the two towns are only 20 minutes apart, which means young adults who move to St. Paul get double the career and dating opportunities. No wonder the city’s median age is under 35.

If you’re thinking of putting down roots and buying a home, it can be wise to learn the differences between mortgage prequalification and preapproval so you’re ready to bid.

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For young adults seeking the coziness of a mid-sized town, Duluth is a draw for its twin attractions of scenic surroundings and low cost of living. Plus, its median age is currently 37, and many of its households are singletons. What better place to take a date than the Lake Superior waterfront?

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Rochester offers opportunities for single young adults despite its size — and for those in health care, ample career opportunities as the birthplace of the renowned Mayo Clinic. Retail and business are other growing sectors, and residents say they enjoy how close everything is, making for short commutes. Community events (music, art shows) round out Rochester’s appeal

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Not every community has something on offer for both young adults and retirees — but not every community is Rochester. Some 25% of its population is age 55 and over, and since it’s the headquarter city for the Mayo Clinic, quality health care options are never far from home.

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A small, scenic, and historic town tucked along the banks of the Mississippi River, Winona keeps residents of all ages young with the presence of its college community. University students also ensure the town gets more than its fair share of art and culture for a community of its size — and of course, all of this is at a cost of living 14% lower than the national average.

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About a quarter of Albert Lea’s population is aged 65 or over, which makes this small town one that’s full of new friends for seniors. The town’s Senior Center organizes a variety of events and activities that keep older adults moving, and everything’s a little easier with a cost of living 15% lower than the U.S. average.

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If you should ever grow tired of the Mississippi waterfront, take heart: Winona also offers theater, galleries, museums, and more for those in need of indoorsy fun. With the bigger city of Rochester close at hand, this small town truly offers everything one could need.

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Living along Lake Superior is its own reward, and Duluth residents can also appreciate its many indoorsy attractions when the weather grows cold. (Or they can double down and take to the shores of the lake for some ice fishing.)

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Another Mississippi-side small town, Red Wing bears the distinction of being located just an hour outside of the Twin Cities, so its residents can benefit from big-city to-dos, too. Plus a cost of living 9% lower than the national average makes it eminently affordable for many.