Budget Alert: Rochester is Now Outpricing the Metro

For decades, the Twin Cities have held the crown for Minnesota's highest cost of living, but a new economic heavyweight has officially claimed the top spot. You might want to check your bank balance before you consider a move to this southeast area of the state.

Minneapolis and Saint Paul are the two biggest individual cities in the state of Minnesota, and the Twin Cities metro is the largest urban area. But that area can no longer claim the highest cost of living in the North Star State.

Budget Alert: Why the Twin Cities Are No Longer MN's Most Expensive Area

Whether you look at the increasing cost of groceries, or the suddenly sky-high cost of gasoline-- which has gone up a whopping 35 cents or more in parts of Minnesota in the last week-- there are a lot of things that eat up the monthly budget of families here in the Land of 10,000 Lakes.

SEE ALSO: Is Gasoline Set to Top $4 a Gallon in Rochester?

But new data shows that the area of Minnesota with the highest cost of living these days is NOT in the Twin Cities-- it's actually in the Rochester area. Rochester is the third-largest city in Minnesota, and is the largest city outside the Twin Cities metro. And now the city known as the home of the world-famous Mayo Clinic is also home to the highest cost of living in the Gopher State.

The Cost of Living Crisis: New Data Ranks Minnesota’s Most Costly Metro

A new report from the Economic Policy Institute (EPI) looked at the following costs that an average family of four now faces in Minnesota.

• Housing
• Food
• Child Care
• Transportation
• Health Care
• Other Necessities
• Taxes

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And when you factor in the latest costs, this story from Minnesota Now reports that Rochester tops the five biggest metro areas in the state for an average family of four, coming in with an average cost of living at $138,018-- well over the $134,780 a family of four incurs in the Twin Cities, EPI data shows:

1. Rochester metro: $138,018  (up from $126,858 in 2025 and $123,640 in 2024)
2. Twin Cities metro: $134,789 (up from $127,391 in 2025 and $119,229 in 2024)
3. St. Cloud metro: $123,747 (up from $117,247 in 2025 and $99,166 in 2024)
4. Mankato metro: $112,330 (up from $105,867 in 2025 and $103,886 in 2024)
5. Duluth metro: $107,757 (up from $103,625 in 2025 and $101,940 in 2024)

Where to Move? Finding the Most Affordable Spots in the Bold North

Now, while the Rochester area might have the highest cost of living right now, if you're looking for places in Minnesota where costs are lower, we've got you covered. Keep scrolling to check out the areas of the Bold North where the cost of living in now the lowest.